Starting a family is one of life’s most exciting milestones, but it also brings new financial responsibilities. One piece that’s often overlooked is life insurance. If you’re a young parent, grandparent or caretaker helping to raise the next generation, getting covered sooner rather than later could be one of the best decisions you make.
Not sure where to start? You’re not alone. The team at Odlum Brown has put together this guide to help you better understand your options and what to consider.
Why does life insurance matter?
Most young families rely on two incomes to cover essentials such as mortgage payments, childcare, groceries and long-term goals. If one partner were no longer able to contribute, could the other manage on their own?
Life insurance can help your family maintain their standard of living and their home through a difficult time. Likewise, critical illness insurance can offer your family protection that pays a tax-free lump sum if you are diagnosed with a covered condition, such as cancer.
When is the right time to get coverage?
Many families plan to arrange life insurance once they have children or take on a large financial commitment such as a mortgage, but waiting can sometimes mean fewer options or higher costs. Securing coverage as a young family can help you access lower premiums and more predictable protection before life throws any curveballs.
Owning your own policy may also provide greater flexibility at a lower cost than mortgage or credit insurance from a lender, such as a bank.
Stay-at-Home Parents Need Coverage Too
The contributions of a stay-at-home parent are easy to overlook. From academic advising to household management, their work has been valued at $162,571 per year. 1 Without financial protection, the surviving parent could face significant added expenses at an already difficult time.
Insuring Children Creates a Lifelong Gift
Beyond protecting yourselves, consider insuring your children or grandchildren. Whole life insurance can build wealth and protection over time, which can be transferred to a child on a tax-deferred basis to support their education, first home or the start of a business. Critical illness insurance can also cover children or grandchildren, helping your family to focus on their care without financial strain.
The Bottom Line
Life insurance isn’t just a safety net; it’s the foundation of your family’s financial future. Starting earlier can give you more options and flexibility, helping support your family with greater peace of mind.
Whether you work with a financial planner or investment advisor, it’s worth exploring your options with a firm like Odlum Brown. Our insurance products are offered exclusively to Odlum Brown clients through Odlum Brown Financial Services Limited, a wholly owned subsidiary of Odlum Brown Limited.
Generations have trusted Odlum Brown with their financial futures for more than 100 years. As an independent Canadian investment firm, we offer integrated wealth management solutions tailored to you.
To learn more about how Odlum Brown can help you and your family achieve your financial goals, contact an Odlum Brown advisor today.
1 1“Moms: we know you’re worth it.” Salary.com, 2018, salary.com/articles/stay-at-home-mom
This material has been prepared for informational purposes only and is not intended to provide tax, legal, financial or other advice. Recipients of this information are expressly cautioned to seek the advice of professional advisors, as applicable, before acting on any part of the information provided herein. The information presented, while obtained from sources we believe reliable, is checked but not guaranteed against errors or omissions.