What is Life Insurance?
Do you have members in your family that are financially dependent on you? Are you worried about the financial impact on them if something happened to you?
Life insurance helps you look after your loved ones by providing the necessary financial security even after you are gone. It is a one-time tax-free payment to your beneficiaries depending on the plan you choose and the regularity of your premium payments. This frees them from the financial burdens while dealing with their most difficult times; by replacing the lost income, pay debts or cover the final expenses and continue to maintain their living standards.
We understand that making such decisions and choosing the right plan is difficult. Thus, FINBIZ Investments will guide you through the right insurance plans based on your circumstances and explain to you the type of coverage involved with each plan. Also, the cost of life insurance you may buy as an individual will vary depending on your age, gender, health, medical history, lifestyle, Term and Sum Assured.
Why Do I Need Life Insurance?
The purpose of life insurance is to protect your loved ones. Should the unthinkable happen, the money from your life insurance policy could be used to take care of living expenses, mortgage payments, outstanding debts and credit card payments, childcare and education expenses, funeral costs, and more. The money could also be left as a gift to a loved one and/or favorite charity or be used to protect the value of your estate and/or business.
How Much Life Insurance Do I Need?
Generally the amount of protection you need is a combination of what it would cost to help your surviving family members and dependents meet their current needs (like taxes, food, clothing, utilities, mortgage payments, etc.) plus future obligations (like college and retirement funding) â minus the resources that your surviving family members could draw upon to meet those obligations (spouseâs income, savings and investments, other income producing assets, and any life insurance you might already own).
You may also want insurance for wealth accumulation or distribution purposes during your lifetime.
What If I Already have Insurance Coverage?
Even if you already have a life insurance policy, itâs a good idea to review it periodically to make sure it still meets your overall needs.
There are times in life you need to look at your financial situation, such as if you: âŊ
- Were recently married or divorced. âŊ
- Had or adopted a child (or became a grandparent)
- Have children or grandchildren who are about to enter college.
- Provide care or financial help to a child or elderly parent.
- Received an inheritance.
- Retired or your spouse has retired.
- Started a business.
- Changed/lost your job or salary.
What are The Different Types of Life Insurance Available?
In todayâs fast-moving scenario, life insurance has become a necessity, and choosing the right type of insurance has become an essential part of a comprehensive financial plan, for most Canadians. Letâs understand the different types of life insurance in detail.