Life Insurance

Mortgage/Debt Protection

In the event you pass away, who will be left making your mortgage/debt payments? We often suggest purchasing 10 or 20-year term life insurance to cover any major debts like mortgages, car loans, student loans, etc. Considering we’re talking about you not being here anymore, an important thing to think about is the payments your surviving family will inherit, typically the biggest being your mortgage payments.

Purchasing life insurance to cover a mortgage or large debt will help alleviate the strain of having to continue to pay that mortgage when you are gone.

Income Protection

Will your surviving family be able to continue the same standard of living without your income? This reason for purchasing life insurance ties into the above reason. If you only cover your mortgage with life insurance, what about everyday expenses your surviving family will need to continue paying without your income? Things like groceries, daycare, utilities payments, etc.. We will sit down with you and decide on a number that will leave your family with peace of mind that they will be taken care of for years after you pass away, and won’t have to worry about getting by on one income.

Child Education Fund Protection

Would you like to pay for your children’s education in case you pass away? If you have young children who plan on going to college/university, you can leave them money to pay for school in the event you pass away. Aside from a mortgage, one of the longest standing debts a person will have is a student loan. Think of how better off your children would be if their school was paid for and they were able to begin their lives debt free right out of school.

Your Broker will show you how life insurance can:

• Create an estate: Where time or circumstances have kept the estate owner from setting aside sufficient assets to provide for surviving loved ones, life insurance can create an ‘instant estate’ that can alleviate financial worries during an already trying time.
• Pay estate taxes and other estate settlement costs: The costs of settling an estate can vary from a low of 3% to over 50% of the estate’s value. A life policy can cover those costs in your absence.
• Fund a business transfer: Business owners often contract to buy a deceased partner’s share from their estate. A life policy can provide the ready cash to finance that transaction.
• Protect a business from the loss of a key employee: The untimely death of a key employee can seriously disrupt a business. A life policy can give the company financial leeway to find the right person for their role.
• Replace a charitable gift: Charitable Remainder Trusts provide tax benefits, and a life policy can replace the value of a donated asset. Life policies can also be paid directly to a chosen charity.
• Guarantee loans: Personal or business loans can be paid off with insurance proceeds in the event of the borrower’s death.
• Equalize inheritances: When a family business or farm passes to children who are active in it, life insurance can provide equalizing amounts for other children.

Life insurance is more than a financial safety net for your loved ones – though it certainly is that. It’s also a unique financial asset that can solve some of life’s more perplexing financial problems, and it offers the potential of high yield and tax-favored benefits. And you might be surprised at how low the carrying costs are.

Types of Life Insurance Policies