Planning For the Future: Life Insurance

At some point in life, everyone needs to invest in life insurance. Nobody wants to think that they may die early, however it is important to consider your options.

Life Insurance is an insurance policy that will pay out a lump sum of money, known as a death benefit; to beneficiaries should the insured person die.These policies help your spouse or children pay your final expenses such as, funeral costs, taxes, and any debt after you die.

It is very important to consider, as your move through life, when you should invest in a life insurance policy.

Why do I need Life Insurance?

You should consider investing in a life insurance policy for a few different reasons. First, if you want to protect your family financially should you pass away. Second, if you would you like to leave a large donation to your favorite charity. Or, if you have taken on any additional debt, like a mortgage, and want to ensure your loved ones could continue living in the home, after your death.

When to consider Life Insurance?

  • If you have young children: The death of the bread winner in a family with very young children would leave the family with a very tight budget. In a single income family, childcare will now be a new expense. It is important to insure the life of parents to prevent difficult situations for your children.
  • You are married: When you are married your style of life involves two incomes. May your spouse pass away; you will be left with the burden of a mortgage payment, credit card debt, and funeral expenses. Life insurance can save your spouse from financial problems, after you pass away.
  • Your relatives rely on you: If you have parents or other relatives that depend on you for care, you might want to consider a policy that will help them if you were gone.
  • You have a business partner: If you own a business with a partner, it is recommended to have a life insurance policy on your partner. If he/she were to die, the policy would provide you with enough money to buy out your partners shares.

What happens if I’m alive when my policy expires?

It is very important to understand what happens if you outlive your selected life insurance plan. Most people automatically assume that your policy just expires, however that may not be the situation. It is likely that after your policy term has ended, your new policy will have much higher premiums. It is important to thoroughly understand your insurance policy before entering so that you are prepared if you outlive your life insurance policy.

Are you thinking about investing in life insurance? Once you have determined your needs, you have to start researching your options. Call Baron Insurance today and we will help you find the best life insurance policy to fit your lifestyle.

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Sources:

Canadian Protection Plan (www.cpp.ca)

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