Cost or Quality: The Cost of Life Insurance & Life Insurance Benefits

A common misconception with life insurance – and the reason that so many fail to secure it at the right time – is that they do not see adding the cost of insurance to their budget as a must, unlike other insurance such as car insurance. This is especially true with younger consumers. The actual cost of life insurance is far cheaper than many believe – and when you factor in all of the benefits that different life insurance policies carry, these seriously outweigh the financial cost to be insured. So what is stopping some Canadians from seeking out their own life insurance? 

The most common myths – that insurance is too costly, that it isn’t necessary ‘right now,’ or that it is just a way for insurance companies to make money – often keep people from even looking into the life insurance benefits that will become necessary later in life. A recent Financial Post article confirms that these misconceptions exist – but that they shouldn’t, stating that all Canadians should have some form of life insurance to protect their future. 

The Financial Post article went on to say that it is especially important for younger Canadians to secure life insurance – for more than one reason: “Not only does insurance give people with young families piece of mind, but the reality is, teenagers, and even children, should have policies to protect their parents from financial burden too.” 

Not only is it smart to get that protection in place for the sole benefit of financial security for loved ones, but the younger the person is when purchasing the policy, the cheaper the premiums. And depending on the type of insurance, these premiums may remain fixed for the entire duration that the policy is in place. 

Another big reason that people don’t seek out their own life insurance is because they have a false sense of security that they are covered through their employer’s group policy. The reason that we say false sense of security is because most life insurance offered through company group policies will cease when you stop working for the company. Insurance is more expensive as we age so if you lose your job you will be facing higher premiums later when seeking out your own life insurance coverage.

So what is stopping you? Is price the determining factor when purchasing life insurance? It shouldn’t be. The real cost of life insurance should not actually be determined until you speak with an insurance advisor. By doing this, you are able to ask the relevant questions and work with the advisor to determine the best policy for you. And when you are given the cost of the monthly premium you need to consider what the end result of the policy brings. Quality needs to be measured, and if your insurance advisor has developed the right policy for you, the cost of life insurance won’t seem nearly as high as you originally thought.

No matter what age you are (as the Post article discussed), having some kind of life insurance is a very important part of your financial planning for the future – whatever your goals may be.

For more information about the cost of life insurance and life insurance benefits, please contact Independent Financial Concepts Group today at 416-849-1653.