It’s challenging to comprehend the more difficult parts of life. And although it’s difficult for me to choose what I’m going to eat for dinner every single night for the rest of my life, the decisions I’m referring to today are a bit more serious. 

I’m talking about what happens if we unexpectedly pass or lose a loved one. Okay, okay, please don’t exit or go to another post on my site. I’m telling you right now that this is a necessity. Before I get into the why’s and the how’s — you need to know the should’s. You should have life insurance, especially if you are a parent, or take care of a loved one who couldn’t survive without your financial support.

Read: How To Make An Online Will in Canada

What is life insurance?

Before telling you that you should have a specific type of insurance, it would be valuable for you to know exactly what life insurance is and how it can benefit you financially. 

Life insurance is similar to home insurance or car insurance in that you sign a deal between yourself and a company. You will make a monthly or annual premium payment that keeps the contract valid. In exchange for your payment, your life insurance provider will agree to pay a sum of money (or a death benefit) to your beneficiaries (your children or loved ones) upon your death. 

In simple and more ironic terms, life insurance covers anyone you leave behind once you die. Very romantic, I know.

Why is life insurance so important?

The benefits of life insurance can be limitless, depending on your situation. If you are a parent, own a business, or leave any loved one behind when you pass away, you’ll want to do whatever you can to support them without being around to support them physically. Relieving a financial burden can be the best possible way to take care of friends and family after you die.

Who should get life insurance?

Now that we know what life insurance is and why it’s so important, you’re probably still asking yourself: is this really for me? So here are a few questions to ask yourself to determine whether you need life insurance?

1. Do I have any dependents? Kids or pets?

2. Am I married, and do my partner and I have a lot of shared expenses?

3. Do I (or will I need to) support my parents financially?

4. Do I own a business?

5. Is my career or line of work risky?

6. Do I put myself at risk more than the average person?

If you answer yes to any of these questions, life insurance is probably a great idea. But, if you’re unsure, you can find out from the professionals.

Where can I get life insurance?

One great Canadian option is PolicyMe. You can find out if you need life insurance by taking their two-minute quiz. It’s nice because it’s no commitment until you know!

The best part about PolicyMe is that you can complete the process 100% online. Most applicants will be approved instantly right after they submit their applications. That means most users won’t need a medical exam.

The week after I had my daughter, I immediately went to their site. I opted for a 10-year plan with $300,000 of coverage, and the relief I felt was incredible. For less than $15 a month, I knew that my family would be okay if anything unexpected happened to me.

What types of life insurance exist, and which one is for me?

Some great questions that many people will consider when deciding whether they need life insurance are what type of insurance, how long they should get coverage for, and what amount they’ll need. 

There are two types of life insurance that you can choose between. First, there is term life insurance. This is fixed-term, usually between 10 to 30 years. It’s more affordable because you carry a lower risk of death and are typically younger and in better health.

The second option is permanent (or whole) life insurance which guarantees coverage throughout your life. Although this may sound more appealing, it can be very costly. Typically, whole life insurance acts as an investment vehicle as you can borrow or pull money out of this policy. But, again, it’s an expensive way to save for your retirement. It’s better to max out your retirement account each year than to purchase whole life insurance.

On average, whole life insurance can cost nearly 10 to 18 times more than term insurance coverage. As you age, whole life insurance premiums increase, which means you may not be able to afford this amount, and you could risk running out of coverage regardless of being led to believe that it’s permanent. 

If you’re unsure which option is best for you, speak to an insurance professional — or directly to a PolicyMe advisor. They are non-commissioned, so your best interest is in their mind always. They are available by phone: +1 (866) 999-7457 or email: info@policyme.com

As far as coverage goes, some good considerations include:

• Your age

• Your dependents age(s)

• Your current savings and liabilities (debts)

• How much income your family needs to cover their expenses each year

If you’re still unsure, it’s never a bad idea to see what your options are and take the two-minute quiz to confirm whether or not you even need life insurance or how much it may cost. Just remember — the longer you wait, the higher the price tag could be.