Weâ€™re well into 2019 and New Yearâ€™s resolutions are probably being broken.
If getting life insurance was one of them, you might want to consider sticking to it â€“ the longer you put it off, the more it could cost you down the road.
â€śEven if the need isnâ€™t immediate, buying life insurance now is a smart decision: the younger and healthier you are, the less expensive life insurance will be,â€ť Michael Aziz of Canadian Protection Plan told Yahoo Finance Canada.
Unless youâ€™re a young person living a high-risk lifestyle filled with extreme sports, the premiums you pay will go up as you get older and health problems start to develop.
â€śThis, however, doesnâ€™t mean someone who isnâ€™t perfectly healthy canâ€™t or shouldnâ€™t buy life insurance,â€ť says Aziz.
Aziz says many first-time buyers overestimate the cost of life insurance. Thereâ€™s also the complexity and array of options for purchase. Many providers offer online tools to get a quote and even apply for life insurance, and sitting down with an insurance advisor can you help you navigate through the lingo and help you decide what you need.
â€śThis would include current and future financial obligations, such as mortgage payments, car loans, credit card, and other debt, education, income replacement,â€ť says Aziz.
â€śEven if you canâ€™t immediately afford to protect against all of this, having some protection is better than having none at all.â€ť
There are two options to consider: term life and permanent life insurance. Term life covers a limited term for a set monthly premium. Terms generally range between 10 and 30 years.
â€śTerm plans are often purchased by people who may be younger, are looking for the least expensive life insurance option, or want to protect a debt that has a similar term, such as a mortgage,â€ť says Aziz
Premiums for term life insurance are cheaper compared to whole life or permanent life insurance.
â€śPermanent life insurance, which is generally more expensive than term, is designed to provide protection for a lifetime as long as the premiums are paid, and often provides a safe and tax-advantaged investment component that could help in retirement,â€ť says Aziz.
Life insurance isnâ€™t just for people with spouses and children whoâ€™ll be left in the lurch if you die.
â€śFor those who have minimal family or other commitments, life insurance can be a way of leaving a legacy to grandchildren or community, through a charity or cause.â€ť