Importance of Life Insurance Policy
May 18, 2022
According to recent studies, one-third of Canadians are without any life insurance, and 1 in 4 millennials admit that it is highly unlikely that they will purchase any type of insurance soon. However, if you are reading this blog, chances are that you are interested in this topic and want to understand if life insurance can help you with your financial issues. That’s why this blog is written with that concern in mind for many Canadian regarding whether they should invest in life insurance? What are its benefits? You may have the basic idea that if you have life insurance, your family will still have financial support even under any circumstance you pass away. This policy reassures you that your family will have the resources to carry on without you; but what else? Read on to find out.
Life insurance- a policy that you must consider
Think of life insurance as an important part of your financial strategy. Once you purchase it, you have confidence that your family can avert any type of financial crisis in your absence. It can act as a safety net by helping in replacing your income or serving as an inheritance for a dear one. There are several products available in the market, and you can choose a policy that meets your financial requirements. For example, with whole life insurance, you get the advantage of getting insurance coverage for life and a growing cash component that you can use. If you need help, you can hire professional life insurance brokers. InsLyf Brokerage is a good option if you are looking for life insurance in Mississauga. All you have to do is schedule an appointment with them to discuss your needs.
The advantages of life insurance
Coming to the advantages of life insurance, that can be a very long list. However, for your convenience, we have summed it to a shortlist below. Here are some important reasons why you should invest in life insurance, have a look:
Allowing your dependants to maintain a standard of living: Although no one likes to think about it, life insurance can be critical if you are married with children. Considering how the future is always uncertain, it’s important to understand what your surviving partner would need to manage daily expenses and savings for children’s education.
Clearing debts and mortgages: Your life insurance can provide the funds for your partner to clear the mortgage on the property as well as loans and dues in your absence. Depending on the size of your policy, it can allow them to pay off the entire balance amount on the mortgage at once.
Caring for your parent: Life insurance policies are not just for people with children. If you are the primary caregiver of an elderly parent, with this policy in place, you will not have to worry about their finances if you are diagnosed with a terminal illness or pass away.
Coverage for your business affairs: If you have a business partner, it’s a good idea to have life insurance on each other should one of you die. The death of a business partner can potentially have a severe negative impact on the business, as their contribution to the company is lost when they pass away. You can use the life insurance policy to cover operating costs and ensure that the business continues to be profitable.
Inheritance: You can leave the death benefit of your life insurance as an inheritance to a loved one. You can put their name as a beneficiary in the policy contract and it ensures that when you pass away, the benefits fall into the hands of the person that you intended for.
Charity: Life insurance policies can also be created with your favourite charity as a named beneficiary. This way, you ensure that your philanthropic goals are met after you pass away. The benefits are provided to a charity of your choice.
We hope that this blog has made you understand why life insurance is important. Life insurance is always a sensitive topic, and it’s advisable to speak with professionals before you pick one. If you are living in Mississauga, you can speak with the team at InsLyF Brokerage. They will be more than happy to help you. Put a financial safety net around you and your family; apply for life insurance today.