Life
Insurance Facts
It’s
difficult to imagine needing personal life insurance while you’re young
and in good health. But, if anything should happen to you, it can help protect
your spouse, loved ones and estate. Some personal life insurance policies
can also offer you access to funding during your life, such as for buying
a home or educating your children.
What
is Life Insurance?
Life insurance is a contract with an insurer, that promises a set
amount of money will be given to your beneficiary upon your
death. Your benefit amount depends upon many factors including the policy
you choose, your age, sex and health, and the amount of premium you pay.
These are the types of details you’ll discuss with an advisor so that
the right policy can be selected by you, from those with fixed coverage
and
specific terms to those with greater flexibility.
Why
Do You Need Life Insurance?
Life insurance can give you peace of mind knowing that, if something should
happen to you, your loved ones won’t be left with a legacy of debt,
final taxes or other money worries. Certain life events might cause you to
re-evaluate your financial goals and consider the protection life insurance
can provide. Some of these include getting married, buying a home, having
children or planning for your retirement. With an appropriate plan, life
insurance can help you meet your goals in life and protect your family when
you no longer can.
As
well, certain business situations call for life insurance. If you’re
an entrepreneur or just starting a business you’ll need to protect your
enterprise and any partners. A uniquely tailored insurance solution can also
provide the money necessary to enable your fellow shareholders or partners
to buy you out when you’re ready to retire.
Choosing
the Right Life Insurance Policy
Choosing the right policy can be a confusing process.
Some
questions you should ask yourself are:
- Will the policy meet my current needs?
- Will the policy provide the flexibility to meet my future needs?
- What does the policy cost––both current and expected lifetime
costs?
- Is the provider established and financially strong?
- Will the company back its guarantees?
Insurers
offer two life insurance categories for you to choose from: term and
permanent insurance. Both can be tailored to meet your financial
needs.
Term
Life Insurance
If you’re looking for basic insurance coverage for a specific period
of time, term insurance is a good place to start. It’s a cost-effective
and simple plan, with some flexibility to adapt to your long-term goals.
Over time, your needs may change. Term life insurance can evolve with your
needs by providing options to lengthen your coverage period or even to
transfer to a permanent life insurance solution.
Permanent Life Insurance
If your financial objectives include more than basic insurance coverage,
you may benefit from this option’s added investment potential. Permanent
insurance solutions allow you to insure against the unexpected while increasing
the value of your investment over time. Plans are flexible and can be
tailored to the level of investment potential and insurance coverage to
meet your
personal
financial goals. You can also select a plan that gradually minimizes insurance
coverage so you can maximize your policy’s investment potential.
Get a Free Term
Life Insurance Quote
Back
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Ivon T. Hughes, The Hughes Trustco Group Ltd.
Online Insurance Broker - Get a FREE Quote TODAY!
Tel: (514) 842-9001 Email: info@trustco.ca
Web: http://www.trustco.ca
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