4 signs you should already have life insurance
Sponsored by: Laura Wierzbicki, BBA, Investment Consultant, Revelstoke Investor Group
Living in the mountain community, we often find ourselves adventuring and participating in adverse mountain activities, but we often forget to plan for unforeseen financial events. When you’re young, you probably don’t think about life insurance. But, if you have a family or people who depend on you, it should be.
Life insurance can help family or dependents replace your income or pay off debt if you die unexpectedly. For anyone who has someone who relies on their income to survive – including children, a spouse, or even a parent – having life insurance is a must.
Ultimately, his income replacement, if someone is tied or dependent on your income and you don’t have enough to provide what they always count on, you need life insurance.
If you don’t have life insurance yet, there are four obvious signs you should
1) you have a family
If you have people who depend on your income to make ends meet every month, you probably should already have life insurance. “You are a father, you are a mother, someone depends on you, but you don’t already have the funds there. This is what insurance provides.
For many families, it’s a good idea to purchase life insurance well before a baby arrives. It’s cheaper to get coverage while you’re still young, and waiting to buy coverage only makes it more expensive.
Whether you buy now or later, parents almost always need life insurance. If it takes two incomes to raise your kids the way you want them, life insurance is the best way to ensure that they will always have access to the money they need.
2) You have made projects with your spouse or partner that depend on your two incomes
Even without having children, life insurance could still help protect your spouse. If your spouse or partner depends on your monthly income, you should have life insurance even if they have their own income.
Couples tend to plan their financial goals together. Whether it’s your retirement plans, a home you own together, or even your daily expenses that you cover with two incomes, protecting your spouse with life insurance is a must.
3) You earn income
For anyone earning a salary, income is always a consideration in the amount of life insurance to be obtained. In general, the more income you earn, the more life insurance you should have. For the typical family, life insurance just makes sense. It’s a very inexpensive way, in general, to provide potential dollars that aren’t there. It’s an affordable way to make sure your family will be supported.
4) you own a house or have a lot of debt
If you own a home, you should already have life insurance. The reason is simple: if you die while you own the house, someone will be responsible. While mortgage insurance from the lender is easy protection (just an addition when getting your mortgage), there are many reasons why a personal life insurance policy might be more suitable for you.
If you were to die and you had a mortgage of $ 500,000, we would need assets to pay it off somehow. If your family relies on your income to pay for it, but if your income stops tomorrow, where does it get that money from?
While the homes can be sold, it could mean a move for your family in an already difficult time. Life insurance could help prevent this. Your home mortgage should be taken into consideration in determining the amount of life insurance you purchase, as well as your income. If something does happen, life insurance could help pay off your home and help your family stay there worry-free.
Insurance planning doesn’t stop with life insurance, we need to take into account any unforeseen circumstances and make sure you are protecting, preserving and supporting your loved ones. We have an extensive insurance offering that looks at all areas that can affect you financially. We offer personal life insurance, disability insurance, critical illness insurance and long term care insurance. For businesses, insurance planning goes one step further, not only do we offer group insurance plans, but we also offer disability insurance, key person insurance and business overhead insurance. If you have any questions about any of these products, don’t hesitate to ask for unbiased advice.
Investment planning | Retirement Planning | Tax and estate planning | Insurance | Mortgage planning
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This column, written and published by Services Financiers Groupe Investors Inc. (in Quebec – a financial services firm) and Valeurs mobilières Groupe Investors Inc. (in Quebec, a financial planning firm) presents general information only and does not constitute purchase solicitation. or sell investments. Contact your own advisor for specific advice on your situation. For more information on this, please contact Laura Wierzbicki | Advisor | IG Wealth Management