Life Insurance for Millennials in Ontario Canada

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  • Millennial on mountain

Almost any age group can benefit from insurance. Many millennials have now reached the age where they are showing more interest in this type of asset. It can be considered as an asset because of the many benefits that this type of insurance provides.

How Life Insurance Works

Life insurance application

When an individual buys life insurance, they are entering into a contract with an Insurance company that they have chosen to do business with. A contract between the insurance provider and the life insurance shopper will be agreed upon. To reach this stage, the insurance shopper has to determine what kind of life insurance is going to be best for them.

It will depend on their particular circumstances as life insurance is a personalized product. Part of the contract for the insurance will outline the commitment that the Insurance company is making to the insured. Another section will deal with the cost of the insurance for the buyer which are called the premiums.

The Life Insurance Options

Decision Process Change

Life insurance shoppers will be given some options for the type of insurance they want. These options will consist of;

Each of these forms of insurance offers a specific type of life insurance based on the specific requirements of the individual wanting life insurance.

Why Should a Millenial Buy Life Insurance?

Why Question Marks

Some may question as to why they should buy life insurance. They know the requirements for other types of insurance they may purchase like a car or home insurance. But for some life insurance is considered to be more optional. Yet, this form of insurance has some distinct benefits to it.

Creating Financial Security

Millennials are in the age group where many are settling down and starting a family. This now gives them a greater responsibility when it comes to the financial future of their spouse and children. One of the most efficient ways of being able to financially protect them is with life insurance. The life insurance that is left for the family can help to address some of the important financial needs that they may be faced with which includes,

  • Covering the cost of debts that the deceased was responsible for and is now passed onto the spouse.
  • The opportunity to put funds away for the children’s future education.
  • The spouse may lose a period of time from their own employment while grieving and attending to financial matters. Having some life insurance funds to rely on can lift the financial burdern.
  • The cost of funerals is very expensive. Many that don’t have life insurance money to help cover these costs are left in a terrible situation. They don’t know how to can provide a proper celebration of life without going into more debt.
  • Depending on the type of life insurance being purchased it can have a cash value to it.
  • Some forms of life insurance can be used as a form of investment.
  • Millennials that do not buy life insurance when they are still in good health may find it far too expensive if they have health issues. Or in some cases, they may not be able to purchase the amount of coverage they want.

Life Insurance as an Option or Compulsory

In most cases life insurance is optional, but there may be circumstances where it becomes compulsory. For example, individuals that are taking out a mortgage in most cases are compelled to have insurance to cover this. Some financial institutions will try and sell mortgage insurance for this purpose. But, the other option and perhaps a better one is to take out a life insurance policy. Then make the mortgage holder the beneficiary of that policy. It should be enough to cover the mortgage in case of the death of the individual taking out the mortgage.

This is important for millennials to know because so many are within the age group where they may be buying their first house.

List Companies That Offer Life Insurance to Millenials in Canada

Fortunately, in Canada, there are several established insurance companies that offer life insurance. Some of these are;

Using Life Insurance Calculators

Calculator

Millennials are known for making the purchases they need in life in the quickest, easiest and most efficient ways. They expect to be able to do the same when buying life insurance.  One of the resources available to assist with buying life insurance is by taking advantage of the online life insurance calculators.

Several of the Insurance Companies provide life insurance calculators to help individuals like those in the millennial age group calculate their insurance needs. Here are some examples of how specific data can help determine the amount of life insurance needed.

Sun Life Insurance Company – Based on Five Year Calculation

Age

Gender

Smoker/Non-Smoker

Savings

Income

Percent of Family Inc.Needed

Financial Support Needed

Amt. Of Ins. Needed

25FNon Smoker$1,000$35,00050%5 years$92,145.
30MSmoker$5,000$40,00050%5 years$99,166
35MNon Smoker$3,000$30,00050%5 years$75,124
35FSmoker$3,000$30,00050%5 years$75,124.

 

When using these calculators, they may vary in their format. Some will ask for more information than others. The more information that is provided, the more accurate the calculator can be. Once the calculated quotes have been completed, it is recommended that the insurance shopper seek out a representative of the insurance company. The quote is the starting point for being able to negotiate a life insurance contract. This type of insurance is personalized meaning that each has their own specific needs. Some of the data required for creating a quote is comprised of;

  • The age and gender of the person wanting to be insured
  • Whether they are a smoker or no smoker
  • What is their debt ratio
  • What is their annual income

These are all factors that are important in determining what would be the best amount of life insurance to purchase based on these as well as other circumstances.

Some of the Insurance Companies that provide life insurance calculators online are;

  • Sun Life Insurance
  • IA Insurance
  • Manulife Insurance

Insurance Calculators can be used as part of the research for obtaining life insurance with another segment being to obtain several quotes before pursuing it further.

Resources

https://www.cpp.ca/life-insurance-quick-quote/insurance-needs-calculator/
https://www.policygenius.com/life-insurance/types-of-life-insurance/
https://www.thestar.com/business/personal_finance/insurance/2011/03/17/life_insurance_10_things_you_need_to_know.html
https://www.finder.com/benefits-of-life-insurance
https://www.investopedia.com/articles/markets/091615/6-biggest-life-insurance-companies-canada.asp
https://www.sunlife.ca/ca/Learn+and+Plan/Tools+and+Calculators/Life+insurance+calculator
https://ia.ca/life-insurance-calculator#calc
https://www.cpp.ca/life-insurance-quick-quote/insurance-needs-calculator/
https://globalnews.ca/news/3488311/mortgage-life-insurance-canada/