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

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When is the best time to buy life Insurance
Article Overview

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

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, the premium will definitely be higher than it is now. In this article, we’re going to share some insight on when is the best time to buy life insurance as a Canadian and why you need one.


When is the best time to buy life insurance?

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”.

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 major benefits of buying insurance early in Canada

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. It is related to time: the guarantee period is long

Nowadays, many insurances are guaranteed for life, and once you apply for the insurance, you can enjoy the protection benefits. The younger the age of insurance, the longer the protection period you enjoy; and many life insurances have a dividend function, and the dividend is calculated by compound interest, so the sooner you apply for insurance, the sooner you can enjoy the dividend income, and the longer the accumulation time, the richer the income will be.


3. Related to inflation: 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.


4. Related to underwriting: don't let insurance pick 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, or if you die with debts, 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 takeout 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 become older, you may suffer health issues that increase the cost of insurance or possibly preclude you from purchasing it.

Young adults, on the other hand, 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 strong health wise, similar to delaying retirement savings, can have a significant economic impact. The earlier you purchase, the better.

Since we cannot predict the future, so 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 yourself to put aside the pressure and work hard without distractions.


Is life insurance cheaper when you’re younger?

Yes. When you’re younger, life insurance is less expensive. Generally speaking, the older the insured age is, the higher the risk the insurance company is exposed to, and therefore the higher the premium. Insurance firms may even deny the insurance applications because of the insured’s health.

What age is too late to get life insurance?

Most life insurance advisors always advice their client to get a life insurance plan before the age of 60 years. Because 80% of life insurance company tends to reject most applicant application that fall within such age range.

What age buys the most life insurance?

Statistics shows that the average age of Canadian with the most insured rate is 40 years.

What is the minimum amount of life insurance coverage?

If you are the insured, the way to determine your life insurance coverage is to assume how much cash and income your loved ones will need in the event of your death. Things to consider include end-of-life care costs, funeral expenses, and personal loans and debts. Your policy should provide enough cash to cover these expenses, plus of course enough to cover your family’s living expenses, your children’s education, and other future expenses.

Regardless of which policy you decide to choose, try to narrow the gap between:

  1. What your family actually needs.
  2. what your family gets.

How much should I pay for life insurance?

When it comes to life insurance, the policy with the lowest premium is not necessarily the best policy. Therefore, when choosing a policy, you should focus on whether the policy provides all the options and benefits you need to meet the needs of your family now and in the future, not whether the premium is the lowest.  

Is it necessary to undergo a physical examination in order to purchase insurance?

Uncertain. The insurance company will decide whether the insured needs a medical examination according to the insured’s age, the amount insured and the health condition. The insured must truthfully declare past health conditions and medical records so that the insurance company can use it for underwriting purposes. 

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 a reputable company, generally highly trained, and experienced in analyzing financial needs. Conducting 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 for your needs now and to protect you in the future.


The best age to get life insurance is as young as possible. Some parents even get life insurance for their children, which is great. As soon you have the income to support it, you should look to get life insurance. The sooner you get it the cheaper it is. 

The best strategy when shopping for life insurance is to determine what you need the money for, and how much of it you need. 

The best life insurance is one that fits your needs the best. Speak to an insurance expert so you can determine which kid is the best for you! 

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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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