Why do I need life insurance? For many, life insurance never crosses our mind until we or someone we know go through a life changing event. It’s not until some important event in our life takes place: such as, getting married, buying a house or having kids that we start thinking more about our obligations responsibilities and priorities, although we are all going to die –what we don’t know, is when. Life insurance is a tool to help people prepare for the unexpected. Unfortunately for many Canadians confusion exists about why they need life insurance. And today only forty three percent (43%) of Canadians owns a life insurance policy.
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A recent industry survey highlighted the top two reasons why Canadians delay in buying life insurance. Most felt it was a low priority for them or they thought that life insurance is not affordable.
Deferring the purchase of life insurance can be the easier decision for individuals. However, the longer you procrastinate the harder it may be to get coverage, costs or premiums maybe higher and there is always the risk that the unexpected happens and your family doesn’t have the income protection when they need it. Yet life insurance is very affordable and is an important part of a personal financial plan. In fact for the price of a daily cup of coffee, the typical Canadian mom with a young family could cover the amount of the average Canadian mortgage on a new home. The following are typical life events that can lead to people considering the purchase of life insurance.
One: getting married, when you get married you share each other’s financial obligations, would your spouse have enough money to keep their current standard of living, cover your funeral costs, and pay off any debt and taxes?
Two: buying a home, could your family cover the mortgage payments and all of the associated households maintenance cost if you die too soon?
Three: starting a family, if something happens to you? Would your children have all of the opportunities that you dreamed of? Would there be enough money for day care or tuition or college or university?
Four: starting a business, would your business survive if you or a business partner passed away? If you find yourself entering one of these exciting events in life speak to an advisor who can explain the benefits of life insurance for protecting your income in the future and providing for your loved ones should the unexpected occur.
Five: planning for funeral & last expenses, as it could cost up to $25,000 to pay for funeral expenses, legal fees and such, and you don’t want your loved ones scrambling to put you in the ground. Life insurance is an easy and affordable way to cover those final expenses and make it easy for your family.