Do I need a life insurance plan? This is probably the most frequently asked question in Canada when it comes to life insurance. This blog post will cover a few essential questions Canadians often ask when thinking about purchasing a life insurance plan.
Before you make a decision, you need to understand what life insurance cost and how it can benefit you or your family down the line. Individuals use life insurance to protect themselves or their families from financial loss if they pass away. In the unplanned event of a death, a person can still have financial needs such as funeral or cremation costs, paying off loans, funds to cover children’s education, mortgage payments, and an emergency fund to help the family of the deceased pass through a difficult time.
You need a sound life insurance plan if your family could use any of the above-mentioned financial needs after your passing. Let’s take a look at a couple of life insurance frequently asked questions (FAQs):
How much life insurance should I buy?
Before we answer this question, it’s important to understand that life insurance needs can change with the changing circumstances and become more complicated over time. For instance, if you have a family and you’re carrying a mortgage, you must consider having more life insurance coverage to address issues that might pop up later in your life. It’s recommended to start planning for your retirement early in your professional life.
So far as need-based analysis is concerned, you should take your future requirements and immediate cash needs to determine how much life insurance you should buy. The point is to ensure that your family has enough to deal with unexpected emergencies. While you need to develop a better understanding of your family’s needs and situations, consulting a qualified financial advisor will help you choose the right insurance plan.
A professional financial advisor will carefully analyze your financial objectives and then come up with options that make the most sense. Simply put, you should buy enough life insurance to address all of your financial needs in the future.
What kind of life insurance is right for me?
There are two basic types of life insurance: Permanent insurance and term life insurance. As the name suggests, permanent life insurance coverage offers permanent protection or as long as you need it. You can get a partial refund in case you decide to cancel your policy. You can choose from a broad range of premium payment options. On the other hand, term life insurance covers you for a specific period. For example, you can get protection for 10, 20 or 30 years.
When the term ends, you can either extend the plan or end it. Moreover, you can convert term life insurance into a permanent plan. The term insurance plan costs less as compared to permanent coverage. The shorter the term period, the lower the premiums. In the case of term life insurance, a policyholder can get death benefits during the term period.
Most Canadians don’t ask their insurance companies to provide details of their policy, which leads to misunderstandings down the road. People sometimes think it’s too time consuming or complicated to read through all the details. We advise you to choose the right plan and then make sure to take time to understand the technical aspects of your policy.
About Kewcorp Financial
If you’re in Edmonton and looking for a team of reliable financial planners to help you determine your insurance needs, Kewcorp Financial is ready to provide objective guidance. For all your insurance planning needs, please contact Kewcorp Financial at 780-449-6292 or click here.
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Most Canadians are underinsured and vulnerable to unexpected financial crises. Don’t be one of them. Work with our financial experts to streamline your financial and insurance-related matters today!
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