Most of us would rather not think about it but as parents, it’s important we do. Today I’m teaming up with PolicyMe for some #MomLife real talk on the importance of protecting your children’s financial security with life insurance.
I sure do love this little guy and would do anything for him.
Most of the tasks of parenthood, I expected – from late nights to diaper changes (and in Emmett’s case, constantly procuring snacks 😂). But there are other parenthood responsibilities I’m still figuring out, like protecting Em and Elle’s financial security if anything should happen to me or Aaron.
When I worked in the public sector, I had a pretty decent life insurance plan through work. I thinkkkk. I’m going to be honest – I didn’t think about it too much. But now that I’m a Mum of two and self-employed, I’m taking the time to learn more about it and to evaluate the coverage Aaron and I currently have.
At first it seemed daunting. Expensive. Confusing. But I’ve done a deep dive and now feel more confident in my understanding of our current plan and the benefits of term life insurance.
In case you’re like me and want a better grasp on life insurance – and the pros of purchasing term life insurance when you have a young family – I’m teaming up with PolicyMe to share a digestible, easy-to-understand overview (with none of the jargon)!
Life Insurance Overview With PolicyMe
Understanding Life Insurance: Um, What Is It Exactly?
Life insurance is a contract with an insurance company that pays money to your loved ones when you die.
If you die during the lifetime of the contract and have paid your premiums, your family will receive one full lump sum of money they can use however they want – from paying off a mortgage to covering day-to-day living costs.
In most cases, life insurance is used to:
- help cover your child’s needs until they reach an age of independence
- pay outstanding debts, including mortgages and car loans
- help ease the financial burden on your partner
- cover other costs relative to your lifestyle, like paying a child’s postsecondary education or ageing parents’ nursing home costs
Do I Need Life Insurance?
If you’re here, odds are you’re a parent like me.
If you have a partner, child, ageing parent or any loved ones who depend on you for financial support, then – yes – you should get life insurance. It could be the difference between your family being able to continue living in your family home versus dealing with a huge financial burden if something were to happen to you.
Still not sure if you need it? Take this 2 minute quiz on PolicyMe.com to find out.
When Should I Buy Life Insurance?
There’s no right age or year to get life insurance, but if you have someone depending on you financially, now is a good time to start.
Also, the younger you are, the more affordable your life insurance will most probably be… so you can lock in those low rates for the entire term of your policy.
Types of Life Insurance
Okay, here’s the part that had me the most confused; there are SO many types of life insurance: like term life insurance, permanent life insurance, mortgage insurance, no medical life insurance, group/work life insurance… even life insurance policies specifically for children.
PolicyMe has some great resources that summarize all the different types of insurance so you can read up more on what’s available and what would be the best fit for your lifestyle.
Term Life Insurance: Great For Young Families
After several hours of reading and discussions with Aaron, we’re going to be switching to term life insurance as it best fits our needs.
It’s the least expensive way to buy life insurance and you simply pay premiums each month for the peace of mind that your loved ones will be financially secure if you pass away during the term of the policy.
You can select the term length – for example, 10 or 20 years – to coincide with your needs, such as until your children are independent and your mortgage is paid off.
As well, in a continued effort to put families first with simple and affordable insurance, PolicyMe now offers life insurance for couples. Plus, as an added bonus, couples save 10% off their policy in the first year.
What About Life Insurance For Kids?
PolicyMe’s vision is to be there for every family when life unexpectedly changes and with that in mind, provides $10,000 of free coverage for customers’ children.
But should you buy a separate life insurance plan for your kids? I personally found this article by PolicyMe very helpful and incredibly transparent. It summarizes that – in short – children most likely do not require a life insurance plan of their own.
If you’re a parent, I highly recommend that you give it a read.
Why We’re Switching to PolicyMe Life Insurance
I was trying to think of the best way to sum this up and I think I’ve got it: PolicyMe is to life insurance what Netflix is to movie night.
There’s a reason Blockbuster bit the dust, guys, and the life insurance industry – much like the bricks and mortar approach to renting movies – is pretty antiquated, in my opinion. So I appreciate that with PolicyMe, everything is online… because with two young kids, I definitely don’t want to be booking in-person meetings if I don’t have to!
They’ve streamlined and modernized the whole process… replacing what would traditionally take too many meetings and too much jargon-filled paperwork with a 15-minute online application.
I also appreciate that they’re passing the savings on to their customers. If you know me, you know I love a good deal – so another huge draw for me was the fact that their rates are the lowest in Canada. This is not your Grandma’s insurance company – and I’m here for it.
If getting life insurance is on your to-do list, I definitely recommend checking out PolicyMe.com and getting your instant, personalized quote. Plus, you can talk to their experts by phone or email if you have any questions.
Thank you to PolicyMe for sponsoring this post. As always, all thoughts are my own. I hope you found this information helpful!
Xo Holly Hunka
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