Sep 02 2016
When you’re deciding about whether or not to get a life insurance, think for a while and ponder on these few questions.If married, are you a major contributor to the household income and how would your spouse do if that income were to disappear? Do you have any dependents, such as children, and do they rely on your income? Do you own your home clear title or do you have a mortgage or pay rent and could your family afford to live there without your income? Once you have the answers to these questions, they will likely lead you to the decision about whether or not you need life insurance, and if you do, what type of life insurance coverage you need to protect those who count on you.
Similar to most youthful Canadians, your unexpected death may not pose as a financial difficulty for your family and friends, so having life insurance coverage may not be your major priority. But, if you have unsettled accounts or are supporting a family member, life insurance coverage would guarantee that your dependents can receive support if you pass away. It is also important to understand that life insurance costs go up as you age, so the younger you are when you start your policy the lower the cost.
If you and your spouse own a home, you likely will have a mortgage. The cost of your mortgage may be greater than either spouse could afford on their own, so having life insurance is extremely important. Other debts like credit cards and car loans can also bring more burden. Having life insurance can make a huge difference in the case of a spouse passing and allow the surviving spouse time to grieve without the financial pressures they would otherwise have to work through.
Whether your family depends on a single income or double income, when one spouse passes away, this could have tragic financial effects. Both you and your spouse must have enough life insurance to settle all expenses and allow the surviving spouse the time to focus on the family instead of the finances.
While you are enhancing your career, shifting jobs also implies shifting companies. It is important to know the coverage of your life insurance when you resign from a company and what is available with your new employer. Often there are delays or probation periods when coverage is not available, so having a 3rd party plan maybe necessary.
If you are in business for yourself, think about having a life insurance policy that takes into account the value of your business today and revisit it regularly as your business grows. The value of your business is often overlooked especially when you are a sole proprietor or the true asset of your business. Ask yourself what your business is worth today and what would your business be worth if you were gone?
Upon retiring, go over your life insurance needs with a financial expert. Reviewing your financial situation during your retirement is advisable. The coverage is costly at during this period, so you should know the options available and focus on what benefits make the most sense. Life Insurance can be used in estate or tax planning and could make a huge difference in what is left to your family after the tax man takes his piece.
If you have any questions of concerns regarding life insurance, please do not hesitate to call or email me. I will refer you to a great insurance agent from my circle of professionals who will help you in greater detail.