Think back to your younger years; you will find a memory of being told that certain things are just the sensible “adult” thing to do. We should get a mortgage, settle down, have kids, save for retirement, and get a life insurance policy… but what does life insurance cover? It’s far more flexible than you think! You can personalize your coverage to your individual needs; if you’re not sure how you could use it, here are some ideas to help you plan for your future, whatever your age.
Life insurance is a scalable product. The needs of a 25-year-old with no dependents aren’t going to resemble those of a 72-year-old great-grandparent. Your coverage will reflect that. Every family is different, so you assess your needs and remember to update your policy as life events occur. We recommend reviewing your policy once a year to keep it up to date. You will keep costs lower and get the coverage you need today, not when you signed the dotted line.
Mortgage
Most life insurance coverage includes the outstanding sum on a mortgage. Your mortgage is likely the largest expense of your lifetime and one that we don’t want to hand off to our loved ones when we’re gone. Cover your mortgage costs and your family can sleep easy knowing their home will remain theirs, always.
Funeral Costs
It’s not something we like to think about, especially if you’re young and in good health, but arranging your send-off can be expensive and comes at a time when people are emotionally fragile and financially unstable. Your family will want to give you the best funeral possible, which can lead them to financial hardship. Your funeral expenses are a small amount to cover with monthly life insurance but a potential burden if paid in a lump sum.
Tuition costs
Whether you are a parent to a young child or a devoted grandparent, we know you want the best for your kids. College and university costs are skyrocketing and place the burden of crippling debt on our young people who are just starting out in life. Tuition costs are a common feature of life insurance plans and can cover private schooling or further education.
Debts
There is no soft-soaping it; many Canadians carry debt in the form of unsecured loans or credit cards. The average debt figures in Canada have been climbing even pre-pandemic with debt servicing becoming a common monthly expense. You may have accrued debt during college, a period of unemployment, the rising cost of living, or even unexpected expenses when a loved one passed. Break the chain by ensuring your life insurance will wipe out your debts, leaving your family with one worry.
Income Replacement
Most couples today bring in two incomes, but the reality is that most households require both to maintain a good standard of living. Losing a source of income can be a tumultuous time and puts extreme stress on your partner. Life insurance can cover the loss of income for a period, giving the remaining time to grieve and adapt before being concerned about the bills.
Do I need life insurance at a young age?
If you are young and healthy, you may feel you don’t require life insurance, but you are in a prime position to invest. You may be about to embark on a university degree, in which case, you will almost certainly leave in debt. You are also likely to buy a home, if not now, then in the future. You may find it harder to find stable employment than in previous generations, leaving you heavily reliant on credit cards.
By locking in a life insurance policy at a young age, you are capitalizing on your youth and health to keep your premiums low. You may think that if you’re single, there is simply no need, but debts and funeral expenses can fall on your parents too.
Give the gift of protection
Protect your loved ones, whatever your age and circumstance with a life insurance policy that fits your needs. What does life insurance cover? The short answer is whatever you need. To find out how much coverage you will need, download our free life insurance worksheet and get in touch to discuss your results.
Blue Country Insurance – all your protection under one roof… because your health and life matters.
