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Is There a Benefit to Getting Life Insurance if You’re Young or Single?

By Cole Seabrook

Financial Advisor, O’Farrell Wealth & Estate Planning | Assante Capital Management Ltd.

Insurance Advisor, Assante Estate and Insurance Services Inc.

It may seem too soon to start thinking about life insurance in your 20’s and 30’s, but you could benefit over the long term by obtaining coverage early on in your life. Both your age and health are determining factors when it comes to the overall cost for coverage. When you are younger and in better health, it is likely that you will pay less. You should definitely consider putting coverage in place on yourself at a young age.


Before exploring the benefits of getting life insurance at a young age, it’s important to know the different types of life insurance coverage available. The two most common types of life insurance are Term and Permanent insurance.


Term insurance provides temporary coverage at a lower cost with fixed monthly payments over the course of the term. At the end of the term there is the option to renew or convert to Permanent insurance. Permanent insurance provides individuals with guaranteed lifetime coverage with the opportunity to build cash value inside the policy. Typically, Permanent insurance has higher cost, but is an asset that grows over the course of time. Both Term and Permanent insurance benefits payout tax free in the event an individual passes away to a named beneficiary. Even a small amount of insurance could help pay for your funeral expenses and/or pay any debt the individual has including student loans, personal loans etc.


Now that you have a better understanding of the most common types of life insurance, lets look at the benefits of getting coverage at a young age. The cost of your life insurance is based on your age, gender at birth, lifestyle, medical history, and current health. The longer you wait to obtain coverage the more you are going to be paying solely based on your age. If you experience health complications along the way this may increase the amount you will have to pay and, in extreme cases, you may be ineligible to qualify for coverage all together. In addition to lower cost while you are younger, insurance provides individuals with financial protection if the unexpected happens, and secures the insureds ability to get insurance if they develop any health conditions later in life.


There are many life events that trigger individuals to think about life insurance such as, buying a home, marriage, becoming a parent etc. In the event an individual passes away, they wouldn’t want to leave their family with these debts or headaches. Insurance can take care of this.


Everyone’s insurance needs are different and dependant on their financial situation, short-term, and long-term goals. Now that you have a better understanding of the importance of obtaining life insurance if you are young or single, what’s next? Speak with your Financial Advisor to determine; the type of coverage you need (Term or Permanent), how much coverage you need and to see how life insurance fits into your financial plan.


If you would like to learn more about the benefits of getting life insurance, feel free to reach out and we would be more than happy to educate you further.


Cole Seabrook is a Financial Advisor with Assante Capital Management Ltd. The opinions expressed are those of the author and not necessarily those of Assante Capital Management Ltd. Please contact him at 613.258.1997 or visit ofarrellwealth.com to discuss your circumstances prior to acting on the information above. Assante Capital Management Ltd. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. Insurance products and services are provided through Assante Estate and Insurance Services Inc.

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