People often talk about life insurance as a must-have. But why? What exactly is life insurance for? Which life insurance products are right for you?
Let’s take a look at why you should buy life insurance, when you should buy it and how to choose the right product.
Life Insurance: Think of your Loved Ones
Unfortunately, neither you nor anyone else can predict when and how you will die. However, you can prepare for this eventuality; with the right life insurance, you can have peace of mind knowing that your loved ones will receive financial support when you die.
Unfortunately, neither you nor anyone else can predict when and how you will die. However, you can prepare for this eventuality. With the right life insurance, you can have peace of mind knowing that your loved ones will receive financial support when you die.
This type of insurance is in fact a tax-free payment to your family to relieve them of any financial burden that may be caused by funeral expenses, the mortgage on your home and your debts. The payment can also allow your loved ones to take a break from their grief, such as taking time off work.
When Should you Take Out Life Insurance?
At 20 years old, you might think “this is not for me; I’m in great shape”… But think again! You may be taking out loans and grants and using a credit card. Your parents will have to pay them back. To help them out, it wouldn’t hurt to have a little life insurance, depending on your means, which would give your family a death benefit. In your twenties, your premium is also less expensive, since it is established according to your age, your sex, your lifestyle, your state of health, etc.
At age 30, mortgages and children bring on greater financial responsibilities. At this point, you should adequately protect yourself with life insurance. Your group insurance at work may already provide you with protection, but it certainly doesn’t cover all your commitments. If necessary, you may want to consider purchasing additional insurance.
At age 40, 50 or 60, you probably want to plan your retirement or prepare your estate. Of course, to do this, you need more coverage.
Which Life Insurance Product to Choose?
Now that you know that life insurance is for you, here are some of the products available at Lussier.
Permanent Life Insurance
Permanent life insurance is coverage that lasts until your death. It is ideal for paying your funeral expenses upon your death or passing on an inheritance.
Term Life Insurance
Term life insurance covers a predetermined period of time (e.g. 10, 20 or 30 years) with an end date. It is ideal for the time it takes to pay for expensive items for which you have to make recurring payments, such as your children’s education, a house, a boat or a car.
Universal Life Insurance
Universal life insurance is an all-in-one product that acts as both a hedge and a savings vehicle for the duration of your choice, all tax-free. It’s ideal for growing your assets while paying for your funeral expenses or expensive possessions upon your death.
Funeral costs vary greatly depending on the facility and method of burial, ranging from $3,500 to $12,000 in 2021. When you die, your mortgage payments will continue to be due and so will the debts on your car, for example.
The math is simple: if all these costs add up to more than you have, you should buy life insurance as soon as possible.
Even if you have an idea of the life insurance products available to you, there’s no substitute for the personalized guidance of an advisor. To get a clearer picture and choose the right product for your lifestyle and financial situation, consult the experts at Lussier.
