Answer like a pro

“ I’m young, I don’t need life insurance. ”

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“How to respond to the objection: ‘I’m young, so life insurance doesn’t concern me.’”

Too young for life insurance? On the contrary.

Life insurance is often seen as a product meant for older people or parents with children. However, getting life insurance when you’re young is not only logical but also highly strategic. In fact, the younger you are, the greater the advantages: lower premiums, guaranteed access to coverage, and long-term financial planning opportunities.

1. The fundamental principle of life insurance

Life insurance is based on the principle of risk transfer. The individual pays a premium to an insurance company so that, in the event of death, a sum of money (called a death benefit) is paid to the beneficiaries. This mechanism provides financial protection for loved ones, helps repay debts, or supports long-term goals (source: Financial Planning Manual, IQPF, 2023).

What many people don’t realize is that life insurance is not only a protection tool. It is also a financial planning vehicle, especially when it is permanent (e.g., whole life, universal life).

2. The cost of insurance is based on age and health

The price of life insurance increases with age. At 25, a term life insurance policy of $250,000 can cost as little as $15 to $20 per month. The same product purchased at 45 can cost two to three times more—and even higher if health issues have developed in the meantime.

Indeed, eligibility for life insurance depends greatly on one’s health at the time of application. A young, healthy adult is much more likely to obtain coverage without exclusions and at a preferred rate. A chronic health condition diagnosed at age 30 or 40 can make access more difficult—or even impossible.

3. Life insurance can be a strategic asset

When it is permanent, life insurance can also generate cash value that is, tax-sheltered savings that accumulate within the policy over time. This capital can then be used as a financial lever to:

  • make a withdrawal or take a policy loan (under certain conditions),
  • finance a project (e.g., a down payment),
  • support retirement.

According to the Canadian Life and Health Insurance Association (CLHIA), these products are increasingly being used as long-term accumulation strategies, particularly among professionals, self-employed workers, and entrepreneurs (source: CLHIA, 2022).

4. Breaking the myth: “I have no one to protect”

Many young adults postpone this decision, believing they don’t yet have a family to protect. However:

  • Many young people have student or personal debts, sometimes co-signed by their parents.
  • Others have a partner or a young child.
  • Some are considering starting a business and may need life insurance as part of their financing structure.

Taking out a policy now also means that coverage will already be in place later, when responsibilities arise.

5. An informed decision, not a rushed one

Getting life insurance at a young age is not a wasteful expense, but a forward-thinking decision. It is based on actuarial principles: the lower the risk, the lower the cost. It’s also a way to lock in your eligibility, regardless of your future health situation.

In a context where life expectancy is increasing but early diagnoses of chronic illnesses are also on the rise, taking out life insurance when you’re young becomes a responsible choice—not only for your loved ones, but also for your own financial future.

In conclusion

Believing that one is “too young” for life insurance is to forget that it is one of the few financial products you can no longer obtain once you truly need it. As Benjamin Franklin wrote, “An investment in knowledge pays the best interest.” In this case, an investment in foresight can do just as much.

Sources :

  • IPF, Financial Planning Manual, 2023 Edition
  • CLHIA, Report on Life Insurance and Young Adults, 2022
  • Canadian Institute of Actuaries, Personal Insurance Guide, 2021