When Is The Best Time To Buy Life Insurance in Vancouver: Now!

When Is The Best Time To Buy Life Insurance in Vancouver
Article Overview

Have you been thinking about buying life insurance in Vancouver but aren’t sure when to get it? Let me tell you something: now is the greatest moment to acquire life insurance in Vancouver! In this article, we’ll explain why putting off obtaining life insurance can be a costly mistake, and why taking action now can provide you with much-needed peace of mind.

The earlier you get life insurance, the better and less expensive it will be

Here in Vancouver, where we are busy enjoying our lives thanks to our great outdoors and active culture, insurance is probably the last thing on your mind. Most people don’t want to talk about life insurance until they are “old”. In the traditional Canadian concept, people are reluctant to discuss this sensitive topic, which is also human nature. But that doesn’t mean you don’t need to prepare and plan ahead.

Life insurance is a very important part of any family’s financial planning, and the sooner you deploy it in your financial planning, the more protection and benefits you can get. On the contrary, if you buy it in the future, you will definitely have to pay more for the same amount of benefit. In this article, we’re going to share some insight on when is the best time to buy life insurance as a Vancouverite and why you need one.

When is the best time to buy life insurance In Vancouver?​

When talking about insurance with young people, most people feel that they are still young and have no need for insurance. Most feel that there is no need for them to spend a part of their funds on insurance when they are still young, and they would rather invest it or use it for other daily expenses. The shocking fact is that this notion is wrong!

Research has shown that the average age of claims in Canada for major diseases is 42 years old, which is the peak period of income and career, and it is also a high-pressure period of “the old and the young. This is where looking into critical illness insurance, because most people in Vancouver have less than 6 months of expenses saved up. If you weren’t able to work, programs we have like EI or WCB is not going to be enough.

In Canada, the average life expectancy is 84 years. Purchasing insurance at the age of 20 allows the insured to benefit from a 20-year extension in the protection term compared to purchasing insurance at the age of 40. More importantly, with the same amount of insurance, it is much cheaper to buy at the age of 20 than at the age of 40!

4 benefits of buying insurance early in Vancouver

1. Age-related: less premiums​

One of the factors in the calculation of insurance premiums is age-related. When purchasing the same coverage, the younger the insured age, the lower the cost, and the older the age, the more the cost.

2. Time-realted: the guarantee period is long​

Nowadays, many insurances are guaranteed for life, and once you start paying for insurance, you can enjoy the protection benefits right away The younger the age of insurance, the longer the protection period you enjoy; and many life insurances have a saving function, and the saving is calculated by compound interest, so the sooner you apply for insurance, the sooner you can enjoy the income, and the longer the accumulation time, the richer the income will be. This will help keep your costs low while you are in the prime of your life, perhaps as a parent as well. Not to mention, this is protecting your children, so that even in the worst case scenario when the parents is no longer alive, the family can continue going to school, and keep up their lifestyle without having to downsize, which is a big advantage living in Vancouver.

3. Inflation-related: reducing the cost of inflation​

With the development of society and economy, prices continue to rise, and the level of consumption will also increase accordingly. Similarly, it is impossible for insurance companies to keep the original rate products in the market for a long time. In this way, insurance products are constantly updated. The first product will be discontinued after a period of time, when a replacement product will be launched at a slightly higher rate. Here in Vancouver, our inflation goes up even faster than the rest of Canada (especially housing and at the gas pump), so this point is especially beneficial for the Vancouverites.

4. Underwriting-related: don't let insurance pick on you​

Most young people are relatively healthy, and they do not need a medical examination under a certain insurance amount, and even a medical examination can easily pass the underwriting. Older people generally require medical examinations. And if there are some problems with the body, it is likely to be required to increase the insurance coverage, or even be denied insurance.

When should you take out a life insurance policy?​

The best time to acquire life insurance is different for everyone, based on their family and financial situation. Generally, if someone else is living off your income, if you die with debts, or if you want to pass on additional cash tax free to your heirs, you need life insurance. And besides, you wouldn’t want your loved one to be without money… or to be in debt on their credit cards.

In terms of the time when you should take out a life insurance policy, the younger you are, the better. This is simply because the younger you are, the cheaper your rates will be. As you get older, you may have health problems that make insurance more expensive or keep you from getting it at all. By purchasing the insurance when you are younger, you also guarantee your insurability – meaning that you will have insurance coverage when you need it most and do not have to worry about being denied for insurance due to health or lifestyle reasons.

On the other hand, young adults, who are responsible for a mortgage, vehicle payments, and school loan debt, are more likely to put off purchasing life insurance. While clearing off current debt is vital, failing to purchase life insurance when you’re still young and healthy, similar to delaying retirement savings, can have a significant economic impact. The earlier you purchase, the better.

Since we cannot predict the future, we can only prepare in advance. Insurance is to plan ahead and pay for the unpredictable. Buying insurance while you are young and the premiums are cheap can also allow you to put aside the pressure and work hard without distractions.

No matter our age, we all need a life insurance advisor to help plan our financial plan​

In a complex and rapidly changing world, a life insurance advisor can help you with financial planning. Good life insurance advisors are professionals, fully supported by reputable companies, generally highly trained, and experienced in analyzing financial needs. Conducting a financial needs analysis for potential customers before selling can help customers understand their insurance needs and financial situation, as well as whether the available insurance products are suitable for their situation. Plus, you can leverage their expertise to design a comprehensive insurance plan to protect you for your needs now and in the future.

FAQ

The best age to purchase life insurance in Vancouver, regardless of age, is as soon as possible to ensure you and your loved ones are financially secured in the event of an unexpected occurrence.

Yes, purchasing life insurance at 50 in Vancouver is worthwhile since it can still provide essential financial protection for your loved ones in the event of an unexpected event.

How much a month you pay for life insurance in Vancouver varies according to age, health, and coverage amount. To decide the appropriate amount for you, check with an insurance advisor.

Life insurance is a great investment in Vancouver. It provides significant financial security for your loved ones in the event of a tragic incident. There are investment-based life insurance choices that can grow your money tax efficiently while protecting your loved ones. To find the best solution for you, consult with an insurance advisor.

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Written by:

Jim Pan, CFP, MFA-P

Jim is a dedicated, fee and advice only independent Certified Financial Planner with a focus on supporting healthcare business owners during their crucial growth phase. His expertise lies in offering comprehensive solutions to minimize taxes while embracing a holistic approach. With a career spanning back to 2010, Jim has established a strong presence in the financial industry. He proudly holds a range of designations, including Certified Financial Planner (CFP), and Master Financial Advisor - Philanthropy (MFA-P). He is currently pursuing additional designations and qualifications to better serve his clients and community. Beyond his qualifications, Jim is a member and an esteemed participant in the Million Dollar Round Table (MDRT), an exclusive global association comprising the top 1% of financial advisors. Jim's commitment extends to the community, where he spearheads numerous charitable fundraising events and plays an active role in enhancing the well-being of others. Additionally, he has contributed significantly by serving on the board of the Canadian Mental Health Association in Vancouver. Currently, he volunteers with Junior Achievement of British Columbia (JABC) to present personal finance topics to youths.

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