Insurance

Life insurance offers so many benefits, so no matter what stage of life you’re at. Whether you’re single, married with young children, or are retired, life insurance can help cover debts and other expenses if anything happens to you.

Types of life insurance

There are two main types of life insurance – term and permanent. Term life provides temporary coverage for a set amount of time (for example, 5,10, 15, or 20 and even 50 years), whereas permanent coverage is life insurance that never expires.

Term life is generally cheaper as it is only good for a set amount of time. Permanent insurance will cost you more in the short run but may work out less expensive in the long run as your premiums do not tend to increase as you age.

Life insurance when you’re single

Even if your single and don’t have a spouse or any children, it’s still important to get life insurance. There are several reasons that life insurance is important even if you’re single. Life insurance can be used to help:

• Pay off student loans and other debts, like a mortgage or car payments.
• Pay off debts you’ve co-signed for or have a co-signor for.
• Support people who are financially dependent on you, such as aging parents.
• Cover funeral expenses.
• Leave a legacy to a cause you care about.

Life insurance when you’re married or have children

Now that you’ve reached a stage in life where you’re married or have children, you’ve likely thought more about life insurance. There are so many good reasons to have life insurance at this stage of life. Your loved ones can use a life insurance payout to:

• Pay off any outstanding debts, including your mortgage and any co-signed debt.
• Cover various expenses – everything from everyday expenses likes groceries to tuition.
• Pay off your final tax bill.

You can also use life insurance to help increase your estate and leave a legacy to a cause that’s important to you.

Life insurance if you’re an empty nester or retiree

Congratulations! The kids have moved out and you’re enjoying retirement. That doesn’t mean your need for life insurance is done. Even at this stage of life, there are lots of good reasons to have life insurance, including:

• Paying off any outstanding loans or debts, including your mortgage and any debt you co-signed for.
• Helping support financial dependents such as your spouse or a disabled child.
• Paying off your final tax bill and funeral expenses.
• Leaving a legacy to a charity or cause you want to continue to support.

Your next steps

Now you know why it’s so important to have life insurance, no matter what stage of life you’re at. If you don’t currently have life insurance or want to increase your coverage, we can help – contact us today!

Canadians younger than 75 are more likely to become critically ill than to die. Critical illness can happen to you or anyone you care about. While you may have safety nets in place to cover actual medical bills, you will still have to deal with other costs in the form of lost income or the inability to pay bills and debts.

If you suffer a heart attack, stroke, cancer, major organ failure, or other serious ailments, your insurance policy will pay a lump sum benefit. 

Upon diagnosis, you can get use the lump sum benefit to:

• Keep your other savings or investments such as your RRSP intact;
• Take care of your mortgage, loans, and other debts;
• Pay for medical treatments not covered by your existing health plans;
• Compensate your lost income; and
• Get help running your business.

Disability insurance provides you with a proportion of your regular income in the event that you suffer from an illness or accident which means that you can’t work, either temporarily or on a permanent basis.

Many people neglect to take out disability insurance, favouring traditional life insurance policies instead. However, studies show that you are actually much more likely to sustain a disability during the course of your working life than to die whilst of working age. And such a disability or chronic illness can have a dramatic and long-term impact on your earning potential – in fact, the Council for Disability Awareness has found that the average absence from work for a long-term disability is nearly three years.

Did you know that your chances of living to 100 years old are better than ever? While living a long life may be seen as a great gift, we also need to be prepared financially to pay for their future long-term care needs. Long Term Care insurance pays a monthly benefit to an insured who is unable to perform at least two of the six activities of daily living without assistance.  The activities of daily living are bathing, dressing, toileting, transferring (bed to chair or vice-versa), continence and eating.  

Long-term care insurance provides financial protection should you become unable to care for yourself.