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With all the monthly bills and day-to-day demands on your paycheque, life insurance premiums can seem like just one more expense. Yet your family will face all those bills on their own if something were to happen to you.
Life insurance is an effective way to ensure your family will have the money they will need to meet obligations - and fulfill their potential - in the event you or your spouse were to die. There are a wide variety of life insurance products available, with different costs depending on the type of coverage provided, the insured person's age and health, smoking status, etc.
Types of Life Insurance
Term Insurance is the ideal choice for both temporary and life-time insurance needs of families. It gives you the assurance that your entire family will be taken care of when you die. It can provide an ongoing income to maintain your family's current lifestyle, pay the mortgage or debts and provide money for your children's education.
Whole Life Insurance provides permanent, lifetime protection for a level premium. Depending on the plan you buy, whole life insurance spreads the cost of your coverage over the lifetime of the policy or over a limited period of time.
Universal Life Insurance is the most flexible life insurance available today. You can customize your plan when you buy it, or easily make changes later on. Universal life offers you the opportunity for tax-advantaged investing. This gives you the chance to increase your wealth by investing money within your policy.
Life Changes, Your Insurance Plans Should Reflect Those Changes
Your life insurance needs to change to suit your changing life, as your family grows and your lifestyle evolves.
Major life events are oftentimes when we think about our future. These can include:
- Marriage
- Having a child
- Changing jobs / careers
- Retirement
It's important to review your life insurance coverage regularly, maybe annually, to look back at the changes that have taken place in your life and consult with your advisor to determine if your coverage still meets your needs.
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Your life insurance can help to protect your mortgage, and it provides more control and flexibility than traditional mortgage insurance.
- You own the insurance policy, not the bank or lendor.
- You can switch your mortgage to another institution without jeopardizing your insurance.
Mortgage insurance usually only covers the balance of your mortgage, and as you pay off your mortgage, so the amount of insurance you have decreases. When the mortgage is paid, your coverage is gone. With an individual life insurance policy, the amount of coverage is up to you, and it does not decrease as you pay of your mortgage; you have the coverage available for your family when they need it most. You decide when and by how much to decrease the coverage, and only if you want to.
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