Summary: Life Insurance for Canadians Simplified
There is a lot of advice out there that recommends life insurance for Canadians when they’re younger because the premiums are cheaper, but the issue with that is that you may be paying for coverage when you really don’t need it. Life insurance premiums don’t change that much when you’re young. The incremental amount of money you save by starting a plan a few years earlier doesn’t make that big of an impact.
You’d also have your term ending a few years earlier than if you had just gotten coverage for when you really needed it. Here is an example:
- $500k Term 20 Policy for a 30-year-old non-smoking female = $21.39/month
- $500k Term 20 Policy for a 35-year-old non-smoking female = $23.54/month
- Net savings = $516 (over the 20 year period, if you started your policy at age 30 instead of 35)
As you can see, it doesn’t save you money to start a plan earlier, so get insurance because you need it, not to simply save money.
Insurance: Boring Today, Helpful Tomorrow
You can spend your money on a lot of exciting things (investing in NFTs, buying real estate, collecting rare Pokemon cards, collecting sports cards, etc.) but without your income, you and your family can’t enjoy the things you love. It’s unlikely that you’ll ever pass away prematurely but if you did, can your family continue their standard of living without making drastic sacrifices?
If you were to pass away tomorrow, is there anyone that would be stuck with your debt or struggle without your income? If the answer is yes to one of both of these questions, it’s time to look into life insurance.
Having a policy is essential if you have a partner, young children, ageing parents who depend on you for financial support, large debts such as mortgage, credit card, line of credit or a business loan. Understanding the right amount of coverage can be difficult but there are some tools out there that can help you figure out what’s best for you.
Before deciding on an insurance policy that might be right for you, be sure to:
- Check to see what your workplace offers in terms of benefits. If you’re fortunate to have coverage with your employer then it’s worthwhile to understand how it works and what you’re entitled to. Sometimes plans include optional benefits that can be tacked on to your base coverage. That being said, also look into coverage elsewhere. Some “exclusive” member benefits aren’t as great as you would think and sometimes you can actually get better coverage elsewhere.
- Talk to a professional about it! If you’re not sure where to start, then start talking to people and doing research. There’s plenty of resources online and lots of people get coverage. Make sure to speak to a few different brokers if you’re looking for the best possible advice. Shameless plug here, PolicyMe advisors are paid on a salaried basis. We’re not incentivized to sell you a policy. If you need to verify some advice you’ve been given, have it double-checked with one of our experts!
Who is PolicyMe?
PolicyMe is Canada’s leading online life insurance company, giving families a straightforward way to buy term life insurance in minutes and at the most affordable price. Our mission is to put people first, protecting them with the honest and uncomplicated life insurance they deserve.
Here is how PolicyMe has done this:
- They’ve simplified all the unnecessary bells and whistles in the traditional life insurance process, resulting in a fully underwritten term life policy that’s simple, affordable, and 100% online.
- Their term life policy has the most competitive pricing in Canada.
- The application for their term life insurance product takes just 15 minutes to complete. When you apply with PolicyMe, most applicants receive a decision instantly (instead of weeks). Most don’t require a medical exam either!
PolicyMe offers life insurance for Canadians in coverage amounts ranging from $100,000 to $5,000,000 per year, with term lengths ranging from 10, 15, 20, 25 and 30 years. PolicyMe is available across Canada (except Quebec, New Brunswick and Newfoundland), and insures Canadians from ages 18-75.
What makes PolicyMe Different from its Competitors?
- Uncomplicated Process: PolicyMe understands that time is a precious resource – with PolicyMe, there is no more paperwork, no fancy jargon, no meetings. You can apply online and find out if you’re approved in minutes, not weeks. Another nice thing is that most of their customers do not require a medical exam or nurse visit!
- Most Affordable Rates in Canada: PolicyMe cuts out the unnecessary steps and expenses in an effort to offer the most affordable product in Canada, with the same quality of coverage. On average, PolicyMe rates can be roughly 10% lower than other insurers in Canada.
- Honest Advice: PolicyMe knows that buying life insurance can be confusing, intimidating and misleading for people. They believe in empowering young professionals with dependable knowledge and recommendations that prioritize your best-interests, so that you can feel equipped and confident that you’re making the right financial decisions for you and your family.
In addition, here are some other useful highlights that you’ll find with PolicyMe:
- The PolicyMe Recommendation Tool will assess your unique situation and even tell you if you don’t need life insurance yet!
- The PolicyMe life insurance advisors are non-commissioned, so you’ll get advice that you can trust.
To learn more about PolicyMe and how it can benefit young professionals, click here.