When you're young, it's easy to convince yourself that you're going to live forever. If you fall victim to this kind of thinking, you might find that you're not as well prepared financially as you ought to be.
Like it or not, though, it's important to invest in life insurance, no matter how young you are.
Nearly one-fourth of Canadians (23 per cent) admit that they're not prepared financially if they were to pass away in the near future. And, only 16 per cent have life insurance that would cover the mortgage payments if they were to pass away.
Do you have life insurance? Is it as comprehensive as you'd like it to be?
Read on to learn more about the importance of life insurance for young adults. You'll learn seven reasons it's a great investment.
When you're looking into life insurance, age and health are two of the most important factors an insurance provider will take into account.
When you're young and healthy, life insurance is a lot more affordable than it is when you're older and closer to the average life expectancy. Age increases your chances of developing certain diseases, too, which is something insurance providers take into account.
Take advantage of your youth and relative health now and sign up for a life insurance policy when the premiums will be lower.
If you're like like 77 per cent of Canadians, you probably have regrets about your student debts. You may think that you have plenty of time to pay off your student loans, but tomorrow is not always guaranteed.
If something happened to you before you can pay your student loans off completely, the money from your life insurance policy could be used to cover the remaining balance.
This helps to protect your parents or spouse from having to shoulder the burden when you're gone.
You might not have a home or dependents yet. But, do you want those things eventually? If so, it's a good idea to insure yourself now rather than waiting until later.
If you have life insurance now, you'll have peace of mind later knowing that your children are cared for in the event that something happens to you.
You'll also know that the money from your life insurance policy can be used to finish paying for your house after you're gone.
Maybe you don't have any dependents or a home to pay off. That doesn't mean a life insurance policy isn't a good investment for you.
You can dedicate the money from your life insurance policy to an organization in your community or to your favourite charity. Who doesn't want to make a difference, even after they're gone?
If saving money is hard for you and you're always dipping into your emergency fund, a life insurance policy could be a good idea. It forces you to set money aside on a regular basis to make use of when you're older.
There are certain types of life insurance that can also act as an investment account. By depositing money into them regularly (money that you can't take out on a whim), you'll be able to save up a lot of money for later on in your life.
Not only is life insurance more affordable when you're young, but it's also easier to purchase.
If you have youth and health on your side, you won't have to jump through any hoops to purchase life insurance. Insurance providers will practically be banging down your door to get you to buy insurance from them.
If you wait until you're older and actually want life insurance, you might have a harder time finding a company that will cover you (or provide the amount of insurance you want).
Finally, buying life insurance when your young takes the burden of planning and paying for a funeral off of your parents.
Nobody wants to think about their parents having to deal with these issues. But, it would be worse if, in addition to your parents grieving the loss of you, they also had to scramble to pay for your funeral.
Okay, you're convinced that it's important to invest in life insurance as a young adult. Where do you begin when it comes to purchasing life insurance, though?
There are two main types of life insurance:
Term life insurance is usually cheaper than permanent life insurance, but many people like the peace of mind that comes with a permanent policy.
There are lots of different life insurance providers out there. How do you know which one to work with when purchasing life insurance?
Here are some guidelines that will help you make the right decision:
This last point is especially important. Don't just purchase a policy from the first provider you look into -- do your research to make sure you're getting the best deal.
Now that you know more about life insurance and the benefits of life insurance for young adults, are you ready to get signed up?
If you're ready to get life insurance for yourself, we can help at Insurdinary. We're happy to offer Canada's lowest life insurance prices.
We also offer a variety of other types of insurance, including auto insurance, health insurance, and disability insurance.
Contact us today to learn more about the different types of life insurance we offer, or to get a quote.