Does a 21-year-old need life insurance?
By taking it now, you can lock in a lower premium rate for life
Does it make sense for a young person to have life insurance?
Think you're too young for life insurance? Buying early can help save on premiums.
Q: I am 21-years-old, studying full-time, working part-time, and I would like to know when is the “right” time to get life insurance and if I really need life insurance this young. I work in the banking services industry and I hear a lot of my customers discussing their insurance details with me and how I should get life insurance. But to be honest, I have no clue if I should get it all and if so, when should I purchase it?
—Brenda M.
Get personalized quotes from Canada’s top life insurance providers.All for free with ratehub.ca. Let’s get started.*This will open a new tab. Just close the tab to return to MoneySense.
You have debt with a co-signer
If your parents signed off on your student loans, they’re responsible for paying off your debt if you die. That could be a huge burden for a mourning family. If you have a life insurance policy and you pass away, your family can use the policy to pay off your debt.You’re buying a home
Let’s say you buy a place with your partner. Now imagine one of you suddenly wasn’t there to help pay the mortgage. Buying a term life insurance policy with enough coverage to pay off the house could help your partner stay in the home.You make a lot less (or a lot more) than your partner
Is there a big disparity in income between you and your partner? If so, then insuring the difference in income means that if the higher income person dies, the lower earning person can maintain their standard of living while they rebuild their lives. And finally, buying life insurance requires that you take a medical exam to determine your premiums and level of coverage. You’ll want to lock in a standard rate now in case illness is in your future: If you have a term insurance policy, there are no further medical requirements for the duration of the term. So it might be a good idea to apply now to take advantage of your good health—and better rates. Ask an Insurance Expert : Leave your question for Lorne » Lorne Marr, is the founder of LSM Insurance, an independent Canadian Life Insurance Brokerage company in Markham, Ont. READ MORE:- 7 disability insurance myths to stop believing
- 10 travel insurance myths to stop believing now
- Is pet insurance worth it?
- How to cut your auto insurance costs
- 4 weird insurance policies that actually exist
Share this article Share on Facebook Share on Twitter Share on Linkedin Share on Reddit Share on Email
Related Articles
Using whole life insurance for tax-free income in retirement
Borrowing against a policy’s cash value can provide tax-free income. But there are still costs involved and other factors...
Should you buy life insurance to pay for tax owed upon death?
When you die, capital gains tax might apply to some of your assets. Can life insurance help shelter your...
RBC’s takeover of HSBC: What will happen to HSBC Canada customers?
HSBC Canada bank accounts, credit cards, mortgages and investments are moving to RBC. What steps should HSBC customers take...
Divorce and life insurance: How to make sure your family stays protected
If you’re going through a divorce, you have many financial decisions to make, including how to update your life...
Three reasons to have a will and estate plan
Creating a will and estate plan may not be the most romantic gesture, but it’s an essential demonstration of...
Should seniors cancel their life insurance policies?
At what point do we no longer need life insurance? You will find the answer by going back to...
Infinite banking in Canada: Should you borrow from your life insurance policy?
The “Infinite Banking Concept” is gaining popularity with Canadian retirees—but it’s not right for everyone. Here’s how this leverage...
How to plan for retirement for Canadians: A review of Four Steps to a Worry-Free Retirement course
Just in time for Canadian Financial Literacy Month in November, Four Steps to a Worry-Free Retirement course by Kyle...
Critical illness and disability insurance in Canada
If you became ill or injured, how long could you keep paying for household costs, including your mortgage? Here’s...