Many people put off buying life insurance, some even until they retire. Before you follow suit, there’s an important question you need to ask yourself: If I died today, would anyone be left struggling financially? If the answer is yes, then it is important to include life insurance in your financial planning. For a family, life insurance can supplement your mortgage insurance and the insurance provided by your employer to help maintain a certain lifestyle. Death benefits paid by your insurance are tax-free, help offset your loss of income and can allow your family to cover essential financial needs, such as:
- Funeral expenses;
- Significant debt;
- Children’s education;
- Daily expenses.
There are two main types of life insurance: term and permanent (whole life). Term insurance is generally used for temporary needs such as mortgages and loans and permanent insurance is often used for long-term expenses (like funeral costs) and may include cash values. It is good practice to put insurance in place when we are young and healthy, as age and health status can affect pricing. Depending on health status, postponing to apply for an insurance policy and waiting at retirement could result in high premiums or having to apply for guaranteed acceptance products. These types of products can have high price tags and generally offer a more limited coverage.
Life insurance can also play a key role in estate planning. For example, it can help cover significant taxes upon death and ensure that assets such as a house or family cottage remain in the family.
Life insurance can also benefit business owners. Adequate insurance can:
- Be a tax shelter for savings;
- Be a source of retirement income;
- Help alleviate debt;
- Be a way to finance a buy-sell agreement between business partners.
If you are considering life insurance to help protect your family’s future or protect your business, an insurance advisor can help you evaluate your long-term financial goals and determine which option best fits your unique needs and circumstances. Taking this important step with a professional ensures that you make informed decisions for lasting security.
Virginie Benoit
Insurance Advisor
Alliance Wealth Management
Tel.: 705-753-2971 | vbenoit@alliancewealth.ca
Planning. Achieving. Together.
Alliance Wealth Management is a program provided by Aviso Insurance Inc. offering financial planning, life insurance and investments to members of Caisse Populaires and their communities. Trade-mark(s) of Alliance Wealth Management are used under licence by Aviso Insurance Inc. Your insurance contract will provide details of the coverage available under the plan you choose. Restrictions may apply.