Your mid-20s may seem like a young age to start considering life insurance, but early planning can help provide future financial protection and could save you money down the road.
“I would say the 25 to 34 age range can be a good time to start looking into life insurance,” says Matthew Phillips-Brown, senior life insurance advisor at TD Insurance.
He says it’s often a time of fewer commitments, whether familial or financial, but significant life events can still transpire and life insurance could fit into those plans.
“This is the age that people are finishing up university or college, looking at buying houses and starting families,” Mr. Phillips-Brown explains.
He adds that life insurance is not only prudent at a younger age, it can also be less expensive.
For instance, a 30-year-old male, standard-rated non-smoker, in good health, could get a TD 10-Year Term Life Insurance policy with $250,000 in coverage for $18 a month.
Term life insurance can be a first step in helping you plan your legacy and leave something for your loved ones in the future. This type of insurance can provide beneficiaries with a lump-sum, tax-free payment in the event of your death.
Term Life Insurance premiums are fixed for the entire length of the term. You may not require a physical exam (depending on your health and amount of coverage), and at TD Insurance the application can be completed in under 10 minutes online.
Your beneficiaries can use the proceeds from term life insurance to help them replace lost income, maintain their living standards, pay for a child’s education, pay off debts, and more.
Coverage amounts can also be adjusted over time to suit the insured person’s current situation.
“To increase or decrease the coverage amount on your policy, call an advisor and let them know what’s changed in your life,” Mr. Phillips-Brown says. “We can work with you to find a solution for the change.”
When you’re younger, it can be harder to envision all of life’s twists and turns, and what type of life insurance makes sense for you. At this or any age, you could seek professional advice to help navigate the available life insurance products.
Some misconceptions about life insurance might be holding back the younger age groups from exploring their options, says Stacey Callender, senior manager of Direct Life & Health at TD Insurance.
She admits she wasn’t really thinking about life insurance in her mid-20s: “I was young and didn’t think it was a priority.”
Her financial planner was able to explain how feasible and responsible it would be for her to get herself insured. Setting aside money every month for the future is a smart habit to form, and life insurance can be an important part of that. Ms. Callender did so early on, and now realizes how much it saved her.
“I think there is this idea that purchasing life insurance is very expensive, but getting coverage at a younger age is usually more cost-effective than waiting until you get older,” Ms. Callender says.
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Advertising feature produced by Globe Content Studio with TD Life Insurance Co. The Globe’s editorial department was not involved.