Whether you are in your 20s, 30s, or 50s, two things are certain- you already have people you love in your life, and you cannot predict the future.
You cannot tell exactly when your life will end, but you have the opportunity to prepare for the possibility and help protect those you love financially. This is where life insurance comes in.
Life insurance gives you peace of mind knowing that the family and loved ones you will leave behind can have financial support if you die. Life insurance mutes every financial hardship that may arise from your absence and lack of income.
If you are asking, what is the best age to get life insurance? The short answer is right now! In a strict sense, the younger you are, the better for you.
This blog post will enlighten you on the best age to get life insurance in Canada.
What Is The Best Age To Get Life Insurance In Canada?
When it comes to the best timing to get life insurance, the younger you are, the better. You can qualify for lower premiums at a younger age, maybe 20s or 30s.
The sooner you buy your life insurance. The cheaper your premiums will be. Premiums become expensive with each passing year.
As you age, you might develop health conditions that make getting a life insurance policy more expensive. You might even be unqualified to purchase some plans.
Buying life insurance at a young age is like saving for retirement. Missing out on life insurance has a significant economic impact on your future. The sooner you purchase it, the better.
Purchasing life insurance at old age can be costly. For example, the average premium for a 20-year level term life insurance policy with a $250,000 coverage amount is about $214 yearly for a healthy 30-year-old male.
However, a 40-year-old male will pay about $486 for the same policy. The cost of delaying the purchase for ten years is about $2,720 for the same policy.
Should I Get Life Insurance In My 20s?
In your 20s, you are still young and healthy. However, there is the possibility that you already have serious financial responsibilities.
You might not have dependents, but you may have student loans to pay off, some credit card debt, or you are already thinking of getting married.
Suppose you are in your 20s and currently in any of these situations. In that case, it would be best if you had coverage that would help the ones you love in the event of your death.
Did your parent, sibling, or friend co-sign your loans or credit cards? In the event of your death, it will be on them to pay off.
With life insurance in place, your family can use the death benefit to cover any expenses they relied on you to pay.
It’s best to consider life insurance early; you do not want to leave your loved ones in a financially challenging situation.
Benefits of Getting Life Insurance at a Young Age
Investing in a life insurance policy at a young age is a savvy financial move. As a young Canadian, life insurance may not be at the top of your priority list.
At this age, you are still healthy, not married, and have no children who depend on you. You may even be on a tight budget and feel premiums are unnecessary expenses at this point in your life.
However, here are a few reasons you should consider buying life insurance at a young age.
Lock-in great rates
Your age and health status are significant factors in buying life insurance. When you purchase life insurance at a young age, you lock in lower premiums and reduce the total amount you would spend on the policy.
Unless you change the coverage amount, your premiums will remain the same throughout your policy. Getting insured before developing any health conditions lets you lock in very affordable premiums.
Protect your loved ones
If you have student loans, credit card debts, or mortgages to pay off, life insurance can protect your family and loan co-signers from having to pay off your debts alone.
Life insurance can protect your family from paying the mortgage themselves or having to forfeit the home if you have a mortgage.
Build cash value
If you buy a permanent life insurance policy, you can build cash value that you can rely on. As your life insurance policy’s cash value grows, you can borrow against it or withdraw from it.
Buying life insurance at a young age gives you enough time to grow your cash value.
Provide protection for the future
Though you may not have children or dependents now, you will have them in the future. Buying life insurance now means you are protecting your children when they come.
You can put protection in place for your children, spouse, or aging parents who rely on your income. The longer you wait to get the insurance policy, the more difficult and expensive it will be to get coverage.
What Type of Life Insurance Should You Get at a Young Age?
As you age, your financial situation will likely change. You will have children to look after, a mortgage on your house, or added living expenses.
Buying life insurance at a young age is a smart move. But what type of life insurance do you need to consider at your young age?
It is better to start your life insurance journey with term life insurance. Term life insurance will provide you temporary coverage and can be renewable.
The policy can last between 10 and 20 years and be renewed afterward. Term life insurance is much more affordable than other insurance types. For Canadians who are just starting, this is a good choice.
They can get an extensive coverage amount at the lowest price. After all, the younger you are, the lower your premiums will be.
Is It Too Late To Get Life Insurance?
Not everyone considers buying a life insurance policy in their 20s or 30s. Those who didn’t get coverage at a young age can still get life insurance coverage right away.
The longer you wait to get insured, the higher the premiums will go, and you may end up not getting a policy.
People are rarely too old for an insurance policy. Even if premiums are higher for the policy you can get, there is still a type of life insurance for everyone. You may even be relegated to a guaranteed issue policy that doesn’t require a medical exam. However, it may be costlier and provides less coverage than other life insurance policies.
If you are already old and don’t want to leave your loved ones financially unprotected, there is still hope for you. Quickly shop around for the best insurance company with the most comprehensive protection at affordable prices.
Read more about how to buy life insurance
Final Thoughts on What is The Best Age To Get Life Insurance
There is no need to wait to get life insurance. Waiting to get life insurance can negatively impact your attempt to purchase a policy.
The older you get, the more difficult and unlikely it would be to get life insurance. It is best to get life insurance at a young age.
You can lock in premiums, build cash value, and secure your family’s future at a young age.
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.
