Published July 2020
The birth of a child is one of those momentous events in life that changes EVERYTHING. You start driving with your hands at 10 and 2 o’clock on the steering wheel again. You discover what it’s like to feel happy and terrified at the same time(!). You start thinking about the future – and not just yours. Because your universe just expanded, and it’s not just about you and your partner anymore.
Thinking about the long-term financial security of your family once children enter the picture is natural, and one of the main reasons Canadians purchase term life insurance. Starting a family and buying a home are both listed as the #1 reasons that 33% of Canadians purchase life insurance.1 Of those who own life insurance, 77% have children under 18 living at home.2
Life insurance can be there for them when you can’t be.
One need look no further than some of the basic costs associated with having and raising children to see the clear need for long-term financial security. For instance:
- The cost of raising a child to the age of 18 in Canada is $270,0003
- The cost of one year of university education in Canada is $19,5004
- 1/3 of households would have trouble paying the bills if a primary earner passed away5
If some of these numbers make you feel more nervous than you were in the delivery room, don’t worry! Term life insurance can provide the financial security you want for your family. It can help your family replace lost income, maintain their lifestyle and cover bills and expenses after you’re gone.
Don’t assume your work coverage is enough.
If you have coverage through work, ask yourself, “Is it enough?” 47% of Canadians have life insurance coverage through work.6 But group plans are often based on a multiple such as 2x your salary. It would be a mistake to think that’s all the coverage you would need to protect your growing family, especially when it’s generally recommended that you have 7 to 10x your salary in life insurance to replace lost income.7 While great as a top-up to individual term life insurance, don’t rely on employer life insurance alone.
Don’t wait. The sooner the better!
The earlier you get term life insurance, the better. That’s because in part, the costs are based on your age and health status. Being younger and in good health can give you access to better rates, which can help save you money in the long run. Pay special attention to 10- or 20-year term life insurance plans which can go a long way in providing longer-term financial security for your family.
When it comes to protecting your family and children, don’t take chances. Choose a company with a strong reputation and staying power.