Do you really need term life insurance? The answer is a resounding yes! Preparing for the unexpected is a key aspect of smart financial planning.

Prepare for the Future

It is never too early to opt for term life insurance, but always too late. You may be in great health now, but you never know what the future holds for you or your loved ones. There are times in everyone’s life when they need life insurance, whether it be due to critical illness, unexpected (or expected) death, or disability. Life is full of curveballs and, sadly, sometimes tragedy and sudden change.

A lot of young people don’t think about term life insurance because, well, they’re young. There’s a misconception that term life insurance is best for people at more mature stages of their lives. But young people, especially those with young families, may need term life insurance more than people at a more mature stage of life. If you have a young family, a mortgage, a business and or/other liabilities, you have a lot riding on your ability to be financially stable. This may be the time when your budget is the tightest, which may lead you to think that insurance policies are an unnecessary cost.

But life doesn’t discriminate! Tragedy can befall anyone at any age and at any stage of their lives. If you or your spouse pass away or become disabled or ill, the financial consequences could negatively impact your family’s ability to stay afloat. You may think you don’t really need term life insurance, but the exact opposite is true: you really do need term life insurance.

If you already have term life insurance in Alberta, remember that our life insurance needs may change over time as your family grows and your career and financial situations change. The best policy for you right now may not be the best policy for you later. It’s important to review your term life insurance policy in Alberta every five years or after each major life change (marriage, children, buying a home) to ensure that you have the right coverage.

Who should have term life insurance?

You really need term life insurance if anyone you love would be put at risk or suffer financially because of your death. Here are some questions you need to ask to determine whether you need term life insurance:

• Do you have young children? If the answer is yes, it’s imperative that you have a term life insurance policy that will take care of the financial obligations of raising children in the event of your passing or incapacitation.

• Are you a business owner? If so, you’ll need to make sure that all your business debts can be taken care of, as well as your financial obligations to your employees or any partners.

• Do you have assets that can’t easily be liquidated? These may include farms or ranches where the majority of the estate’s value is in land or a closely held business. In order to pass the land or business on your beneficiaries, it may be crucial to have enough life insurance to cover estate taxes.

• Do you have a family history of chronic illness? According to Statistics Canada, cancer and heart disease are the leading causes of death in every province and territory except Nunavut, where suicide is the leading cause. In Alberta, lung disease and other respiratory illnesses rank high among causes of death. If your family as a history of these diseases, you may be at a higher risk of developing one in your lifetime. Plan for the best by preparing for the worst.

• Do you own a house? Do you want your mortgage to be paid off in the event of your death?