((Life Insurance Policies to Protect Your Family))
((Make sure the future for your loved ones stays bright even after you can no longer provide for your family.))
((Many people take out life insurance to ensure that children or family members aren’t left struggling to pay a mortgage or other bills after their passing. It’s a way of helping to prepare for the future.
Even if you don’t have children or relatives, life insurance can be given to charities of your choosing, or you might wish to set up a scholarship. You can specify in your will how you want the insurance money to be used.
There are different types of life insurance, two of the most common are: Permanent Life Insurance and Term Life Insurance. Permanent Life Insurance is also called ‘whole life insurance’. It’s more far reaching than Term Life insurance as it lasts for the duration of your life.
Permanent Life Insurance has an insurance component and an investment component. To help grow your fund, a portion of your premiums are invested and managed by the insurance company. This is set up so you can pay your premium at a certain time and then forget about it. It’s a policy for people who want minimum fuss, but maximum financial growth.
To get the most out of a Permanent Life Insurance policy, it’s best to set it up when you’re young and in good health, as insurance premiums don’t change over time.))
((A Permanent Life Insurance Policy is best if you want to leave something behind for your kids or grandkids. However, it is more costly than Term Life insurance. If you just want to insure short-term financial responsibilities for five to twenty years, then a Term Life policy would be appropriate. For example, if paying off your mortgage takes 20 years, then take out a 20-year term policy for the limit of your mortgage. Or, if you have young children who would become independent after 20 years, again, a 20-year term life policy would work out.
This type of life insurance gives you coverage for a set period, such as the span of 10 years to pay off a business loan. You can typically buy Term Life Insurance for a period of 5, 10, 15 or 20 years.
With Term Life Insurance, the longer the term, the higher the monthly premium. When the policy expires,you would have options to renew, but at rates that may have increased from what they previously were.
Term Life Insurance is not just used for mortgages. There are other short-term uses of a term life policy. You may want insurance while your kids are young, until they grow up and no longer depend on your earnings. Of course, if you want to leave something behind for your adult kids or for your grandkids, then you should get a Permanent Life Insurance policy or a mix of both.))
((Being diagnosed with a critical illness can turn your life upside down. When you’re ill, the last thing you need to worry about is how your family will cope if you can’t work, or how you’ll pay your medical bills.
That’s where Critical Illness Insurance comes in. This kind of insurance allows you to get well and focus on recovery, without added stresses that can actually hinder your recuperation. It provides financial security as well as access to any support services you need to get on your feet again.
Best of all, it doesn’t leave you and your family with an overwhelming financial debt to pay off afterwards.
If the illness you’re diagnosed with is covered by your plan, then Critical Illness Insurance is paid out in a tax-free, lump sum. Most Critical Illness Insurance policies provide coverage for over 22 illnesses, the most common in Canada being: heart attack, stroke, and cancer.
Critical Illness Insurance can be used in a variety of ways to help support you and your family during a challenging time. Some typical uses include:))
- ((paying off your mortgage or other debt))
- ((keeping your business running))
- ((modifying your home to improve mobility))
- ((hiring home care to help you recover))
- ((paying for specialized treatments.))
((If you were unable to work due to an injury or accident causing disability, then how would you pay your mortgage, your bills, and take care of your family? You may have sick leave for several months, but what if you need much longer to recover?
Disability Insurance provides peace of mind that, in the event of disability, you will have a monthly stipend to replace a portion of your salary, whether it’s a short-term disability, or a long-term disability.
Even though there are government plans, such as worker’s compensation or Employment Insurance benefits, the scope of these plans is quite limited in terms of coverage and payout amounts. They may not cover you for all your needs.
Taking out a personal Disability Insurance policy will provide you and your family with living expenses if your disability prohibits you from working. It’s also a good type of insurance to get if you’re self-employed, or aren’t part of group disability plan with your employer.
Keep in mind that your Disability Insurance premium is directly affected by your age, gender, lifestyle (ie. whether you smoke, drink, or exercise), and your type of occupation.))