Chances are you’ve heard the ads for life insurance on radio or TV. The ads make it seem easy to purchase a large policy for a little money. While this is true in some cases it is not always that simple. There are many factors to keep in mind when considering the purchase of a life insurance policy. 

While these ads can make life insurance seem something that can just be bought off the shelf like laundry detergent or a television, it’s actually a complex and necessary component of managing one’s exposure to risk. 

If you’re unmarried and don’t have any kids, you may think that life insurance is something you can probably do without. But, obtaining life insurance at your youngest and healthiest is actually highly recommended! Here’s why: 

Should you have life insurance?

Do you have a long-term life partner?

Do you own a home and/or a business?

Do you have children?

If you said "yes" to any of the above, life insurance is definitely something you should take a careful look at adding to your risk reduction strategy.

In the event of your death life insurance allows those closest to you to live their lives with minimal financial impact, and at their current standard of living.  To accomplish this, your policy should cover any of your existing debts (mortgages, loans, etc) and be able to provide your family with your income replacement.

While $250,000 or $500,000 may seem like a large number, it becomes surprisingly small when you factor in all of the costs that go into keeping the lights on and the kids happy. 

Where To Start

Before you even speak to an insurance advisor about a life insurance policy, take stock of your current income and expenses to get a general idea of what your family needs to operate on a day-to-day and month-to-month basis.

If you have kids in college or private school, those bills need to be factored into the coverage amount. Own a business? You may need to structure your policy so that it can support operations of the business, or help your family get bought out if the unfortunate happens. In short – you need to do the math!

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Have Questions?

A Murray and MacDonald insurance advisor can help you navigate the process to ensure that you and your family have the coverage that they need, and how it fits into an overall risk reduction strategy. 

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