Nine critical times you need life insurance, the most will give you a better perspective of the importance and necessity of life insurance. Life insurance is a product of need which means the majority of people buying life insurance need this product for a specific reason.
People consider purchasing a life insurance policy for many reasons, and in this article, we will look at nine critical times that life insurance is purchased. If one or more of these situations are applied to you, we recommend you consider acquiring a life insurance policy.
These are the nine critical times in life when you need life insurance the most:
Getting married
Buying a house with a mortgage
Having a child
Becoming stay-at-home parent
Supporting ageing parents
Taking out a loan
Becoming Self-employed
Starting a business
Estate planning
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Let’s dive into these critical times of life to understand the need for better life insurance.
Getting married.
Marriage is a new chapter of life, and it is the beginning of forming a life with our significant other. With marriage comes responsibilities; you and your partner are trying to build a life, and both partners must be sure that they have sufficient financial protection in case something happens to them.
Many may not even want to think of death when starting a new life which is absolutely understandable; however, partners build a life together, and they share financial obligations. Therefore, it is absolutely crucial to minimize the financial risk that an untimely death can cause by purchasing a life insurance policy.
Buying a house with a mortgage.
A mortgage is perhaps one of most people’s biggest financial liabilities. Since it is a long-term liability and the loan amounts are usually high, having a life insurance policy to cover the mortgage amount is a must.
Purchasing a life insurance policy is especially important for the life of the family’s breadwinner since they are the main income earners. If they pass away, the surviving dependents will face financial hardship. Therefore, if you have a mortgage, a life insurance policy will provide you with peace of mind that your loved one will be fine if something happens to you.
Having a child.
If you already have a child, you know you will do everything to make sure that they are living comfortably until they can start making a living and get their career going. Having a child means you are responsible for another life that depends on you. Therefore if something were to happen to you, a life insurance policy could ensure your child’s financial well-being.
Becoming a stay home parent.
Stay-home parents need life insurance. Most people see life insurance as protecting the family against losing that family’s breadwinner, which is true. However, life insurance is a tool to protect your loved ones against any financial loss and cover all liabilities in case you die. Let me put it this way if you are a contributing member of your family. This means you are earning money or taking care of the house and your family; you do need to have a life insurance policy.
Therefore, stay home parents need life insurance to ensure their family will not suffer any financial loss. This way, the family’s breadwinner can keep working the same way as before, and the children will be looked after.
Supporting ageing parents.
Purchasing a life insurance policy for ageing parents is a wise idea. Although no one wants to think about their parents passing, parents are more likely to pass away before their children. You have every right to even fear this thought and want to avoid thinking about it. However, many facts suggest that no matter how uncomfortable this topic might be for you, you need to consider life insurance for your elderly Mom or Dad.
There are many reasons for buying life insurance for your ageing parents, such as to cover the cost of the funeral and final arrangements, To help pay for their medical bills, To move the surviving parent, To pay the estate tax, leave a legacy and take care of any dependents they may have.
Taking out a loan.
There are many different types of loans that we might take out during our lives, but no matter what, it is wise to protect our estate and loved ones from the financial burden if something were to happen to us. The concept is quite similar to having a mortgage. Now the size of the loan and whether our loved ones will be responsible for it when we pass away is important.
However, remember that the creditor usually will take the money they owe from your estate. As a result, the amount on the loan that has not been paid will be taken from the estate when you pass away. Therefore, if you want your debt to be settled upon your date and prevent any complications on your estate, make sure to have enough life insurance coverage to take care of your loan balance.
Becoming Self-employed.
Life insurance is very important for the self-employed since they do not have any life insurance coverage through work. Being self-employed has its advantages, no doubt; however, if something were to happen to you, the surviving dependents would suffer financially. As a self-employed, you will have good and bad financial years, and proper life insurance can benefit you during your life and your loved ones when you are gone.
Starting a business.
For business owners, life insurance has different uses. Depending on what the goal is, a business owner should choose the appropriate life insurance type. Protecting loved ones, as always, is one of the reasons for a business owner to purchase a life insurance policy. Business owners might also consider life insurance for the buy-sell agreement if needed.
Estate planning.
The most income tax most people ever have to pay is upon their deaths. When you pass away, your estate will pay your last income tax, and the deemed disposition of your assets will occur. There is also a matter of loans and debts which your estate is liable to pay and settle the debts. You must also consider legal fees that will be added on top of everything.
Since your estate is liable to pay all of that, if the heir cannot afford to pay everything, all the assets will be sold, and after government and creditors take their money, the rest will go to your heir. The best solution would be to have life insurance so your heir can settle everything and keep or sell the assets at the right time.
Conclusion
If you are at any of the mentioned nine critical times, you need life insurance, and you should consider purchasing one immediately. Identifying what type of life insurance coverage you actually need may look complicated. However, there are many ways that you can learn what type of life insurance suits your needs and calculate the coverage amount you need.
How to obtain life insurance online?
As for the policy type, it is always smart to consult with an advisor and ask them to run a need analysis and find out the life insurance type that works for your situation based on your needs. However, you also have the option to go online and use online software to learn a bit more about your needs. For example, you can use AplusWealth’s online platform “get covered” to know what type of life insurance you need.
Besides using the services of a professional broker or insurance consultant, online services can get you a quote from several Canadian insurers. It is always a smart idea to compare rates and companies before purchasing your policy, and you can do so by visiting the AplusWealth life insurance page.
You can also contact us and ask questions.
Apluswealth Inc. built this software for one reason and one reason only, so Canadians can find an affordable and reliable life insurance policy to protect their loved ones.
Whether you know the life insurance you need or need help finding the right life insurance policy, AplusWealth Inc. will get you covered.
Go to Get Covered and get life insurance quotes in under 1 minute and compare the rates of the best Life insurance companies in Canada.
