Why get life insurance in your 20s or 30s?

1. Life insurance offers financial protection for your loved ones. 

It can help protect your loved ones now and provide the security you need to reach your financial goals. It’s particularly useful if you’re looking to:

• buy a home,
• get married, or
• grow your family.

These are important milestones that bring added financial responsibilities, and life insurance can help you meet those responsibilities. How? It can leave your family or beneficiaries with a tax-free death benefit.

What’s a death benefit? It’s a set amount of money that’s given to beneficiaries (your loved ones or anyone you choose) when you (the insured person) die. The death benefit may help cover a mortgage and living expenses and can help your family remain financially secure.

2. It’s cheaper.

The younger and healthier you are, the more likely you’ll have lower premiums. (Premiums are your monthly or annual payments.)

3. It’s easier to get approved.

Insurance companies are more likely to approve your life insurance application if you’re healthy. So, applying for life insurance while you’re young and in good health makes it much easier to get coverage. Waiting until later in life may limit your options.

What type of life insurance do you need in your 20s and 30s?

Where can you start when you’re young and healthy? Term life insurance. Term provides coverage over a set number of years. This could mean coverage for 10, 20 or 30 years.

Here’s what term life insurance includes:

• Flexibility to add more coverage to your plan later.  A good way to ensure that your life insurance grows with your changing needs is to have flexible life insurance coverage. It could allow you to increase your coverage based on certain life events. For example, in the future, you may have more than one child to take care of. In that case, you may need more coverage to help protect your growing family.
• The option to change to a permanent plan. Permanent life insurance gives you guaranteed protection for life.

Curious to know more? Learn about the difference between term and permanent life insurance.

How to find out what's right for you?

Finding the right coverage for your financial situation is just as important as getting coverage. An advisor can help. In the end, they’ll help you feel more secure about your financial future. 

A Prospr advisor can: 

• talk you through what you need now,
• explore what you may need in the future, and
• help you juggle competing priorities. 

Ready to start a conversation? Connect with us today!

This article is meant to only provide general information. Sun Life Assurance Company of Canada does not provide legal, accounting, taxation, or other professional advice. Please seek advice from a qualified professional, including a thorough examination of your specific legal, accounting and tax situation.