Life insurance is an essential component of financial planning, and it is crucial to have one to protect your loved ones in case of an unexpected event. In Canada, life insurance provides financial support to the beneficiaries of the policyholder in the event of their death.
How does a life insurance work?
When you purchase a life insurance policy, you pay a monthly or annual premium to the insurance company. In return, the insurance company promises to pay out a sum of money, known as the death benefit, to your beneficiaries upon your death. The amount of the death benefit depends on the type of policy you choose and the amount of coverage you need.
Why is it important to have one?
Life insurance is important because it provides financial protection to your loved ones in case of your untimely death. If you are the primary breadwinner in your family, your death could leave your loved ones without the financial resources they need to pay for essential expenses, such as mortgage payments, car loans, or your children’s education. Life insurance can help ensure that your family is financially secure even after you are gone.
Who should own one?
Anyone who has dependents, such as a spouse, children, or aging parents, should consider purchasing a life insurance policy. Additionally, anyone with significant debts, such as a mortgage, car loan, or credit card debt, should consider a life insurance policy to protect their loved ones from inheriting these financial obligations.
How young can you buy one?
You can purchase a life insurance policy at any age, and the younger you are when you buy one, the more affordable it can be. Typically, people start considering life insurance when they start a family, but even single individuals can benefit from a policy to cover end-of-life expenses and any outstanding debts.
In conclusion, life insurance is an essential component of financial planning and is something that everyone should consider. It provides financial security to your loved ones in the event of your untimely death, ensuring that they are protected from any financial hardships. Contact your FORTAX advisor today to find the ideal life insurance policy that fits your needs and budget.