You probably already insure your home, your car, and your valuables, but what about what’s most important … your life and your earning power. Life insurance could be one of the most important purchases you ever make.

 

Purchasing life or health insurance may be the last thing you want to think about, but the key benefit to having it is the peace of mind that comes from knowing your family’s financial future is protected.

Canadians generally agree that life insurance should be part of a sound financial security plan, but many aren’t sure what type to buy or where to purchase it. We are here to help you find the answers to your questions. Contact us for professional advice.

 

Having the right life insurance protection can have an enormous effect on your life and the lives of those you love. A proper financial security plan can mean the difference between leaving your loved ones well positioned financially and leaving behind debts and an inadequate income.

 

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Do you need life insurance?

If your family depends on your income to provide a comfortable standard of living, then life insurance could be the most important purchase you ever make. If you die suddenly, your life insurance policy would provide your family with the funds they need to maintain their lifestyle and safeguard their financial future.

 

For people without family ties, life insurance can provide an efficient and cost-effective way to take care of any final expenses or to leave a gift to a loved one or a favourite charity, or to provide a supplemental income while you are alive. *

 

People with estates to protect can use an insurance policy to help pay the inevitable taxes that are due on an estate upon death. This can ensure as much of your estate as possible is passed on to your beneficiaries.

 

While you are still living some life insurance policies can build a tax-advantaged savings fund which you can draw upon as needed for personal or business opportunities, to supplement your retirement income, or to provide for long term care or home care for a family member.

 

If you are a business owner, either on your own or with a partner, you probably have personal liability for the debts of your business. In case of death, it is important that you have adequate insurance. Otherwise, the claims of business creditors could significantly reduce your personal estate and leave your beneficiaries without the financial security you had intended. Equally important is the smooth transition of ownership of the business. A life insurance policy can make that possible.

 

However you look at it, life insurance is a valuable part of your financial security plan.

 

What can life insurance do for you?

Life insurance helps to create security for you and your family. If you should die unexpectedly, it can be used to:

 

While you are still living, some life insurance policies can:

 

However you look at it, life insurance is a valuable part of your financial security plan.

When should you buy life insurance?

The best way to buy insurance at a reasonable price is to buy it when you don’t appear to need it; that is, when you’re healthy. However, it is seldom too late, or the wrong time to buy life insurance.

 

You should consider your life insurance protection during the different stages of your life, such as the birth or adoption of a child or a change in marital status. The purchase of a home or cottage, starting at a new job or launching your own business are also circumstances which should prompt a review of your insurance protection.

 

How much life insurance do you need?

The key to understanding your insurance needs is to determine what protection you need today, and keep in mind what may be important tomorrow. How much coverage you need, combined with your cash flow, and the length of time you need the coverage, are all used to determine the type and how much life insurance you should buy. Factors such as mortgages and other debts, dependent family members and your children’s education all play a part in determining your requirements.

 

What kind of life insurance should you buy?

The simple answer is that it depends on your short and longer term needs and preferences for flexibility and risk. There are two kinds of life insurance: term life insurance and permanent insurance. They are two very different kinds of protection that satisfy many, very different, life insurance needs. Term may be all the insurance you ever need, or it may be used as an interim step before purchasing permanent insurance. Possibly, a combination of term and permanent in the same policy may be the best solution for you. Let's look at the strengths of each and their differences:

 

FEATURES		Participating Life	Universal Life
Coverage  for life	Provides coverage for only a specified term	Yes	Yes
More then one life can be covered	Joint                                            Yes	Joint                Yes	Joint                   Yes
Guaranteed premiums	Initial premium is generally guaranteed. Renewal rate guarantees vary by company.	Premium for the basic insurance coverage are guaranteed. However a policy combining term and permanent coverage may contain both guranteed and non- guaranteed premiums. Please review the life insurance illustrations provided by your financial security advisor to determine what is, and is not, guaranteed.	A universal life policy typically contains guarantees on some of the monthly charges. For example, cost of insurance charges are usually guaranteed whereas premium tax, policy fees and any insured life fee may not be. When purchasing a universal life policy it’s important to understand which monthly fees are guaranteed and which can change.
Guaranteed cash values	No	Yes	Yes

 

 

 

 

 

Purchasing life insurance that meets your needs now and in the future can be complex; that’s why it is essential to get professional advice. Life insurance is definitely not a one-size-fits-all product. We will take the time to understand your financial goals and insurance needs, your risk tolerance and the control you want in managing your policy. Then we will help you to consider your options and ensure your life insurance is a good fit for you now, and in the future.

 

We’ve outlined the basics of life insurance above. You may want to know more about the other financial products and services we offer: