You know you are adulting when you buy your first insurance policy for your car or apartment. It is a whole new world learning about insurance and how to protect your hard-earned things from loss or theft. Your paycheck must stretch to cover all your new expenses, and it is hard to learn to budget for everything – but insurance is a critical expense now that you are on your own.
When you buy your first auto or tenant insurance policy, you might also be asked to consider life insurance. You probably think you are too young to worry about life insurance, and you have no kids or dependents anyway, so why is it important to think about life insurance when you are just starting out?
Maybe the best reason to consider buying life insurance along with your other new insurance policies is the cost – when you are young and healthy, life insurance companies find you to be a good risk, so you will pay less for your coverage. And getting approved early before you encounter any health conditions generally means a cheaper rate, too.
Read on to learn more about getting life insurance along with your other first-time insurance policies, then contact us at Hometown Life Insurance for more information on purchasing your first life insurance policy!
Consider Buying Life Insurance Along With Auto or Tenant Insurance
Worrying about retirement, financial planning, and your own mortality is heavy stuff in your twenties, but taking some time now to think about your future can set you up for a positive financial plan when you are older. Buying life insurance along with your first-time insurance policies for your car, home, or apartment makes sense for lots of twenty-something Canadians.
Likely To Secure Cheaper Life Insurance When You Are Young: Insurance companies like to take on smart risks, and as a young and healthy person, you are one of the smartest risks they can take. This pays off for you with cheaper premiums whether you purchase term or whole life insurance.
Likely To Get Accepted Easily for Coverage: When you are older, you are more likely to be diagnosed with a chronic or serious medical condition or to take maintenance prescription medications for an ongoing illness. These are all things your insurance company reviews – and may charge more for because they can indicate a higher mortality risk. Buying life insurance before any long-term conditions catch up to you means you are more likely to get accepted for coverage more easily. Some insurers do not require medical exams, but they do still ask medical questions and review your records.
Some Insurers Discount You for Having Multiple Policies: Ask your car insurance company if they give a discount if you bundle your auto, home or tenants, and life insurance policy with them. Many insurance companies sell multiple products so you could potentially insure your car, home, and life with the same carrier – if so, they may give you a discount for having several different insurance policies with them. As you progress in life and find yourself needing more coverage as your situation changes – say if you decide to get married or buy a boat or vacation cottage – you can grow with your insurance company and purchase additional policies to bundle together.
Guaranteed Coverage Even if Your Health Changes: If you purchase your life insurance policy now, you cannot be canceled as long as you continue paying your premiums. This means if your health should change later in life, your insurance will continue. Think about it – if you do not buy life insurance when you are healthy, you may not be able to buy it after being diagnosed with a health condition. Or, if you can buy it later in life after an adverse health incident, you will pay much more than you would if you purchased life insurance when you were young and healthy.
Life Insurance Does More Than Support Dependents
You may be thinking that since you are single, life insurance does not make sense. If you died tomorrow, you would not be leaving a partner and young children without your income and support. But life insurance can do much more than just support dependents.
Life Insurance Can Pay Off Your Debt: Do you have credit card debt or other loans? Have you purchased a condo or house you have financed? Your life insurance can take care of these debts, so your estate can be used by your beneficiary in other ways.
Final Expenses Happen to Everyone: Even if you died debt-free, your parents or friends would have to pay for your final expenses. Burials, funerals, and cremations can be expensive, and having life insurance means you have considered these expenses and handled them for your family.
Life Insurance Can Cover Medical Expenses: If you pass after an illness, your health insurance could leave gaps in your medical costs. Even though the government health insurance covers some things, a traumatic injury or illness could create expenses not covered by your public or private health insurance. This is where life insurance benefits are handy.
Just like your tenant insurance, life insurance is not a mandatory coverage – but it can be an essential part of your financial security and overall plan. Do not ignore this helpful coverage just because you are young. There are plenty of benefits to life insurance for every Canadian.
Final Thoughts
Life insurance is not the most fun topic, especially when you are in your twenties and not thinking about settling down anytime soon. But your insurance needs continue to evolve as you age, so considering life insurance while you are young and healthy can be a smart investment move. We can help you find the right life insurance policy while in your twenties.
Life insurance can be used for many things, not just supporting a family. So if you are single, you still can benefit from purchasing a life insurance policy. Consider your debt and final expenses that you might leave to your parents or siblings, or just think about leaving a little legacy for your friends and family. Life insurance can help accomplish these goals.
How do I Learn More?
To learn more about life insurance as a first-time insurance buyer, contact the experts at Hometown Life Insurance. Our licensed experts will be happy to answer any questions you have.
External Links:
- https://www.canada.ca/en/financial-consumer-agency/services/insurance/life.html
- https://www.canada.ca/en/immigration-refugees-citizenship/services/new-immigrants/new-life-canada/health-care-card.html
- https://toronto.ctvnews.ca/these-are-the-pros-and-cons-of-paying-for-tenant-insurance-1.5433537
