Life insurance is often a topic of discussion people avoid. The thought of one’s own mortality can make people uncomfortable, but it is important to understand your risks and to protect your family and your wealth. There are several times in your life that you need life insurance more than you might think.
Here is a general guide to when it might be the right time to look at purchasing a life insurance plan. If you already own a life insurance policy, it is equally important to review it to ensure that you have the proper coverage for your needs.
- Getting married – if you were to pass away a life insurance policy can give your partner/spouse a financial resource that could assist them with their cost of living and to cover your final resting expenses.
- Having children – the death benefit can help to compensate for the loss of your income that your death would cause. It can help your family maintain their standard of living by helping to cover their daily and future expenses.
- Buying a house or taking a loan – a life insurance policy’s benefit can help to relieve your loved ones of financial burden and stress by covering /paying off the balance of your mortgage/loan in the event of your death.
- Supporting ageing parents or ill family members – because these individuals rely on you for their financial or physical care and support, your death would severely affect their ability to survive. Having a life insurance policy and plan in place helps to ensure they will be taken care of when you are gone.
- Starting a business – life insurance can protect your business and family from the burden of debt.
- Becoming self-employed – a life insurance policy can provide financial protection for your family/loved ones in case the worst should happen. It can also provide other benefits, acting as another tool for wealth accumulation while you are still living.
- Becoming a stay-at-home parent – although stay-at-home parents do not bring home a paycheck, they provide significant value to their family. A life insurance policy can provide the financial resources to enable your surviving spouse to pay for numerous additional services that may be required to keep the household running.
- Estate planning – Life insurance is an important component of estate planning. It can be utilized to offset the cost of paying debts, funeral expenses, legal fees, tax liabilities and probate fees. This helps to protect and preserve your assets (including cottages and vacation properties), keeping your estate intact for your beneficiaries/heirs.
There are numerous types of life insurance and as your life changes, your insurance coverage needs to evolve as well. Choosing the right type of insurance plan can be overwhelming. A licensed insurance advisor can help to address any questions or concerns you may have and help you find the best solution to fit your needs.