Everything You Need to Know About Life Insurance in Your 20’s and 30’s
by adminAre you recently married? Have you bought your first home? Just had your first child? Graduated university?
Life is a collection of milestones, little moments that signal you’ve ascended to a new level of adulthood. Our 20’s and 30’s are spent creating our lives, and when everything is happening all at once, the last thing you want to think about is the day that it will end.
However, like it or not, we do not have complete control over what happens to us, and without a life insurance policy, your loved ones might be left with a lot to deal with long after you’re gone. That’s why it’s best to be prepared.
Purchasing life insurance when we least expect we’ll need it is the best way to be prepared for whatever comes. By contacting an insurance broker in Vancouver today, you can rest easy knowing that your loved ones will be well taken care of and provided for in any event.
What is Life Insurance, and What Would It Pay For?
Essentially, life insurance is a buffer that replaces your income after you’re gone. It is paid out to your loved ones in the event of your death for them to spend on whatever they need. Life insurance payouts are tax-free and can be used to cover any outstanding balances on credit cards, to pay off a mortgage, a student loan, and cover funeral expenses.
Life insurance payouts are tax free and can help your family make ends meet while they rebuild, covering things like groceries, gas, car payments, and other living expenses. An insurance policy can even help pay for your kids’ post-secondary education.
Without a life insurance policy, your family may be saddled with any debt that you leave behind.
How Much Life Insurance Do I Need?
This completely depends on your circumstances, but life insurance is meant to keep your family maintaining the same quality of life without your income. It’s typically agreed upon that a life insurance payout should be 7-10 times your annual income.
Can Life Insurance Policies Be Changed?
Term life insurance is a policy that can be purchased for a fixed period of time, around 15-30 years. After the policy is up, you can meet with your insurance broker to find a new plan that’s right for whatever point you’re at in life.
A term life insurance policy is a great option because it gives you the opportunity to re-evaluate what kind of coverage you need. Life is constantly changing; your life insurance policy should change with it.
If a fixed term life insurance policy is something you’re considering, click here to speak to an insurance broker in Vancouver.
I’m Insured Through My Employer, Is That Good Enough?
It might be. Again, it depends on what kind of life you want to leave behind for your family.
Make sure you understand your employer’s insurance plan, and it’s a good idea to max out the policy that’s offered. Even with employee benefits, you may want to consider purchasing life insurance or a fixed-term life insurance policy.
Click here to compare policies and get a quote from an insurance broker in Vancouver.
Who Doesn’t Need Life Insurance?
If you are single, employed, own your home, have no dependents, and enough assets to cover any debt, a comprehensive life insurance policy might not be something you feel you need right now. It’s important to remember, however, that funeral arrangements can end up costing thousands, and those expenses will fall to your loved ones without an active policy in place.
It’s best to speak to an insurance broker in Vancouver and learn about your options before deciding to forgo it all together.