Should you go for life insurance if you are single?

/ Life Insurance / Jan 27, 2021

You have worked hard to get that dream job and you have finally done it. You have got the job you wanted to kick-start your professional career.

Next up is proper money management so you reach your financial freedom in due time. Long-term thinking gives you the inspiration to have a financial plan in place that covers the next 40 or more years of your life.

If you have not worked with a financial advisor to chalk out a sound financial plan, chances are the only insurance you have is home or automobile insurance. But then, why should you bother? You are single without kids; surely, there is no need of a personal life insurance plan. Or is it?

Why should you have an early financial plan in place in spite of being single?

A solid financial security plan is completely customized based on your income. It is important to think about your possible future financial goals, such as buying a house, having children, and sliding into a comfortable retirement.

Having an early investment plan in place today is critical for growing your wealth. A quick start could mean owning a house – years before you even expected it to happen.

Insurance help you prepare for unexpected health events

Accidents do happen and they could prevent you from working. It is also important to prepare for a serious health problem. The likelihood of either of these happening to you is greater than you might think.

You can deal with these risks with individual disability and critical illness insurance. If you are unable to work due to a serious illness or injury covered by your policy, disability insurance provides you with a replacement income. If you have a critical illness insurance policy, it provides you with a one-time lump sum payment when you need it the most.

Is company insurance worth it?

Many young people today know that they have a different career path than their parents did. Standing in 2021, rather than working the same job for decades, people are expected to change employers. While this is obviously not a problem, but it does mean you will likely lose the insurance provided by your employer every time you change jobs. Your new employer may not even offer the coverage you need.

It’s also important to remember that the insurance you get in your workplace normally offers basic coverage and benefits from a menu of options. Unless you get additional personal insurance coverage, it might be less than your actual needs.

The benefit of buying insurance while you are young

Buying personal insurance at a young age usually means that you have to pay the least for maximum coverage, as risks increase with age.

You simply cannot beat the life insurance rates you get when you are young. You can use this to lock in an affordable price for years to come.

Keep dependents in mind

People depend on you, even if you don’t have a spouse or children. If your parents don’t have enough money, you and your siblings could potentially be responsible for their health and long-term care.

You should consider going for life insurance if you have any one of the following instances:

  • You have a family member with special needs
  • You have taken out a personal or professional loan that a member of your family has co-signed
  • You want to leave money to your loved ones
  • You want to leave a large donation to a charity or cause.

The bottom line

If you decide to start following a systematic financial plan in your early years, it can help you put on the right track to financial independence. A life insurance policy, being a part of the financial plan can help you stay on the right path.

Get in touch with our experienced financial advisors to know your options in terms of the best and affordable life insurance in Toronto, Mississauga, Brampton, Ajax, Pickering, Oshawa, Markham, Vaughan, Milton, Oakville, Burlington and Hamilton.