Life Insurance on Mortgage Debt: Buy it while you are still Young

The basic rule of life insurance is: The younger you are, the more affordable the life insurance is. Knowing this, you’d expect young adults to be the majority of people who buy life insurance. Unfortunately, this is not the case. A Financial Post article by Melissa Leong relates how young people are seemingly indifferent about life insurance and its benefits:

Young Adults

“Major milestones often prompt people to think about life insurance: getting your first job, buying your first home, getting married or having children.

Seventy per cent of Canadian fathers have a life insurance policy and 40% bought or upgraded their policy when they got married; 76% did when they became a parent, a recent RBC Insurance survey reveals. But almost 40% of them have no clue how much the policy is worth or how much they need.

Gen Y consumers are the least likely to own life insurance. But four in 10 Gen Y households say they would have immediate trouble meeting everyday living expenses if a primary wage earner were to die, says LIMRA’s 2010 Life Insurance Ownership Across the Generations study.”

To say that you don’t need life insurance is like admitting you have no plans for the future. Know that when you hit 50 years of age (and you will someday), you potentially won’t have the same insurance opportunities and pricing as you would if you were still 25 years old. That’s why you’ll hear financial advisors constantly telling young adults to obtain life insurance on mortgage debt, other debt and even future debts as soon as possible.

To learn about the best mortgage life insurance available, don’t hesitate to talk to established insurance brokers like Insurance Advantage.

(Source: Why young adults need (or don’t need) insurance, Financial Post, Jul. 20, 2013)