What is the best time to get life insurance?

Wondering what is the best time to get life insurance? The simple answer is sooner than you think. Age and health drive price, so buying earlier locks in lower premiums and stronger approval odds. Big life moments, marriage, a mortgage, a new baby, a business, raise the stakes and the need.

Most Canadians can benefit from purchasing life insurance early, as it allows them to secure the lowest premiums and maximize long-term financial security.

This guide shows how timing affects cost, how to decide as a single or partnered adult, and why waiting can backfire. You’ll also see how term compares to mortgage life, and what protections exist if an insurer fails. By the end, you’ll know when to act and what to buy.

What is the best time to get life insurance?

The best time to get life insurance is when the coverage will protect real risks at the lowest sustainable cost, usually as early as possible. Premiums rise with age, and new health issues can increase rates or limit options. 

Buying in your 20s or 30s often secures decades of affordable protection and preserves conversion flexibility if needs become permanent later. Securing coverage early also helps you avoid difficulties or gaps in protection during critical moments when financial security is most needed.

Here are a few other situations when you might want to consider buying a life insurance policy:

You’re getting married and starting a family

Getting married and starting a family are major milestones in one’s life. It is a time for planning and commitment to a future that is, to some extent, uncertain. A prudent financial step for a young couple is to invest in life insurance. 

The primary income earner in the household should especially consider life insurance to protect the family’s financial stability in case of unexpected loss. Purchasing life insurance typically increases in urgency during key life milestones such as marriage or childbearing.

You have children or dependents

The natural progression of a family after marriage is having children. It is particularly important at that time to ensure the future of those young ones. One way to do that is to buy life insurance to ensure that if either parent has an untimely death, the family will have financial protection that covers financial obligations. The death benefit from life insurance can also be used to cover education costs for dependents preparing for university, as well as funeral costs.

You’re buying a home

Another big milestone for married couples and individuals is buying a home. A home purchase carries a substantial financial obligation, which may include a large mortgage. This is a time when you need life insurance to protect your family and your investment. When you purchase life insurance, you are taking care of one part of your family’s financial plan. Life insurance helps ensure your family can continue to cover significant expenses like the mortgage, childcare, and daily living costs.

While group life insurance through an employer can provide some protection, it may not be sufficient to cover a mortgage, so an individual policy is often necessary.

You have high debts or financial responsibilities

If you have high outstanding debts that could burden family members, one way to ensure they are not left with a bad financial situation is to buy life insurance. You can simply get a term life insurance policy with enough death benefit to pay off the debts. Life insurance premiums on term life insurance policies are relatively affordable and give you insurance coverage and peace of mind. Your income level often determines how much coverage is necessary, with coverage typically recommended at 10-12 times your annual income.

You are self-employed

Self-employed individuals often buy life insurance for a variety of purposes. To begin with, they can use life insurance coverage to protect their family’s future should they meet an untimely demise. An early life insurance policy can provide a safety net as you begin acquiring major assets, such as a home or a business. Self-employed people should consider having their own policy, as it offers greater control and flexibility compared to relying on employer-sponsored or joint policies.

It is also often necessary to buy insurance that will cover business debts or credit card debt that is owed by the business. This is especially important if there are business partners who may be liable, and the loss of income of a partner could be a significant burden.

You are a key member of your family business

There are certain people in a business that is critical to the business, they are called key employees. In a family business, key employees are particularly important to the survival of the business and the family. There are even special types of life insurance policies for key employees. Find a financial security advisor who may recommend the right insurance company for these types of policies.

It’s also important to plan ahead to continue coverage if your business structure or key roles change, so you avoid any gaps in protection.

You have a high-risk job

High-risk jobs put you and your family’s financial support at risk. Buying adequate life insurance protection for your family is a sensible thing to do. Individuals in high-risk jobs may also face health problems such as high blood pressure, which can affect eligibility for coverage and increase insurance premiums.

Buying life insurance when you have a high-risk job may be more challenging though. Permanent life insurance may be more expensive than you can afford. A good strategy may be to buy permanent life insurance with a smaller death benefit to have permanent coverage at a lower rate. In addition, buy a larger term insurance policy for more protection for a period of time when it may be critical to have insurance.

You are a stay-at-home parent

Stay-at-home parents are essential to a family’s growth and children’s development. It is prudent to buy either term life insurance or permanent life insurance to help a surviving spouse cope with the ongoing obligations of the family, especially if the children are of a younger age. Life insurance can ensure lifelong financial support for a spouse or an adult child with special needs.

You are a single parent

Single parenting has enough challenges, especially when young.. Having a life policy to leave a nest egg for your child/children if you should die prematurely is the prudent and kind thing to do for them. If paying the insurance cost is a financial burden, just think about the cost to the child or children to be left without their only parent and no financial support.

You support ageing parents financially

Caring for an ageing parent or parents carries a big responsibility. If they depend on you for support, buy term life insurance with enough coverage to take care of their needs when you are gone.

There’s more to life insurance than just death benefit coverage. Life insurance can also provide living benefits, such as cash value accumulation that you can borrow against or use to pay premiums if you become disabled. Permanent life insurance policies typically build up cash value over time. So it’s important to choose a policy that meets your current and future needs when you purchase a life policy.

The bottom line: it’s rarely “too early,” but it can become “too late” or “too expensive.” If the premiums fit your budget today and the coverage would materially help someone tomorrow, that’s the right time.

Do single people need life insurance?

Life insurance for single people is worth it with the right strategy. If no one depends on your income and you have no co-signed debts, you may not need a large policy today. But many singles still benefit from coverage.

Start with liabilities. If parents co-signed your student loan, or a sibling relies on your support, term life can prevent debts or expenses from landing on family. If you’re a single parent, coverage is essential for childcare, housing, and education continuity.

Consider future insurability. A small permanent policy can lock in coverage while you’re healthy, build cash value, and preserve options. If you later develop a condition, you’ll be grateful the foundation is in place. Even a modest term policy with good conversion privileges can serve as a bridge to permanent coverage later, without a new medical.

Think about final expenses and estate plans. A modest death benefit can cover funeral costs and settle affairs, so savings remain intact. If you plan charitable gifts or want to leave something to a niece or nephew, life insurance creates immediate liquidity.

You don’t need to over-insure. Right-size the amount to real risks today, and keep options that let you scale as life changes.

When is the best time to buy life insurance – Conclusion

The “best time” is when someone would feel a financial hit if you weren’t here, and before age or health can push premiums higher. Term life handles mortgages and income gaps efficiently. Permanent coverage solves lifelong goals. Many term policies let you convert later without a new medical, so you can start lean and build. 

Whole life insurance can also provide retirement income through its cash value component, offering a stable, tax-advantaged stream to supplement your retirement savings. Joint first-to-die policies provide the same coverage amount for both partners, ensuring equal protection under one policy. 

If you’re ready to lock in today’s rates and protect tomorrow’s plans, ask for a quick quote. We’ll size the amount, pick the right term, and keep options open for the future.

Frequently asked questions about when to buy life insurance Canada