Should I Have Life Insurance in My 30s?

By February 28, 2024 Advisor, Blog, Consumer, News
Young couple in their 30s looking at a laptop while relaxing on a couch

Like many Canadians, as you leave your carefree 20s and step into your 30s, you focus on career growth, home ownership, and maybe starting a family. It’s also when thoughts about financial security begin to creep in.

Getting life insurance in your 30s might feel a bit early, but it can be a savvy move. You’ll benefit from lower rates and make the most of your current health, setting yourself up for a more secure future.


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Health and Age Factors

Generally Better Health

If you’re in your 30s, you’re probably generally in good shape. You’re more likely to have left behind the less healthy habits of your younger years and have settled into better routines with exercise and diet. There’s a good chance you’re physically strong, and that your body hasn’t yet started to show signs of aging, like chronic diseases or arthritis. You probably also have a robust immune system that can fight off illnesses better. It’s when your body is at its peak in many ways. Locking in low life insurance rates in your 30s is often a smart financial strategy. It can lead to significant savings over time as you secure more affordable premiums while you’re young and healthy.

Lower Premiums

Life insurance is more affordable for people in their 30s, primarily because insurers base their rates on your risk. You’re generally at a lower risk for chronic diseases, such as heart disease, diabetes, and certain types of cancer, which tend to develop more frequently as people age. These conditions can significantly impact insurability and insurance premiums. Securing insurance early generally translates to lower rates for the duration of the policy. This can lead to significant savings over time, as premiums generally increase with age and the onset of potential health issues.

Early Detection of Health Issues

Being in your 30s means you might catch health conditions early before they become big problems. High blood pressure or early signs of diabetes are easier to handle now than later, when they could turn into bigger issues like heart disease. Regular check-ups can help catch these early warnings. Having life insurance already in place means you’re covered for the future, even if these small health issues become more serious. Once you have a significant health problem, getting life insurance can get tougher and more expensive.

Building Cash Value in Permanent Policies

Opting for a permanent life insurance policy, like whole life, in your 30s allows more time for the cash value component of the policy to grow. Part of your premium goes towards the insurance cost, and the other part is allocated to the cash value component. This cash value then earns interest over time. The longer the policy is held, the more time there is for this cash value to accumulate and earn interest. This may be used for emergencies, retirement, or even as collateral for loans. It can also be a form of forced savings, contributing to overall financial stability.

Consideration for Family History and Genetic Factors

If you know that certain health issues, like heart disease or diabetes, run in your family, getting life insurance in your 30s can be a wise decision. Often, these family-related health problems don’t pop up until you’re older. You can avail yourself of more favourable insurance terms and lower premiums. If you wait and a health condition develops, insurance could be harder to obtain. Plus, many policies offer extra options for covering these kinds of family health issues. Critical illness riders on life insurance policies can provide additional coverage for specific serious health conditions. If you’re diagnosed with a covered illness, such as cancer, heart attack, or stroke, this rider can pay out a lump sum. It can be useful for covering out-of-pocket medical expenses, lost income, or even experimental treatments not covered by health insurance.

Life Circumstances in Your 30s

Starting or Growing a Family

When you have children or plan to, life insurance can become a crucial safety net. It helps ensure that if something happens to you, your children’s financial needs, like daily living costs and future education expenses, can be supported. This coverage gives you peace of mind, knowing your children will be financially secure even in your absence.

Marriage or Partnership

Entering a marriage or long-term partnership often means combining finances and sharing responsibilities. Life insurance can become a cornerstone of financial planning. It can help protect your spouse or partner from the financial impact of losing your income if you pass away. It can help your partner maintain their standard of living and meet any joint financial commitments without undue stress. It can help take care of shared debts, support a retirement nest egg, or help your spouse upskill for their career.

Homeownership and Mortgages

Buying a home is one of the biggest financial commitments you’ll make. Life insurance can help pay off your mortgage if you pass on. It can help your family avoid having to sell the home or struggle with mortgage payments. It can also provide for home maintenance, property taxes, and even future renovations. But remember, the insurance might only cover part of these costs. That’s why it’s important to plan your finances carefully.

Career Advancement and Income Changes

As you climb the career ladder, your financial responsibilities will often grow. A higher income often means taking on larger financial obligations. Updating your life insurance to match this means helping to secure your current lifestyle for your loved ones, and safeguarding future dreams like your kids’ university education or a spouse’s career change.

Taking Care of Aging Parents

If you’re supporting elderly parents, life insurance can be a lifeline to them in the unfortunate event that you pass before them, if they are named as beneficiaries. It can help cover their living costs and healthcare needs. It can help fund home modifications for accessibility, such as installing ramps or stairlifts. It can also cover long-term care services, whether in-home or at a care facility. It may help them to enjoy their golden years comfortably without being a financial strain.

Debt Management

If you’ve accumulated personal debts, such as student loans or credit card debt, life insurance can help prevent financial burdens from being passed on to your family. It can provide the means to settle your debts so your family isn’t left dealing with financial stress on top of their loss.

Financial Security for the Future

For Canadians in their 30s, many still find it challenging to build substantial savings, especially considering the cost of living and other financial obligations. For those with limited savings, life insurance helps ensure dependents are taken care of. It’s crucial for covering everyday living expenses, childcare, and maintaining a comfortable lifestyle for the family. Life insurance can be a means to settle outstanding debts like mortgages and personal loans, which is particularly important for those who haven’t been able to save enough to cover these liabilities. It’s a solid step towards making sure your family’s future is secure, covering everything from everyday costs to the big life goals, no matter what happens.

What Life Insurance is Best for a 30-Year-Old?

Selecting the right life insurance policy in your 30s should be a thoughtful process, taking into account your personal financial situation, health status, lifestyle, and future goals. It’s important to assess your current financial status, including income, debts, and ongoing obligations. If you have significant debts or people depending on your income, you might need a policy with a larger death benefit to help ensure they’re taken care of. Plus, consider how your needs might evolve. Initially, term life insurance, which covers you for a specific period and is generally more affordable, might meet your needs. However, as your circumstances change, you might find the lifelong coverage and potential cash value accumulation of a permanent policy more suitable.

Reach out to Canada Protection Plan1 to find life insurance options that fit your 30s lifestyle. Whether you have health concerns, are an extreme sports enthusiast, or just prefer a more straightforward process for buying life insurance, our No Medical2 & Simplified Issue Life Insurance could be the perfect fit for you.

Canada Protection Plan is one of Canada’s leading providers of No Medical and Simplified Issue Life Insurance. Our mission is to provide reliable protection and compassionate service from coast to coast with easy-to-purchase life insurance, critical illness insurance and related products. Our expanding product choices will help you get the coverage and peace of mind you need for a better financial future. Canada Protection Plan products are available through over 25,000 independent insurance advisors across Canada.

422932 CAN (01/24)

  • 1 Foresters and Canada Protection Plan (CPP), and their employees and life insurance representatives, do not provide, on Foresters behalf, financial, estate, legal or tax advice. The information given here is merely a summary of our understanding of current laws and regulations. Clients and prospective purchasers should consult their financial, estate, tax or legal advisor regarding their situation.
  • 2 Insurability depends on answers to medical and other application questions and underwriting searches and review.
To learn more about Canada Protection Plan and our line of comprehensive No Medical and Simplified Issue life insurance solutions, call Broker Services at 1-877-796-9090 and we will be happy to assist you or put you in contact with Sales support in your region.

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