When is the best time to get life insurance?
3 Minute Read
Summary
- Life insurance is most affordable when purchased young and in good health, with lower long‑term premiums.
- Major life events like starting a family or taking on debt can increase the need for coverage.
- Term and permanent policies offer different benefits depending on budget, timeline, and financial goals.
If you are over 18 and wondering when to get a life insurance policy, the answer is right now.
Life is full of ups and downs, with bills to pay and responsibilities to meet. Getting the right life insurance coverage ensures that those ups and downs – as well as bills and expenses – don’t become the responsibility of your loved ones. By protecting your life, you’re protecting the lives of those who count on you the most. This is why, according to the Canadian Life and Health Insurance Association 2022 report, 22 million Canadians have life insurance.
So, if you’re wondering when you should get life insurance, we’re here to help. Here are five reasons to consider purchasing a policy.
To save money
Permanent life insurance policies do not have a set term, meaning they provide coverage for the entire length of your life as long as premiums are paid on time. A significant advantage of permanent life insurance is that the premiums remain consistent and will not increase as you age, offering long-term financial predictability.
Term life insurance, on the other hand, offers fixed-rate coverage for a specific period, such as 5, 10, 15, 20, or even up to 100 years. Throughout the term, your monthly or annual premiums stay the same, making it easier to plan for and manage costs.
When deciding between the two options, it’s advisable to consult a licensed insurance agent who can help determine which policy aligns best with your needs and budget. While term life insurance is generally more affordable when you are younger, it’s important to note that premiums may increase as you age, making early decisions crucial.
Starting a family
Usually, people don’t start considering life insurance until they are responsible for other people’s well-being. When starting a family, it’s no longer just your future you must think about; you must also consider your spouse and your children’s future. We know it’s not ideal to imagine a situation where you’re no longer around to take care of the people important to you; however, it is an important consideration when looking ahead.
Purchasing a life insurance policy can provide critical support for your loved ones by replacing income, ensuring financial stability for your children or dependents, covering funeral expenses, paying off debts, making charitable contributions, or leaving money in a trust or estate.
Family doesn’t just mean a spouse and children; an unexpected death could also negatively affect your parents, siblings and other relatives, depending on your situation. So, even if you are single or childless, life insurance is still something you should consider.
You are healthy
If you are currently in good health, now is the best time to buy a life insurance policy. Your overall health is a factor in your eligibility and the cost of your premiums; it’s best to buy while you’re still in good shape.
Planning for retirement
Did you know that life insurance policies are investments for your retirement? Permanent life insurance is designed to build cash over time that you can borrow against, laying the foundation for long-term financial security. It can be used towards retirement income, estate planning, end-of-life expenses and other lifelong needs.
You're accumulating debt
If you’re starting to do things like buying a home, investing in your education, starting a business, or just taking on credit card debt, you should consider getting life insurance.
It is all about peace of mind, as it helps ensure your beneficiaries can manage the financial impact of your passing. A life insurance policy is a good way to protect your family, as it can cover mortgage payouts or be a replacement income to cover accumulated debt in the event of your death.
What kind of insurance suits my needs?
The nice thing about CAA Protect is the options. We know life isn’t one-size-fits-all, and neither are the people we serve or the life stages at which life insurance becomes important to them.
Book an appointment with one of our insurance advisors for a free personalized assessment and find the coverage that fits your needs. To speak to a professional who can guide you to the right coverage from the right insurer at the right price, call us at 1-800-709-5809 or email us at info@caaprotect.ca.
