Why do young families need life insurance? | Kaleido's blog article
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Why do young families need life insurance?

Kaleido's Blog

Written by: Kaleido

April 11, 2024

As a young mom or dad, you’re juggling a multitude of responsibilities: raising your children, managing household finances and planning for the future. Life insurance is sometimes overlooked, but it’s crucial for your family’s financial protection.

What is life insurance and why is it so important for young families? What types are available? What are the special features of Emma life insurance? Find out all the answers in this article!

Demystifying life insurance for young families

When you become a parent, your life changes radically. It’s your responsibility to protect your young family. That’s why buying life insurance offers protection and peace of mind to your family in the event of your premature death. It guarantees the payment of a significant sum of money to your loved ones, giving them the financial support they need to get through this difficult time.

Life insurance allows you to protect:

  • Your children: by providing for them until they reach adulthood
  • Your loved ones: by allowing them to maintain their lifestyle after you’re gone
  • Your mortgage: by paying off your mortgage in full
  • Your debts: by repaying your loans and debts
  • Your funeral: by paying funeral expenses

When should I take out a life insurance policy?

The sooner, the better! Taking out life insurance when you’re young can be advantageous, because premiums are generally lower for young people in good health. That’s why it’s important to act now.

However, there are key moments when it is particularly advisable to take out life insurance. Here are just a few examples:

  1. When you move in with your partner: When you start sharing your life and finances with a partner, it’s important to make sure you’re both financially protected. In the event of your death, life insurance can help your partner maintain the same lifestyle.
  2. When you are a new parent: The arrival of a child increases your financial responsibilities and the need to ensure that your child’s future is secure, even in your absence. This is often the moment when many people consider life insurance for the first time.
  3. When you own a home: When you acquire real estate and take on large debts such as a mortgage, it’s crucial to ensure that your loved ones won’t be financially burdened if something happens to you.

How do I choose the right insurance policy?

There are different types of life insurance, each designed to meet different financial needs and objectives. Let’s take a look at some of the options available.

Term life insurance

It offers protection for a fixed period (set by you). Terms are generally 1, 10, 20 or 30 years. The insurance expires at the end of this period if the insured is still alive. It is often chosen to cover temporary financial needs, such as repaying a mortgage or looking after children until they are financially independent.

Permanent life insurance

This insurance lasts for life (it will always remain in force as long as the premium is paid). It is often used to cover permanent financial needs, such as funeral expenses, or to pass on an inheritance.

Child coverage

This is protection for parents in the event of their child’s death. Premiums are affordable, and this insurance can also be used as an investment vehicle for the child’s future expenses.

Universal life insurance

It offers the flexibility to adjust payment amounts and frequencies, as well as investment options.

Whole life insurance

It offers guaranteed coverage, fixed premiums and a cash value component, making it a stable tool for financial planning.

What factors should young families consider when determining how much coverage they need?

The amount of life insurance coverage needed to protect your family is specific to each life situation. To establish the appropriate level of protection, you need to consider several factors, such as your current income and expenses, your financial obligations and debts, the cost of your children’s education, and funeral expenses.

What are the tax implications of your insurance?

In most cases, the insurance benefit your loved ones would receive in the event of your death is tax-free, so beneficiaries are not required to add it to their tax return. However, life insurance may be taxable in certain specific situations (policy loan, policy surrender, etc.), so it may be wise to seek professional advice to fully understand the tax implications of your insurance policy.

Discover Emma life insurance solutions

Emma stands out for its specially designed offer for young families and its personalized, streamlined approach. With Emma, you just fill in a short online questionnaire to see a precise assessment of your needs and the right amount of coverage for your unique personal and family situation. If you’re looking for more in-depth support, Emma’s advisors are on hand to guide you every step of the way.

Knowing that your family will be financially protected in the event of misfortune can give you great peace of mind. Don’t wait, protect your loved ones today!

Get a free quote with Emma

It’s fast, easy and 100% online!

1. Fill in the online questionnaire in just a few minutes.

2. You get the right quote the first time.

3. That’s all there is to it! You are now protected!1 !

Legal Notes

1. Emma Services Financiers Inc. and Kaleido Growth Inc. have entered into a referral agreement which provides for potential compensation. Kaleido Growth Inc. is a scholarship plan broker and investment fund manager, so it cannot sell or offer life and health insurance products, unlike Emma Services Financiers Inc.