Getting a quality life insurance policy isn’t just for those with the responsibility of supporting a family, anyone can benefit from life insurance. The common misconception is that people with families and dependents are the only targets for life insurance companies, but this isn’t true.
There are a number of great reasons why you should have a life insurance plan in place while you are young and single. You may not need the exact amount and types of coverage that someone with a family has, but there are combinations that work perfectly for singles and their lifestyles.
This week, our focus is on the top reasons why a single 20 or 30 something can find value in a life insurance plan. Also, we touch on how life insurance can prepare you for what your future may have in store.
Those Pesky Student Loans
In Canada, each province and territory have loans that students can get through the federal government. These are beneficial not only because they allow students to pay for their education, but they also are dissolved should you die before the debt is paid off. But if you have any personal school loans through a number of different lenders, this will not be the case.
Using private loans can leave your surviving relatives, specifically those that have co-signed for the loan, at risk of being left with the debt if you die. With post-secondary education reaching costs as high as $80,000+, the debt your family will be left with can be a huge burden.
You can ensure this doesn’t happen by getting properly insured. A permanent or term plan’s death benefit can be used to cover the costs of your remaining debt and leave your loved ones free from unwanted costs during a bleak time.
Since we’re on the topic, your funeral will have to be paid for by someone. Funerals aren’t the most economical expense with costs running as high as $5,000 to $9,000+. Nobody wants to discuss their own demise, but it will happen and as a young single person, your parents or even some older siblings will be responsible for the costs involved. Even the smallest and most basic life plan can provide your family a safety net against the costs associated with your death.
The Possibility of Children
The excuse of not wanting to have children is not a very strong one against the decision to purchase life insurance. Unless you’re taking every perceivable measure to avoid having a child, the likelihood is you may change your mind. According to MoneySense, a Canadian finance website and magazine, the average cost of raising a child to age 18 is just over the quarter-million mark. Leaving all of that behind for your future husband or wife is not ideal. Your family will already be without you, adding on the costs of a child on the single surviving parent just makes the situation worse.
We strongly recommend getting a life insurance plan now if having children is something you definitely want to pursue in the near future. Planning to start a family begins with obtaining the best coverage and that is easier when you’re young and on your own.
You’re Young & Healthy, What’re You Waiting for?
You’ll never be younger than you are right now and if you are single, you haven’t yet run into the majority of life’s responsibilities. We can’t stress enough how much of a benefit it is to get a plan before you take on more serious obligations and while you are young. Shop around and talk to your local brokerage because you have nothing to lose when you lock in a premium now at your young age.
Don’t put off getting a plan until marriage and after your children are born because you’re just going to make it more difficult on yourself. Waiting comes with the risk of developing an illness or getting injured, making the application more strenuous and costly. Lock in a great rate now and guarantee your insurability later.
As an example, we’ll look at a term plan for a 23-year-old. If a man is looking for $500,000 in coverage for 20 years, he’s only going to pay $31 a month. A woman of the same age who is looking for the same coverage will pay only $20.70 a month. Even older singles approaching 30 would only have to pay slightly higher than these prices for a generous amount of coverage.
At Instant Life Insurance, we want to help you find some peace of mind when it comes to life insurance needs. We work with over 20 different providers, all of which offer great plans that we can help you obtain. We will work with you and guide you to getting the plan that best fits your needs and budget. Let us start you off on the right foot and get you the life insurance plan that will cover you and your future plans.