budget

Financial Friday: Life Insurance

Hi guys,

It’s financial Friday and I can’t stress enough how much of a gift it will be to your family for you to ensure that you have life insurance.

I’ve heard that life insurance is a waste of money and I suppose that this could be true – until you need it.  Most policies won’t cover a pre-existing condition or a sick person, so the time to get the insurance is now, before you are ill.

There are really only two parts to life insurance – the premium, or fee, that you pay when you are alive, and then the death benefit, or payout when you die.  You will need to do your research to determine, from the many great companies out there, how much payout you need and balance it with a premium that you can afford.  

Whether you choose term life insurance, which is available in increments of 10, 20 and 30 year terms, or permanent life insurance, please just make sure you’re covered to help those around you. 

Funerals cost a lot of money, in fact the current cost in Canada for cremation with a ceremony is about $4000 and a burial with ceremony is about $5500.  This doesn’t cover the taxes and estate fees which will be charged by the government after a death, either.  Not to mention, if the person who passes away has debts that need to be covered.  Life insurance can cover all of these concerns and unburden the family left to mourn instead of worrying about money at a very difficult time.

Amy

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