What Is It?
Life insurance is a way to protect your survivors and dependents against financial hardship! A life insurance contract or policy is a legal agreement between you and an insurance company that guarantees payment of cash, the face value of the policy, upon death
o If you are in a personal partnership (usually marriage), how much do you contribute to the family budget? If you were to die prematurely, how would your survivor(s) get by, especially dependent children?
o Does anyone else depend on you financially, such as a parent, grandparent, brother or sister?
o If you are a single parent, what level of support payments are you making or getting? How would these be kept up in the event of the contributor's death?
o If you have a mortgage on your home, do you want it paid off in the event of death? Do you know that your mortgage or car loan may become fully payable upon your death?
o If you have children, do you want to put aside money to complete their education in the event of your death?
o Could the life insurance play a role in paying the taxes incurred when capital property is transferred from one generation to the next?
What Different Policies will do for you? (permanent & term)
As a rule, permanent needs should be covered with permanent insurance, temporary needs with term insurance. Often, a combination of policy types does the best job for you.
· So, what is a temporary need? A mortgage; high needs for continuing income when your children are young; some business obligations; and so on.
· Permanent needs? Funeral expenses; supplementing a survivor's income; covering capital gains taxes at death, especially if family property is to be passed on to the next generation; children who remain dependent for their lifetimes, often due to a disability.
Older? Insurance Can Be Found
There may be times when older people see a special need for extra life insurance. If you are in good health, you can obtain life insurance at premiums that reflect your present age.
But what happens if you are not insurable?
A few life insurance companies offer guaranteed issue plans that is, life insurance policies that are issued with no medical questions asked. Typically, up to $25,000 will be issued to those between ages 50 and 75.
Be aware that restrictions apply if death occurs within the first two or three years of taking out the policy. Read the contract.
How much life insurance you need?
To work out the specifics of your own situation, you'll want a financial needs analysis. It gives you a picture of the capital your survivors need when you die.It looks at assets that would be available to them, liabilities they would have to deal with, and continuing family needs for income.
Dear friends, to get FREE financial analysis or to find out how much you have to pay for your insurance, simply give me a call at 416-854-0970 or drop a line at firstname.lastname@example.org so that I can assist you with that!
Remember, YOU can't predict the future, but YOU have the power to plan today. Don’t wait until it’s too late! It is about you, your health, your family and your future!
”What we anticipate seldom occurs, what we least expected generally happens….”