Let's be honest, life insurance is not something you think about every day. In fact, it might not even cross your mind every year... Which is completely fine! Life insurance is a tool that everyone need to strengthen their financial health and plan for their future. But when should you start thinking about adding it to your financial toolkit? Here are 3 life events that should light the "life insurance" light bulb in your head.

#1 Moving in with your partner

A big step for any couple, moving in together is one of the key events that impacts your financial and personal life. Life insurance becomes relevant at this point since your death would have an important domino effect in your better half's life. Let's take a deeper look at this:

  • Funeral expenses:  If you live together with your partner, chances are you want them to inherit your belongings in the event of your debts (which you can specify in your will). This means they might also be the ones having to pay for your funeral expenses if something happens to you. Life insurance can cover that for you, whether it's for your parents or partner.
  • Debts: Let's say you get a loan for a car that you would both be using. If something happened to you, your partner might have a hard time keeping up with the payments without your income and thus might need to let go of the car in a hurry. This can often result in having to sell the asset at a lower price and a lingering "empty" debt afterwards. Covering personal or joint debts with a life insurance is always recommended to help leave your assets to your loved ones, and not the debt that comes with it.
  • Financial relief: Having to deal with the loss of a loved one is one of the toughest challenges life can throw at us. Even more so when it comes with an added financial stress. Life insurance helps with this side of things, as you can plan for an additional amount to make sure your partner can take some time off work to heal and take of him/herself without any financial stress.

#2 Becoming a homeowner

Congratulations, you finally bought the home of your dreams! You had everything planned out for the colours, furnitures and even the patio you always wanted. But have thought about life insurance? In most cases, buying a home means getting a mortgage, and a mortgage is...a debt. You've probably seen me coming with this, but a debt as important as a mortgage should be covered with a life insurance. In fact, most banks will offer you a bundle called "mortgage insurance" when you sign for the loan. These "mortgage insurance" are usually life insurance with an added disability insurance on the same policy. Buying a home already comes with a ton of paperwork, but the good news is there are now convenient ways to buy life insurance online.

#3 Having a child

Last but not least, having a child should definitively trigger your inner "life insurance" switch. Kids are financially dependent on their parents, meaning part of your income is directly used to provide for them. With that in mind, having life insurance to use as an income replacement in the event of an unexpected death is a great way to protect your family's future in the event of your death. The insurance amount gets calculated with your income and budget, and usually includes enough for your partner or your children's guardians to provide for them until they are 18-21. Term life insurance is a good option for this type of coverage, since they cheaper and easier to get and you won't need it when your kids grow up, so you shouldn't bother paying for whole life protection for that.

All things considered, you don't need to think about life insurance too often, and you certainly should not feel anxious about getting one at the "wrong" time! The two key words to know are "Debt" and "Family". Whenever you have a change in your life affecting one these two themes, be sure to give life insurance a thought!

Bonus: Starting a business

Looking to turn your side-gig into a small business? If you have business partners and are looking to start something, life insurance is a must have to protect all the efforts you have put into your project. Covering key founders of a business with a life insurance makes sure the project survives if something happens to one of them.