What is the right kind of insurance policy for your stage of life? An expert tells us

Is there ever a wrong time to be thinking about getting a life insurance policy? It's never too early or too late to enjoy some peace of mind and protect your family's future. But what matters to you most is likely to change depending on your age and what stage of life you're at.

If you're buying your first home, have recently retired, or are somewhere in between, there are insurance policies available to meet your needs. Term life insurance, permanent, disability, critical illness; it can seem overwhelming, so, what's the best fit for your lifestyle?

We asked Jarrett Thompson, Managing Director at CAA North & East Ontario, about the best times to get life insurance and what you should be considering. If you missed the CTV interview with Jarrett, here’s what he had to say about getting insurance at various stages of life.  

Is starting a family or buying a home when most people think about life insurance?

Those two life events are big drivers for life insurance, along with getting married. Those are serious life stages where you suddenly have debt and dependents who rely on you. Plus, if you are forward-thinking, you’re also considering kids’ education and maybe even a retirement nest egg.  

As any parent knows, kids are game-changers. Once children are on the scene, together with the cost of raising them, it’s more important than ever to think about life, disability and critical care insurance.  

As your income grows along with your family and debt load, this life stage is the perfect time to review existing policies to add dependents or adjust according to what you’d need to maintain your lifestyle.

Another key moment for life insurance is when kids are grown, and retirement is about a decade away—what trends do you see then?

This life stage has lots going on. You might be close to paying off your mortgage, or maybe you’re divorced and starting a new one. The kids may be out of the house, but they’re still in university and dependent on their parents for many things. You may also want to think about that retirement plan. 

As your debts lessen and your savings grow, it’s time to review your coverage and consider other kinds of insurance to manage income replacement.  

Long-term care could also be on your mind, making critical care or disability insurance ideal to cover you for the unexpected. 

What life insurance works best for retirees?

For many retirees, life insurance is often used to cover final expenses, leave a legacy, or care for loved ones.

At this stage, most term life insurance policies have expired, but permanent life insurance remains in effect. Permanent life insurance lasts the whole of your life, and the cash value builds, so if you cancel at any time, you receive cash back. Or you can take a loan against it.  

If you already hold permanent critical care insurance, it would be wise to maintain the policy. Even if you receive a pension or rely on RRSPs, these may not be enough. Funeral expenses and outstanding debts can add up, making the right insurance a relief to your loved ones.  

Having adequate life insurance is an important way to protect you and your family and secure their financial future. Regardless of your stage of life, CAA has a life insurance policy that works for you. You can book an online appointment with a CAA Protect advisor or speak with an agent at 1-800-709-5809.