Life insurance… just for old folks?

Are you one of those people who has no life insurance and doesn’t see the need? Here are 5 good reasons to take out a policy while you’re still young.

Let’s face it, what with paying off your student loan, saving for a down payment on your first home, the car and all the other stuff you have to pay for each month, life insurance probably doesn’t always come top of your list of priorities…

And yet there are a number of good reasons for adding term life insurance to your monthly budget.

1. Protect your loved ones

What would life be like for your loved ones if the worst happened and your spouse could no longer rely on your income, even though the couple still has debts to pay off?

That’s where life insurance comes to the rescue, thanks to the tax-free amount it pays your beneficiaries when you die.

The policy’s proceeds could be used to:

• Maintain your family and loved ones’ quality of life
• Protect the family assets
• Pay your debts
• Leave your family and loved ones a financial legacy

2. Take advantage of affordable protection

With its pre-determined period of coverage, term life insurance is often less expensive than permanent life insurance and universal life insurance, products that insure you for your entire lifetime.

That makes it easier to find room in your budget for the insurance premium … a small price to pay for peace of mind.

What’s more, the premiums are guaranteed to remain the same throughout the contract.

3. The benefit of youth

Taking out insurance when you’re young and in good health pays off! The younger and healthier you are, the more likely the premium will be lower.

Conversely, the older you are, the greater the chance you might be charged an additional premium, or even be refused insurance by some companies, if you are suffering from an illness.

4. Modify your contract as your needs change

The birth of a child and the purchase of a home are exciting events but they might also signal that it’s time to look at whether your life insurance coverage needs updating.

Once you’re insured, it’s easy to modify your contract.

You can:

• Convert your term life insurance into permanent life insurance without evidence of insurability
• Increase the insurance amount (with evidence of insurability)
• Add other insurance products such as disability insurance or critical illness insurance

5. Add your children to your contract

Several insurance companies allow you to add your children to your insurance contract, to give you a comprehensive and affordable family plan.

As well as being a simple and flexible solution, the family contract means you pay only one contract fee.

Discuss it with your advisor

Before taking out term life insurance, talk to your advisor.

Your advisor will define the best type of life insurance for your situation, help you calculate the amount of insurance you need to ensure you are well protected and, most importantly, he will develop a financial strategy to adapt to your ever-changing needs.

Note: This blog post is provided for information purposes only. It is not a substitute for professional legal, financial or fiscal advice. For advice specific to your personal situation, always speak with your advisor. SSQ cannot be held responsible for any decision made as a result of reading this blog post.