3 Reasons to Invest in Life Insurance While You’re Young

3 Reasons to Invest in Life Insurance While You’re Young Woman

Common Perspective: “I’m young and healthy – so why should I sweat over not having any life insurance. After all, who would I leave it too anyway?”

The truth is there are many benefits to having life insurance while you’re young. Here are three:

1) Less Expensive

Generally, the younger you are, the cheaper life insurance is. If you invest now while you’re young and healthy, it is the most cost-effective life insurance you’ll ever have. This will pay off enormously if your situation suddenly changes for the worse. During this time, a common practise is to make your beneficiary your parents. They have likely spent hundreds of thousands on you over the years. You can always change the beneficiary when you get a significant other.

2) Sets You Up for Later

One of the primary reasons for having life insurance when you are younger is risk. Not only are young people healthier, but they also cannot afford any dangerous toys yet. If you take up any hazardous sports like scuba diving, back country skiing, snowboarding, or rock climbing in the future, you will pay hundreds of dollars extra or have an exclusion for your risky hobby or profession. We see this all the time, and it costs so little to tie up now.

A good idea is to purchase a plan at the age of 65. It would only cost $54 per month, but many get a discount due to healthy lifestyles which reduce the cost to only $43 per month. This means that you will have a base of $500,000 of life insurance to age 65 and the price is guaranteed not to change. You will not have to worry about any change in your health or future risky hobbies or jobs you might undertake.

3) Combine With Critical Illness Insurance

The average age of claims for critical illness is about 50. This means that it is a good idea to have it in place early. The cost for $100,000 of a ten-year term is about $25 per month with a 20-year term increasing to only $30 per month. You can lock it in to age 65 for just over $50 per month.

I have never talked to a person in their forties who regretted getting life insurance when they were younger. I have, however, spoken with many people who wish they had and are now struggling to qualify for affordable life insurance due to a medical issue, hobby, or occupation.

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© 2003-2024 INSURANCEDIRECTCANADA.com, an Internet brand and property of I.D.C. Insurance Direct Canada Inc. All rights reserved. Last updated March 2022.

All product names, trademarks, and trade names are the property of their respective owners. The Insurance Council (BC, AB, SK, MB), Financial Services Commission (ON), Chambre de la Sécurité Financière (QC), The Superintendent of Insurance (NB, NL, PE, NS) are the provincial and federal authorities that regulate, supervise and enforce standards for life insurance professionals. IDC member websites include: Life Insurance Newspaper, Employee Benefits Newspaper

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