Updated: Mar 5, 2021
There are four types of people who need life insurance and many of us don’t have enough life insurance to protect our loved ones and our assets.
The first group includes anyone who is a parent. As all parents know, raising children is a huge responsibility. It requires time, patience and money. Without adequate life insurance, your parenting partner may not be able to provide your children with the life that you want them to have. The life that you are working hard to building for them.
The second group includes all current and future home owners who have a mortgage. When applying for a mortgage, banks can insist that you have life insurance to cover your mortgage in the unfortunate event of your death. They will even offer you that insurance as part of your mortgage, even though they know that it’s not the best price or policy available. By purchasing life insurance separate from your mortgage, not only will you save money but your beneficiary is guaranteed the full amount of the policy not just what’s owning on your mortgage.
If you are a partner in a business, then you are part of the third group. When you form a partnership, you choose to work with a specific person, not necessarily with that person’s family. However, if your partner passes prematurely, his or her share of your business will go to their beneficiary unless you can afford to buy them out. By purchasing the right type of insurance, you can ensure that your assets are protected.
Group number four includes anyone who has an investment portfolio and wants to ensure that the full value of their investments go to their estate and not the CRA. Whether you have investment property, registered investments, shares of a business, or stocks, etc. they all come with a big tax bill when you pass. You can offset that tax bill with life insurance which may otherwise require liquidating assets that you accumulated for your loved ones.
The answer to the question “Who needs life insurance?” is, all responsible adults! If you don’t have the coverage you need, you can remedy that with just a few click. Apply today.