MR
  • Insurance
  • Mortgages
  • Debt Management
  • Personal Finance
  • Credit Cards
  • Retirement Planning
  • News
No Result
View All Result
Contact Us
MR
  • Insurance
  • Mortgages
  • Debt Management
  • Personal Finance
  • Credit Cards
  • Retirement Planning
  • News
No Result
View All Result
MR
No Result
View All Result
Home Insurance

Is Life Insurance Really Worth It or Is it Over-Hyped?

Adeola Adegoke by Adeola Adegoke
November 26, 2022
A A
is life insurance worth it
587
SHARES
3.3k
VIEWS
Share on FacebookShare on Twitter

You may have heard everyone talk about life insurance. But do you need life insurance? Is life insurance worth it? Is it worth the premiums that you will have to pay monthly or annually?

Suppose these are the questions on your mind, or you may even wonder, ‘Can’t I use these premiums for something else?’

In that case, you should read on. This article discusses why buying a life insurance policy in Canada is worth considering.

Is Life Insurance Worth It in Canada?

There is no one-size-fits-all answer to this question. Every situation is unique, and each individual’s situation determines if buying a life insurance policy right now is worth it or not.

If you have a person or persons who depend on your income, you would need life insurance to ensure that they are financially protected should something happen to you.

So, life insurance is 100% worth getting if you have a family and dependents that would be financially affected if you die.

If you pass away, would your family be able to provide for themselves? Do they have enough to cover your final expenses? Would your death adversely lead to changing their current lifestyle? Would they be able to cover your mortgage payments?

If your answer is no, then life insurance is worth considering. The premiums you would pay to maintain your life insurance coverage are offset by the significant death benefit your family would receive.

However, some people can genuinely forget about buying a life insurance policy for now. Not everyone has a dependent or some debt they have to pay. Some may have enough assets to care for their dependents if they die.

Who Needs Life Insurance?

Deciding if buying life insurance is right for you at this moment is a challenging task. Not everyone needs life insurance right now, but it is still an excellent choice for everyone.

Deciding who needs life insurance is a pretty broad question, and it varies case by case. Unlike car insurance in Canada, life insurance is not required by the law. So, your situation determines if you need life insurance or not.

Suppose you have a spouse and kids who depend financially on you and want them to maintain their current lifestyle if something happens to you. You would need a life insurance policy.

Suppose you have dependents and don’t want them to be burdened with your debts, such as mortgage, car loans, and credit card bills. In that case, you need a life insurance policy if you want your dependents to stay in your family home and not forfeit it.

Suppose you have family and dependents and want to ensure they are looked after, ensure they can cover their everyday living expenses, and pay for future living expenses, like the cost of post-secondary education for your kids. In that case, you would need a life insurance policy.

If you are young, single, and without any dependents, you can still get a life insurance policy. They may use the death benefit payout to cover any outstanding debts you might have and also cover the inevitable final expenses. They can also use it to support your loved ones financially or donate to your favorite charities.

If you own a business and want to keep the company afloat after you die, you need a life insurance policy with the business as your life insurance beneficiary.

Suppose you are a senior and you don’t want your family to deal with the financial hardships of planning your funeral, and you also wish to leave an inheritance for your grandchildren. In that case, a life insurance policy is worth considering.

Who Doesn’t Need Life Insurance?

Suppose you are young, single, without debts or dependents, and have enough assets and savings to cover your final expenses and care for your loved ones. In that case, buying a life insurance policy might not be necessary.

Also, suppose you have a family and are financially buoyant enough to cover to leave them well-cared for, taking care of your mortgage, leaving them no outstanding debts, with lots of savings tucked away. In that case, you might not necessarily need a life insurance policy.

Further, if you are not financially capable of taking up another monthly bill to pay, it might be wiser to save your money elsewhere if you can’t afford monthly premiums.

However, buying a life insurance policy comes with many benefits. As a young and single Canadian, it would be better to buy a policy at your young age and secure low premiums.

Key Life Stages Where Life Insurance Can Help You

Life insurance will have different benefits at different stages in your life.

Your life insurance policy will be worth the premiums you will be paying when you look at the benefits you will get at these stages of your life.

Young Age

While buying a life insurance policy might not be at the top of your list at your young age, not purchasing it will make you miss out on an essential financial planning component.

Most insurance companies offer lower premiums to young people. The younger and healthier you are, the lower the premiums you will have to pay.

A life insurance policy can also be an investment opportunity for you at a young age. A permanent life insurance policy offers cash value that can be used as an investment vehicle.

Middle Age

If you are at this stage of your life, you might have already had a family and purchased a home that requires a mortgage.

A life insurance policy can help protect your family from covering the mortgage debts; suppose something happens to you.

Life insurance can also provide financial protection for your young children who depend on your income to ensure their lifestyle is not affected by your loss. The payout can also help cover their college tuition.

Retired

After many years of labor and hard work, retirement gives you time to enjoy and raise your feet.

A life insurance policy can give you peace of mind knowing that you are leaving your family financially protected.

Your life insurance death benefit will cover the outstanding mortgage and final expenses should something happen to you. Your family will not be left with the burden of paying your debts.

You can also extend your financial protection to your grandchildren and their needs.

Final Thoughts on Is Life Insurance Worth It

So, if you are wondering, ‘Is life insurance worth it?’ As you have seen, the answer is not simple.

It all depends on your financial obligations, goals, and current situation. A life insurance policy could be extremely important if you want to financially secure your family, business, or estate.

However, buying a life insurance policy from companies like Manulife may not be necessary if you are single, living modest, are can save through other means. But life insurance would be worth considering if you have dependents, outstanding debts, and not enough savings to care for your loved ones and cover your final expenses.

Author Profile
Adeola Adegoke
Co-founder/CEO at The SEO Hive Digital Solutions | Website

Hi, I'm Adeola Adegoke. I am a licensed Insurance Broker in Manitoba, and I hold a master’s degree in Mathematical Sciences (with a major in Financial Modeling) from the African Institute for Mathematical Sciences (AIMS), Tanzania.

Also, I have a second master's degree in Statistics from the University of Regina, and I am currently pursuing my Ph.D. in Statistics at the University of Manitoba.

The primary purpose of Money Reverie is to help everyday Canadians make better financial decisions by providing up-to-date financial news and information, reports, product reviews, and government programs.

Related Posts
  • Adeola Adegoke
    https://www.moneyreverie.com/author/adeola-adegoke/
    How To Register and Open A CRA My Account in 2023
  • Adeola Adegoke
    https://www.moneyreverie.com/author/adeola-adegoke/
    Property Taxes in Canada: Everything You Need To Know (2023)
  • Adeola Adegoke
    https://www.moneyreverie.com/author/adeola-adegoke/
    A Simple Guide To Sales Tax Canada 2023
  • Adeola Adegoke
    https://www.moneyreverie.com/author/adeola-adegoke/
    FHSA Canada: An Overview of Tax-Free First Home Savings Account 2023
Previous Post

How To Choose A Life Insurance Beneficiary [11 Easy Tips]

Next Post

Can I Buy Life Insurance For Pre-existing Conditions in 2022

Related Stories

credit card insurance
Insurance

Credit Card Insurance: How Does Balance Protection Work?

by Adeola Adegoke
November 25, 2022
0

There is a form of insurance for everything. Just as you can buy insurance on your life, mortgage, belongings, and car, you can also purchase insurance for your credit cards....

Read more

What Is Auto Insurance Canada and How Does It Work? (2022)

What Is Rental Insurance? Why Should You Get It in 2022?

Whole Life Insurance in Canada: Get The Best Rates & Quotes

Understanding Group Life Insurance: Benefit & Downsides 2022

Next Post
life insurance for pre-existing conditions

Can I Buy Life Insurance For Pre-existing Conditions in 2022

how to find a lost life insurance policy

How To Find A Lost Life Insurance Policy in 2022

what is cash value life insurance

What Is Cash Value Life Insurance: Cash Value Explained 2022

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

Recommended

Cochrane Real Estate Review

Cochrane Real Estate Review For 2022

February 19, 2022
How to Start an Electrical Business

How to Start an Electrical Business

November 26, 2022
Klarna Canada Review

Best Klarna Canada Review 2022: Buy-Now-Pay-Later in Canada

November 26, 2022
How to Start a Woodworking Business

How to Start a Woodworking Business: 10 Practical Steps to Get Started

November 26, 2022

Popular Story

  • Websites Where Men Give You Money

    12 Legit Websites Where Men Give You Money in 2022

    9735 shares
    Share 3894 Tweet 2434
  • 20 Best Performing Mutual Funds in Canada for 2022 [Updated]

    5528 shares
    Share 2211 Tweet 1382
  • 12 Top Safe Investments With High Returns in Canada for 2022

    4259 shares
    Share 1704 Tweet 1065
  • Best RESP Canada: 10 High-Performing RESP Providers of 2022

    3440 shares
    Share 1376 Tweet 860
  • What Is Canada PRO Deposit and How Do You Apply in 2023?

    2808 shares
    Share 1123 Tweet 702
  • Is World Financial Group (WFG) a Scam? An Unbiased Review 2022

    2572 shares
    Share 1029 Tweet 643
  • E-Transfer Payday Loans Canada 24/7

    2303 shares
    Share 921 Tweet 576
  • GST Payment Dates for 2023: Eligibility & How to Apply

    2249 shares
    Share 900 Tweet 562
  • 10 Best Investment in Canada for 2022: ETF’s, Stocks, Real Estate & More

    2100 shares
    Share 840 Tweet 525
  • How Much Does it Cost to Have a Baby & Raise a Child in Canada?

    2080 shares
    Share 832 Tweet 520
Facebook Twitter Instagram

Money Reverie

Adeola Adegoke

Owner/Founder

Money Reverie is a top personal finance and finance blog in Canada. We share finance tips & self-help to live a rewarding life.

Categories

  • Benefits
  • Business
  • Credit Cards
  • Cryptocurrency
  • Debt Management
  • Insurance
  • Investing
  • Mortgages
  • News
  • Personal Finance
  • Product Reviews
  • Retirement & Estate Planning
  • Reviews
  • Tax
  • Uncategorized

© 2021 Money Reverie

No Result
View All Result
  • Contacts
  • Contributors
  • Disclaimer
  • Newsletter
  • Personal Finance & Debt Management Blog in Canada – Money Reverie
  • Privacy Policy
  • Super Visa Insurance Quote
  • Terms and Conditions

© 2021 Money Reverie

Need Help With Anything Finance?

Enter your email address to get valuable personal finance & small business tips from top experts delivered to your inbox weekly.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.