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Important Life Events That Lead to Term Life Insurance Decisions
Why choose term life insurance? This is one of the biggest questions that people ask themselves, before taking the important step of financially protecting their loved ones.
For many people, as we progress through the various stages of life, there are major events such as getting married, having children, changing careers, or buying a home. While these are major life changes in itself, they can trigger thoughts of how you can best care for these new responsibilities in the long term - life insurance as an example. Term life insurance provides peace of mind knowing that you have a financial safety net in place to care for your loved ones in the future.
This page will explore key life events that may trigger the need for term life insurance, so you can start to think about what major events or changes could apply to you or your loved ones.
There are many life events that can trigger insurance needs. Some of these potential triggers to get or change your term life insurance policy could include:
Now, let’s explore these major life events in more depth, so we can see how they influence when to buy term life insurance.
Marriage and cohabitation can impact term life insurance needs, because you need to start thinking about protecting your other half, in the event that something happens to you.
Will they be able to maintain your current standard of living without your income to support them? Do they have any foreseeable medical needs? Is their career stable?
All these questions are important to consider when choosing term life insurance after marriage, so that you can protect your spouse even after you're gone.
Starting a family can completely change the way that you think about your future, and the same holds true when adopting a child.
Now, you have another person that you’re responsible to raise, protect, and provide for. We used to think of this in terms of children leaving home at 18, but the world these days is very different. Many remain at home well into their 20s and 30s.
How will your partner pay for your family bills without term life insurance? Who will cover the costs of your child’s education, wedding, or future medical needs.
Term life insurance protects your family against all of these inevitable ‘what ifs’ that your partner will be forced to face alone, if you’re no longer there to support them.
Purchasing a home is a huge investment and commitment. It’s not uncommon for people to consider getting 20- or 30-year mortgages.
If you have a spouse, you’ll have to think about whether they can afford to maintain the mortgage payments alone if something were to happen to you.
Do you have children that you want to leave the home to? You’ll have to ensure they are financially protected to pay off the remainder of the mortgage, or else they may not get to keep the house.
Particularly for first-time home buyers, this can be the major event that triggers term life insurance to become a priority, so that they don’t end up losing the home they’ve spent so long working to buy.
If you’re considering changing careers or starting your own business, when is the right time to buy term life insurance?
There are quite a few factors that can justify considering term life insurance if you’re facing these major life changes, such as:
All of these questions are valid and can trigger the need for term life insurance for the first time.
Everyone dreams about retiring one day to enjoy the fruits of long years of work. However, if you’re starting to prepare for retirement, do you have term life insurance to continue supporting your loved ones in the event something changes?
Retiring often means a decrease in income. It can also mean loss of benefit coverage that was given by your previous job and taking on those costs yourself.
If your spouse is retiring as well, will they be able to take over the household costs or monthly expenses by themselves? What will happen as you both age if one of you gets sick and requires medical assistance, or even, assisted living?
Retirement is something to be excited about, for sure. But it’s also a major life event that can make term life insurance an invaluable asset to have.
Of course, not every fairy tale romance lasts forever. Sometimes things change, and when you’re facing divorce, updating your term life insurance may not be the first thing on your mind.
However, it’s important to remember that with certain providers (i.e., Blue Cross Life), you may be able to adjust your existing plan; especially if it's within the first 5 years of your coverage.
This way, you can still provide your loved ones (i.e., adult parents, children, siblings, etc.), with the financial protection they need for the future, without necessarily keeping elements that were designed to protect your previous partner.
Several factors can impact when to buy term life insurance, including those we’ve just discussed above. Each of these can also influence how much coverage you may require, especially if more than one applies to you.
If you’d like to explore some of the average term life insurance amounts currently held by Canadians (depending on their province), you can find specific statistics here.
The average household in Canada has approximately $483,000 in financial protection, but again, the way that their individual rates are calculated will depend on factors like length of term, coverage amount, etc.
With Blue Cross Life’s Term Life Insurance coverage, you can enjoy additional benefits, in addition to your chosen coverage, such as:
With over 23 million Canadians owning over $5.7 trillion in life insurance coverage (in 2023), there are a lot of people across the country that already see the value in protecting their loved ones financially for the future.
This actually represents 65% of the total insurance policies held by Canadians, which has grown almost 60% since 2013. That’s an enormous amount of growth for just 10 years.
When you consider how invaluable this type of protection is, and how many scenarios can justify when it’s the right time to buy term life insurance, it's clear why so many Canadians are prioritizing it as part of their financial planning.
The best part about major events or triggers for term life insurance is that you don’t need to figure out all the details on your own - at least, not when you choose Blue Cross Life to protect your loved ones.
Our insurance experts are always happy to answer any questions that you may have, so that you can find the perfect combination of coverage to fit your individual needs.
Or you can explore Blue Cross Life’s Term Life Insurance options right now and get a quote in minutes! We provide a straightforward, customizable solution that’s designed to fit your evolving needs.
This way, we can help you navigate these important life events with confidence, so you can ensure financial protection for your loved ones during the times that matter most.
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Term Life and Critical Illness Insurance products are underwritten by Blue Cross Life and distributed by PolicyMe Corp.
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