As a resident of Ontario, you may be wondering if life insurance is the right investment for you. If you’ve been thinking about the future and how you can protect your family when you’re gone, life insurance can play an essential role in your financial planning. While there are many misconceptions about life insurance, many facts can make life insurance a worthwhile investment. With that said, here are five things you should know about life insurance:
1. Young people should invest in life insurance
Although life insurance seems like a top priority for older individuals, young people can also benefit from obtaining a life insurance policy. While you’re young, you can typically secure less expensive life insurance rates because you’re in better health. Because life insurance providers consider your current health and health history when determining your premiums, you can lock in your lower premiums at a younger age and enjoy that price protection throughout your lifetime by purchasing a permanent life insurance policy.
Your age is one of the most fundamental factors influencing your life insurance premium rate. The premium amount increases for every year of age and increases by a higher percentage as you grow older. For example, Premiums might increase by 5% between the ages of 29 and 30 but increase by 8% between 34 and 35. Many insurance companies work by age brackets, so it’s always a good idea to lock in your rates before reaching the next bracket. Because the premium is established when you buy the policy, it will remain the same every year throughout your policy’s term.
Another thing to remember is that life insurance providers look at your family’s health since some medical issues are hereditary. By securing life insurance while you are younger, you reduce the chances that someone else in your family receives a chronic medical diagnosis that can affect your potential to be eligible for affordable coverage.
2. Get coverage even with medical issues
If you have a chronic health condition, you may think that it is not possible to acquire life insurance coverage. While traditional life insurance may be challenging to secure, “no-medical” life insurance is an option for those living with chronic health conditions. While no-medical life insurance policies differ, it is possible to get coverage even if you have been diagnosed with cancer, heart disease or diabetes. Life insurance isn’t only for people with perfect health. If you have a chronic medical issue, you may be keen to have protection for your loved ones should you pass away. Knowing that you may be eligible for no-medical life insurance can give you peace of mind.
3. Life insurance can be affordable
Many people assume that life insurance is expensive, and the cost of premiums over your lifetime will add up. Many more people overestimate how much life insurance will cost. While the price of life insurance policies varies, you should know that affordable coverage is available.
You have the option of choosing between a permanent life insurance policy, which allows you to lock in your premiums for a lifetime or term life insurance which can give you the coverage you need during critical stages of your life. When you no longer need the protection, you can simply let your policy expire.
While you are in good health, life insurance is also likely to be more affordable because your mortality rate decreases. If you are young and have a clean bill of health, you’re sure to find more affordable options.
Another important factor is your life insurance provider. Many providers offer various life insurance options, including coverage for those with medical issues, participating in extreme sports, and more.
4. Consider if your group benefits are enough
If your employer offers group benefits, you may believe you have enough life insurance coverage to protect your loved ones. However, it’s essential to take a hard look at your employer’s group benefits since they may not cover all your needs. Typically, the best way to ensure you have appropriate coverage is to add a personal life insurance policy to the mix to supplement your employer’s group benefits. This way, you have peace of mind knowing that the death benefit of both of these plans will cover large debts such as the mortgage on your family’s home.
5. A life insurance broker can help
Working with a life insurance broker can make all the difference if you’re considering purchasing life insurance. Finding the right life insurance can be difficult, especially with many options available. While you can do your own research, you may not know what will provide you and your loved ones with the appropriate financial security. You don’t want your loved ones to foot the bill when it comes to your funeral and final expenses or your debts like a hefty mortgage. That’s where enlisting the services of an insurance broker can be helpful; they can help you navigate the insurance buying process by shopping around on your behalf. They’ll present you with a variety of options that fit your needs and budget, making it easy to find the right plan for your needs.
Is life insurance right for you?
If you want to find out if life insurance is right for you, reach out to the experts. The Keller & Associates Insurance Brokers team has the expertise and experience to help you find the right coverage to protect your loved ones.