Buying Life Insurance in Ontario Under the Age of 40 – Is it Necessary?

When we are young, energetic and full of life the last thing we think about is death or buying life insurance. With so many things to plan for like purchasing a home and planning a family, it’s hard to think about planning to forecast death. It is not likely that you will die any time soon but it is important to start your life insurance planning now and there are many reasons why. 

First, life insurance premiums are lowest when you are youngest and healthiest. Purchasing life insurance when you are younger will save you 10’s of thousands of dollars in premiums over time. 

Time is not your friend. Each day that passes we risk changes in our health. This could range from significant health problems to non-visible disabilities. Your life insurance premiums take into consideration your health. If you have medical problems one of two things can happen: your premiums will be significantly higher or some causes of death may be disallowed from your policy. Because a life insurance policy is a contract, if you initiate the contract and rate of premium at a time when you are young and healthy, the insurance company cannot increase your premiums. 

Further to the above two points, many of us plan on starting a family in the future. This alone carries a landslide of new expenses to the household. Once you have children, you will also want to protect them. If you wait to start life insurance planning once you have children and it becomes more of a priority in your mind, the issue of the increased premiums you will pay because you waited, will become very real. 

When children enter the equation, there are many life insurance options in Ontario that can enable you to leverage your life insurance to build savings and plan for your children’s education. While term life insurance in Ontario carries no cash value, whole life insurance does. This means that the premiums you pay for insurance will not only protect your children but will also contribute to savings that can be used when your children are ready to go off to college or university. 

Whether it’s now or when you have children, you begin to build a life with your spouse; the life you build will generally rely on both of your incomes. This includes payments to debt and mortgage. If the unforeseeable happens and you passed unexpectedly, you want to ensure that you have made the necessary financial arrangements so that your spouse is not left with debt and mortgage payments while losing your income. 

At the end of the day the primary reason that it is crucial to think about buying life insurance in Ontario is cost. All of the examples outlined in this article lead to the same issue that if you wait, it could cost you big time. Time could be the difference between you paying less than $100 per/mo. for life insurance in Ontario and paying hundreds of dollars per/mo. for life insurance in Ontario. Over the course of years these amounts add up to 10’s of thousands of dollars that you wouldn’t have had to factor into your budget had you started planning when you were younger. 

For more information about buying life insurance in Ontario please visit www.wecoveryou.ca or call Independent Financial Concepts Group at 416-849-1653.