Life insurance – the ultimate gift for Valentine’s Day

As Valentine’s Day approaches, the time to find the perfect gift is only getting shorter. Aside from the usual chocolate and flowers, you could gift something more unique and thoughtful for your special someone – a life insurance policy.

Why is life insurance a good gift for Valentine’s Day?

Life insurance may be an unconventional present, but here are three reasons you should consider gifting one this Valentine’s Day:

• It’s unique yet practical – You’ll be able to surprise your significant other with an original, unexpected gift that also has great use: ensuring their financial protection for the future. 

• It’s a long-term investment – Life insurance won’t just wither away like a bouquet of roses. Instead, the money you put in can offer peace of mind and give off great returns in the long run. 

• It’s romantic – There’s nothing that shows you care more about your loved one's future than a policy that protects them after you’re gone.

Who should get life insurance?

Gifting life insurance doesn’t necessarily mean buying your loved ones their own policy. Instead, you could buy life insurance for yourself and name your partner as a beneficiary. This means that in the event you pass away, they’ll receive the payout which can help secure their future financially. 

You should consider gifting life insurance for Valentine’s Day for the following reasons:

• Your partner relies on your income; 
• You and your partner have dependents (e.g. children) that rely on your income;
• You have an outstanding mortgage or loans/debt (e.g. credit card debt, student debt) that could be passed on to your loved ones.

Which type of life insurance should you get for Valentine’s Day?

So you’ve decided on the gift of life insurance, but now you need to decide on the type of life insurance you should buy – here’s a quick overview of some popular policy options.

Term life insurance 

Term life insurance protects your loved ones financially for a set period of time in which they could be more financially vulnerable in the event you pass away. For example, if you have an outstanding mortgage for the next 10 years, you should consider purchasing a 10-year term life policy. 

This is typically also the most affordable option because the payout expires if you don’t pass away before the term ends. You can, however, look into purchasing a renewable or convertible term life insurance policy.

Whole life insurance 

Whole life insurance, or permanent life insurance, guarantees a payout for your beneficiaries after your passing. Keep in mind that you’ll need to pay regular premiums for the rest of your life for the policy to remain active. 

These types of policies come with an investment component where your premiums are invested in the market to grow in a tax-sheltered account. Permanent policies also have a cash value that you can borrow against, so if you’re ever in need of some extra money, you can pull from the payout even before you pass.

Whole life insurance is more expensive than term life insurance because your provider will need to pay out the death benefit sooner or later. The upside, however, is that your premium remains constant, and purchasing this policy while you’re young will lock in a lower price.

READ: Term life vs. whole life insurance

Joint life insurance

As a couple, you can also consider purchasing joint life insurance – a life insurance policy that insures two people at once. Typically, this comes in two forms: joint-first-to-die or joint-last-to-die. 

Joint-first-to-die policies payout after the first death between the two people in the couple. Your insurer will provide the death benefit to the remaining partner, and the money is typically used to cover expenses such as funeral fees, mortgage debt, and income replacement. 

Joint-last-to-die, on the other hand, isn’t paid out to the couple but rather their beneficiaries after they both pass away. This might not be a conventional Valentine’s Day gift as your partner won’t be the one that receives financial protection, but it could be a good option for those that have children – it can be used to relieve capital gains tax and pay off any passed on debt. 

How to get cheap life insurance this Valentine’s Day

There are a few ways to lower your life insurance premium, such as purchasing the policy while you’re young, improving your health, and lowering your coverage limit. The most simple way, however, is to compare life insurance quotes from multiple providers with us. By doing so, you can select the life insurance company that offers the coverage you need for the best rate possible. 

The bottom line

Life insurance may just be the Valentine’s Day gift you’re looking for – it’s a unique, long-term investment that will show exactly how much you care for your partner. To purchase a policy today, compare life insurance quotes with us and we’ll connect you with a licensed life insurance broker who will guide you through the entire process. 

Also read

Life insurance for young married couples

How does age affect life insurance rates?

How much life insurance do I need in Canada?