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Life Insurance For Family - Orr Insurance & Investment

For Family/Business Protection

Deciding what to leave your loved ones if you pass away is not something that should be taken lightly. In the unfortunate instance where you pass away, making sure you leave your loved ones with an adequate amount of money to settle your affairs and help them continue the same standard of living doesn’t have to be a daunting task.

Life insurance is a very important decision for individuals and business owners, and protecting your family or business from significant loss is something we take very seriously at Orr Insurance & Investment. Our Brokers will help you find the most appropriate and cost effective way to protect your most important assets.

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

Term Life Insurance Permanent Life Insurance
10, 20, 25, or 30 year term insurance means that after 10, 20, 25 or 30 years the premium will increase if you renew the policy – the insurer has to renew your policy though, even if you’re uninsurable. At that time our Brokers would look at getting you a new policy for a better price or converting to a permanent policy. Universal Life, Whole Life and Term-to-100 are permanent life insurance policies. There are many different ways to structure permanent life insurance policies, but most will have a level premium for life, and once you reach age 100 you would not be charged a premium anymore. These types of policies can also build a cash value, allowing you to cash out later on or stop paying premiums.

Frequently asked questions

Question MarkCan I purchase life insurance if I already have some in force?

    Definitely. Insurers will look at your entire in force amount of coverage, but you can always replace an existing policy or purchase additional life insurance.

Question MarkWill the life insurance coverage amount go down with my mortgage?

    No. An individual life insurance policy through our Brokers will not go down as you pay off your mortgage – the amount of coverage will stay the same unless you change it.

Question MarkIf I buy life insurance for my mortgage, does the bank receive the proceeds?

    No. When getting life insurance through our Brokers, whoever you name as beneficiary will receive the death benefit proceeds in a lump sum, tax free.

Question MarkCan I change my beneficiary after the policy is in force?

    Yes. You can change your beneficiary(s) at any time.

Question MarkCan I increase my coverage amount after the policy

    Yes – you will have to answer health questions to do so, but it is absolutely an option.

Ask our Brokers

Proudly serving southwestern Ontario, we are local, personal and available – family owned and operated, we live in the communities we serve so we care about our clients. Our job is to find you the best competitive combination of price, value and service from over 60 Canadian insurance and investment companies.

Your Orr Insurance Broker can help you determine the appropriate life insurance for you and/or your family, provide tips on how to prepare for retirement, and shop the market for the policy options and premiums that work best for you.

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