Over the past few years, there has been an uptick in ‘Go Fund Me’ pages set up after a loved one dies, in an attempt to secure funeral costs and look after the family left behind. This is not a sustainable way forward, nor is it guaranteed. One of the foundational components of a sound financial plan is getting life insurance. Life insurance is fairly inexpensive and can ensure that the people that you love are not saddled with your debts when you are no longer around. The average Canadian spends close to $58 per month (approx. $15 per week) on life insurance, a little bit more than half of what Canadians spend on coffee per year. There really are no excuses to justify not having life insurance.
If you have family members such as your parents or an elderly sibling who is still somewhat healthy or has just been diagnosed with what is likely to be a terminal disease, you can still find affordable life insurance policies that will give you the financial help you need to pay not only for their funeral costs, but also some of the debts that they leave behind.
There are also very cheap Term Life Insurance policies which you can buy for a loved one, that are especially affordable if your loved one is still in relatively good health.
Why do I Need Life Insurance?
- If you have dependents, life insurance is essential, because it replaces your income when you die. If you can imagine how difficult your life would be if you missed two months worth of paycheques, think about what your children’s lives would be like, without ever having access to your income again – and then add your funeral costs and existing debts to the equation.
- If you have no other assets to bequeath to your dependents, a life insurance policy that names them as beneficiaries is a great way to provide a more solid financial future. This will give you and your dependents some peace of mind.
- If you are taking care of elderly parents or siblings, a life insurance policy can assist you when they pass in paying all expenses related to their funerals and clearing up any of their existing obligations. You can buy a policy on their behalf.
- If you have neither dependents now, nor plan to have any in the future, a good life insurance policy will ensure that none of your family members will be responsible for your debts and obligations when you die.
So When Should I Start?
- The best time to start a life insurance policy is when you are younger, as it can reduce your rates; however, it is worth consideration at any age.
- If you are a non-smoker, have a good driving record and/or are in decent physical health it can reduce your rates. Regardless of your current situation, however, there are options available for you.
How Do I Get Started?
I can help you find the most affordable and most relevant policy for you and your family members. Drop me a line so we can talk about your future.