Valentine’s Day is all about showing love, but what if you could give a gift that lasts beyond flowers and chocolates? Life insurance might not be the first thing that comes to mind, but it’s one of the most meaningful ways to secure your loved one’s future. Instead of something fleeting, you can offer lasting financial protection and peace of mind with affordable coverage. The life insurance cost varies depending on the type of coverage chosen and individual risk factors, with term insurance generally costing less than permanent insurance. In this blog, we explore different ways to gift life insurance in British Columbia, its benefits, and key considerations to keep in mind.

Why Consider Gifting Life Insurance for Valentine’s Day?

Gifting a life insurance policy can be a strategic way to:

• Provide financial security for a loved one beyond material gifts.
• Assist with long-term financial planning (e.g., estate planning or educational funding).
• Offer a truly meaningful gift that lasts beyond a single day.
• Cover various financial obligations, such as credit card debt or mortgages, ensuring financial security for beneficiaries.
• Consider disability insurance as an additional layer of financial security, providing income replacement if the insured becomes unable to work due to disability.
• Mention critical illness insurance as a way to provide a lump-sum payment upon diagnosis of a serious health condition, offering comprehensive coverage and peace of mind.

Ways to Gift Life Insurance in British Columbia

1. Purchasing a New Life Insurance Policy for Your Partner

One of the most meaningful ways to gift life insurance is by purchasing a new policy, whether it be term insurance or permanent insurance, with a loved one as the insured individual. Term life insurance is a flexible and affordable option that provides financial security to loved ones in the event of unexpected circumstances. In this scenario:

• You, as the policy owner, will pay the premiums.
• The insured person (e.g., your spouse or partner) receives coverage.
• You can transfer ownership of the policy to them later, allowing them to manage and use it as needed.
• If it’s a permanent policy, it may accumulate cash value, which can be accessed in the future. Permanent insurance generally incurs higher premiums due to its extended coverage options, but it provides lifelong protection.

Best for: Romantic partners looking to provide lasting financial security.

2. Transferring Ownership of an Existing Policy and Managing Life Insurance Premiums

If you already have a life insurance policy, you may choose to transfer ownership to a loved one as a heartfelt and strategic Valentine’s Day gift. Life insurance coverage can help cover various financial obligations and future expenses, ensuring loved ones are supported financially after the policyholder’s passing. Life insurance policies offer significant protection at lower rates due to streamlined distribution and underwriting processes. This means:

• They will become responsible for premium payments.
• If the policy has a cash value, there may be tax implications.
• The recipient will have full control over any policy benefits and changes.

Best for: Those looking to pass on a policy with built-in value as a lasting gift.

3. Naming Your Partner as an Irrevocable Beneficiary to Secure the Death Benefit

Another thoughtful way to gift life insurance is by naming a loved one as an irrevocable beneficiary. This ensures that the death benefit will be paid directly to them without the possibility of changes being made later. Appropriate insurance coverage is crucial to provide financial security for your loved ones. Obtaining life insurance may require a medical exam, especially for older applicants, but some policies offer ways to obtain coverage without an exam by completing a health questionnaire. When you pass away:

• The death benefit is paid directly to them, tax-free, and cannot be altered without their consent.
• They can use the funds for any purpose, such as covering debts, education, or daily expenses.

Best for: Partners, spouses, and dependents who rely on financial support.

Final Thoughts

This Valentine’s Day, consider giving a gift that truly lasts—life insurance. Whether you’re purchasing a new policy, transferring an existing one, or naming a beneficiary, understanding the options and implications ensures your gift is both meaningful and strategic.

For personalized advice on gifting life insurance, reach out to King Insurance Services. Our experts can help you choose the right approach based on your unique circumstances.

Contact us today to explore your options! You can receive a no obligation quote in seconds, making it easy to find the best plan for your needs.