Posted onFebruary 17/2020
Life is unexpected, which is why the concept of waiting to buy life insurance “until you need it” is simply impossible. Nobody knows what will happen, and being prepared ahead of time to protect those you know and love is the entire purpose of a life insurance policy. At Northwood Mortgage, one of the questions we often receive is: “When should life insurance become a priority?” The answer is: Now. However, the type of policy you’ll require is another topic altogether. For now, let’s focus on when to buy and why.
Buying While You’re Young
We all feel invincible in our youth, but these notions fade as our 20s strike, and things like careers, houses, marriage, and children come into the picture. Of course, everybody’s journey is different, and some may not include any of these things. However, most adults in their twenties are beginning to look at life differently and measure responsibilities more seriously.
Some reasons you might consider life insurance include:
Student loan debt you don’t want to leave on parents or other loved ones
Credit cards and personal loans that could burden family
Wedding plans that will pass your financial obligations to a spouse
Pregnancy or adoption that could pass financial obligations to a child
This is the time when term policies may not seem as wise, and whole policies are a more strategic and economic plan. Things like workplace life insurance may also become a factor. At this age, most Canadians are settled into the jobs they’re likely to remain with until retirement.
Life Insurance in Your 30s and 40s
As 20 becomes 30 and 30 starts leaning toward 40, life insurance is bought for different reasons. You may want to have much more of it than you bothered to buy in your 20s. Mortgages, families, and your chosen path in the world requires a more thorough form of coverage with the potential for a bigger payout in the event of a death.
This is the time when term policies may not seem as wise, and whole policies are a more strategic and economical plan. Things like workplace life insurance may also become a factor. At this age, most Canadians are settled into the jobs they’re likely to remain with until retirement.
Life Insurance in Middle Age
As people reach their 60s and 70s, life insurance is harder to be approved for and more expensive to buy. However, if it’s in your interest to buy, it’s never too late. It’s important at this age to weigh the pros and cons of each policy you consider and stipulate riders that need to be added to make the policy work for you.
If you are healthy, a life insurance policy during middle age is perfectly reasonable. Many companies are beginning to extend policies to include special coverage for those over the age of 60.
Talk to a Life Insurance Company
Our team of professional mortgage brokers and life insurance specialists are here to help. If you’re interested in learning more about life insurance and when it becomes necessary, contact us at 1-888-492-3690 to get started.