When thinking about life insurance, it’s crucial to consider how much your family depends on your income.
Whether you're early in your career or nearing retirement, protecting your loved ones from the financial impact of your unexpected death is essential. Life insurance can act as a powerful tool for income replacement.
Who relies on your income?
- Are you the primary wage earner?
- Do you have children or aging parents who depend on you financially?
Why life insurance matters?
Consider that many Canadians carry significant debt, and without proper planning, your family may struggle to meet financial obligations if something happens to you.
In the event of your death, the policy payout can cover mortgage payments, ongoing living expenses, fund your children's education, final expenses (funeral and burial) and capital gains. Without the proper amount of insurance, your family may face tough financial choices, like:
22 million Canadians own $5.5 trillion in life insurance coverage
Canadian Life & Health Insurance Facts - 2023 Edition
Term life insurance works well for those looking for income replacement for 10-20 years, whereas permanent T-100, whole life or universal life is ideal for people who understand the importance of protection for life and also may need to pay capital gains realized on their passing.
When selecting a policy, think about:
- How many years of income do you want to replace?
- What are your monthly expenses and debts?
- How will your loved ones handle a mortgage or loan payments?
If you’re young and healthy, now is the best time to lock in affordable rates. Many people mistakenly believe that life insurance is too expensive, but in reality, it may cost less than your daily coffee.
As You Progress in Life
- Early Career: Premiums are more affordable, and starting early provides coverage at a lower cost.
- Mid-Career: You may now have a family and a mortgage, making life insurance more crucial to protect their future.
- Near Retirement: Although premiums may increase with age, it’s still essential to reassess your coverage to ensure your family's financial security.
With the right plan in place, you can rest easy knowing that your loved ones are protected. By setting up life insurance as income replacement, you offer them the financial support they’ll need to navigate life after your passing.
Ready to Protect Your Loved Ones?
Take the first step and speak with Jules, who can guide you through your options and help tailor a plan to suit you or your family’s needs.
