We are told from a young age that certain things are just the sensible “adult” thing to do. We should get a mortgage, settle down and get life insurance… but what does life insurance cover? Your policy can be personalized to cover your individual needs but if you are drawing a blank, here are some ideas, whatever age you are.
Life insurance is a scalable product. The needs of a 25-year-old with no dependents are not likely to resemble the needs of a 72-year-old great grandparent. Every family is different, so you should make your policy reflect your needs, and remember to update it as life events occur.
Mortgage
Your mortgage is likely to be the largest expense of your lifetime and one that many don’t wish to hand off to their loved ones when they are gone. Cover your mortgage costs and your loved ones can sleep easy knowing their home will remain theirs should the worst happen.
Funeral Costs
It’s something no one likes to think about, especially at a young age, but arranging the send-off both you and your family want can be a large expense at a time when people are emotionally fragile and financially unstable. 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 can skyrocket and place the burden of debt on our young people as they 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 with debt servicing becoming a common monthly expense. You may have accrued debt during college, a period of unemployment or even through 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 less thing to worry about.
Income Replacement
Although many couples bring in two incomes, losing one of them can be a tumultuous time. 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, in fact, you are in a prime position. You may be about to embark on a university degree, in which case, you will almost certainly leave with 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 due to COVID, leaving you 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 to your parents too.
Give the gift of protection
Protect your loved ones, whatever you 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.
