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Why Do I Need Life Insurance or How Do I Know

Thinking about death is something that no one really wants to spend a lot of time contemplating. It’s important to consider who would face financial stress in the event of your death. Life insurance will provide your loved ones with the cash they need.

The goal of a life insurance payout is to replace your income after your death. Additionally, a well-designed life insurance policy will cover expenses such as your funeral costs, ongoing costs of living, future expenses related to your children or grandchildren and various other financial needs.

Some families have not considered the tax on their estate and the very assets like family cottages they want to leave to their children might have to be sold to pay capital gains tax. A well structured policy can ensure your estate goes where you want it to. In addition there are more complex strategies that can be used for investments and business income that a qualified advisor can provide options for.

Every person is unique and a life insurance policy that works for you may not work for someone else. Working with an experienced insurance advisor is the best way to ensure you get an insurance package that suits your financial needs for both today and tomorrow.

Don’t have a life insurance policy in place? You are not alone; a study conducted by TD Insurance found that 31 percent of Canadians do not have any form of life insurance. The reasons for not having life insurance vary from not feeling there was a need to being concerned they couldn’t afford it. The study also found that 1,500 people surveyed that did have life insurance were concerned that their coverage would not be adequate in the event of their death.

Shopping for a life insurance policy that works for both you and your budget can be hard. There are dozens of insurance companies offering policies that come with lists of stipulations and costs. With so many options and jargon, it makes sense that so many people get frustrated and not bother. Most insurance experts recommend that you should purchase a policy that provides five-to-seven times your net income. This can vary depending on your dependents and your debt.

Many people think that life insurance is only meant for people with minor children. It can be hard for your surviving partner to make ends meet without your income. Between credit card bills, mortgage/rent payments, car payments, and all the other expenses your partner could face a lot of financial stress.

Married couples with children have additional expenses to worry about. If you died tomorrow, would your family have enough money to maintain their current lifestyle? Unfortunately, many of your financial obligations will continue after your death and will be left for your loved ones to deal with. A strong life insurance policy will take into account the needs of your family for both today and for the future. Single parents may face even more challenges in the event of a death.

Even if you’re retired with grown children, there are various expenses that could burden your loved ones. Your assets may lose their value when your estate is divided up and taxes and funeral expenses added into the equation your loved ones may not receive as much as you think. This is not a legacy that many want to leave behind.

Life insurance brokers and agents will work with you to understand your coverage needs. They will sit down with you and go over all of the numbers. Life is full of changes and a life insurance policy can be updated to take into common life events such as marriage, divorce, additional children, mortgages and various other factors.

At Tanner Financial Services, we’ve been helping people like you find a life insurance that works for individuals and families in Southern Ontario since 1999. Our team of insurance advisors takes a lot of pride in our knowledge of life insurance and we always work hard to offer a personalized level of service. Learn more about how a life insurance policy can protect your loved ones and can stay within your budget by contacting one of insurance advisors at our Richmond Hill insurance agency today.

 

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