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Life insurance, who needs it?Generally, you need it if someone depends on you financially. Most of us Canadians need life insurance. The best way to figure out if you do is to ask yourself how your loved ones would fare financially, should you die prematurely. Would they have the money to pay for your final expenses (e.g., funeral costs, medical bills, taxes, debts, lawyer’s fees, etc.)? Would they be able to meet ongoing living expenses such as the rent or mortgage, food, clothing, transportation costs, etc? What about long-range financial goals? Without your contribution to the household, would your surviving spouse be able to save enough money to put the kids through college or retire comfortably? Specifically you need life insurance if: |
Most families depend on two incomes to make ends meet. If you died suddenly, could your family maintain its standard of living on your spouse's income alone? Probably not. Life insurance makes sure that your plans for the future don't die when you do.
As a single parent, you’re the breadwinner, the caregiver, cook, chauffeur, and so much more. With so much responsibility resting on your shoulders, you need to make doubly sure that you have enough life insurance to safeguard your children's financial future.
Most single people don't need life insurance because no one depends on them financially. But there are exceptions. For instance, some single people provide financial support for aging parents or siblings. Others may be carrying significant debt that they wouldn't want to pass on to family members who survive them. An other good reason to have insurance now that you are young, is the low cost of it at earlier ages and your health status, which might deteriorate as you grow older. Also a good plan selection will provide some cash for you when you might need it, even could enhance your retirement savings.
Besides taking care of your family, life insurance can also protect your business. What would happen to your business if you, one of your partners, or perhaps a key employee, died tomorrow? Life insurance can help in a number of ways. For example, a life insurance policy can be structured to fund a "buy-sell" agreement. This would ensure that the remaining business owners have the funds to buy the company interests of a deceased owner at a previously agreed upon price. That way, the owners get the business and the family gets the money. To protect a business in case of the death of a key employee, "key person insurance," payable to the company, provides the owners with the financial flexibility needed to either hire a replacement or work out an alternative arrangement.
Did you know that depending on the size of your estate, your children could be hit with a large capital gains tax after you and your spouse die? The tax- free proceeds of a life insurance policy are payable immediately, allowing your heirs to take care of these taxes, funeral costs, and other debts without having to hastily liquidate any assets, often at a fraction of their true value.
Whatever your reasons are for buying life insurance, we, at In Step Insurance Services, will do our best to provide you with the best insurance solution available among the various insurances companies that we are associated with, with main emphasis on matching them with your short term or long term needs.
All you have to do is contact us and ask for more information.
