Probably not the advice you would be expecting from a life insurance website, but it’s the truth. If no one is depending on your income as their sole means of financial support, you probably don’t need life insurance (read on for the exceptions). The flip side is that if there is someone depending on you – insurance is pretty much a necessity.
Life insurance is designed to protect your loved one’s accustomed way of life. It protects it in the form of a tax free death benefit that is paid out to your beneficiaries. It’s out of this benefit that major financial obligations can still be fulfilled, even with the loss of your income.
Take, for example, a mortgage. Usually the mortgages people take are ones they can afford. That’s because it’s based on their current income. Now, what would happen if that income was to be suddenly cut off. Default on payments can mean a foreclosure. Adequate coverage prevents your loved ones from ending up homeless in the event of an unexpected death. A mortgage is a great example of why people buy life insurance, but not the only one.
Other reasons can include: covering final expenses; guaranteeing college saving funds; and helping to supplement retirement expenses. Having complete financial security means being prepared as best you can. The first step is speaking with a broker. It’s important not to put it off. Not only for the obvious reasons, but you will probably pay cheaper premiums the younger you are when you apply.
Let LifeCover.ca connect you with a broker today. Our nationwide network represent some of Canada’s largest insurance companies and can help you plan a solid financial future. See how easy life insurance can be, and request a free, no obligation quote right now.