Life insurance is all about caring for someone else. In essence, there are two reasons to own life insurance:
You want to protect the future of those financially dependent on you in the event you should die prematurely.
You want to increase the wealth that you leave behind for heirs and organizations that you care about.
PROTECTING LOVED ONES
If you are a breadwinner in a family, the need for life insurance becomes apparent. In the event that a breadwinner dies, often the ongoing cost of living for the surviving family members is not sustainable. Life insurance proceeds can solve this problem, providing cash to pay down mortgage and other debts, educate children and supplement income needs during the dependent years. In most cases, term insurance is the appropriate solution with low costs and terms that are typically either 10 years or 20 years to allow for the best coverage of the years in which the risk will exist.
LEAVING A LEGACY
Increasing wealth to create a lasting legacy is usually an idea that becomes important in the years following the raising of a family and accumulating assets for a comfortable retirement. When it becomes apparent that your assets will outlive you, most begin to wonder how tax planning can ensure that a larger estate is created, and look for other ideas to create a legacy for children, grandchildren, and the causes they hold most dear. Once again, life insurance can play a valuable role here, this time in the form of permanent insurance, which is designed to remain in force for the duration of one s life at premiums that are predictable and sustainable. Permanent insurance creates an instant estate, and most importantly receives preferential tax treatment in Canada, making it an extremely attractive investment strategy when it comes to legacy creation.
In the context of your financial plan, we will examine all of the ways that insurance can and should be used in your unique situation, and ensure that you are presented with the best solutions at each stage of your life, and more importantly, that consideration is given to integrating these solutions to seamlessly move from one stage to the next without the need to revisit (and requalify for) the appropriate life insurance solution at multiple times.
If you would like to find out more about how life insurance might play a role in your financial future, please contact us for a no obligation appointment at your convenience.