Starting a family?

There are certain events that happen in life that have a way of changing everything. Going to university or college, getting married and buying a home are some of those events. Starting a family is one of the biggest. It makes you start thinking about the future – and not just yours. Because there’s another little soul in this world who totally depends on you, and that is one life-changing realization.

Thinking about the long-term financial security of their family is one of the main reasons Canadians purchase term life insurance. Starting a family and buying a home are tied as #1 reasons that 33% of Canadians buy it. And 77% of Canadians who purchase life insurance have children 18 or under.¹

Raising children is rewarding but costs a lot of money over time. One third of households would have trouble paying the bills if a primary earner passed away.² If you were no longer there, your family would have significant costs like these to cover:

• the cost of raising a child to the age of 18 in Canada is $270,000³
• the cost of one year of university education in Canada is $19,500⁴

Term life insurance can provide financial security and peace of mind for you and your family. The money from it can be used to help replace lost income, maintain your family’s lifestyle, allow them to continue living in the family home and cover every day and unexpected bills and expenses after you’re gone.

47% of Canadians have life insurance coverage through work.¹ But group plans are usually based on a multiple like 1x or 2x your salary. Experts say you need closer to 7x to 10x your salary in life insurance to replace lost income.⁵ Buying individual life insurance to help top up and fill the gap left by employer plans can be a smart way to strengthen your growing family’s future financial security.

The earlier you get term life insurance, the better. When you’re younger and in good health, you get access to the best rates, which can help save you money. 5- or 10-year term life insurance plans can offer you security and rates that are locked in and will not increase for the duration of the plan.

So, if it’s time to start a family, it’s time to start thinking about life insurance. One day, down the road, the decision you made to buy it today could make all the difference in the world, to the people who are your world.

(Sources)

¹ Mintel Life Insurance Canada, 2020

² LIMRA, Canadian Life Insurance Ownership Study — Household Trends Report (2019)

³ Financialpost.com, ‘What Does It Cost to Raise a Child in Canada’, May 19, 2020

⁴ Maclean’s, ‘The cost of a Canadian university education in six charts’, April 1, 2018

⁵ CNN Money, ‘How big should my life insurance policy be?’, 2018