National Life Insurance Day: Protect Your Family’s Future
Life is full of uncertainties, but with the right plan in place, you can ensure that your loved ones are protected, no matter what happens. The importance of life insurance cannot be overstated, as it shields against the unpredictability of life's twists and turns and is a cornerstone of security and peace of mind.
According to the Life Insurance Marketing and Research Association, only 44% of all Canadian households have life insurance coverage, and 23% of Canadians do not consider themselves very knowledgeable or knowledgeable at all on the topic. Additionally, “more than a third of those without life insurance say they haven’t purchased it because they are unsure how much they need or what type to buy.”
May 2nd, 2024, is National Life Insurance Day, an excellent opportunity to provide education on this topic. At W.C. Burgess, we understand the importance of securing your family's financial future, and we're here to guide you through the world of life insurance and the different types available.
Why Life Insurance Matters
Protect Your Loved Ones: Life insurance provides a safety net for your family in case something unexpected happens to you. It ensures they have the financial support to maintain their lifestyle and cover expenses like mortgage payments, bills, and education costs.
Settle Debts: If you have outstanding debts, like loans or credit card balances, life insurance can help settle them, so your family isn't left with a financial burden.
Replace Lost Income: If you're the primary earner in your family, life insurance can replace your income if you pass away, ensuring that your loved ones can continue to meet their financial needs.
Estate Planning: Life insurance can also be a valuable tool for estate planning, providing liquidity to cover expenses like estate taxes and ensuring that your assets are distributed according to your wishes.
Business Continuity: If you own a business, life insurance can help ensure its continuity by providing funds to cover expenses or compensate for losing a key employee.
Types of Life Insurance
Term Life Insurance: Term life insurance is the simplest and most affordable type. It provides coverage for a specific term, typically 5 to 30 years. The beneficiaries receive the death benefit if the insured dies during the term. However, the policy expires without payout if the insured outlives the term.
Whole Life Insurance: Whole life insurance provides coverage for your entire life and builds cash value over time, which can be accessed through loans or withdrawals. It guarantees death benefits and stable premiums, making it a popular choice for long-term financial planning.
Universal Life Insurance: Universal life insurance offers flexibility in premium payments and death benefits. Policyholders can adjust their premiums and death benefits according to their changing financial needs. Additionally, universal life insurance accumulates cash value, which earns interest over time.
Variable Life Insurance: Variable life insurance allows policyholders to invest their premiums in various investment options, such as stocks, bonds, or mutual funds. The cash value and death benefits of variable life insurance fluctuate based on the performance of the underlying investments. While it offers the potential for higher returns, it also carries greater investment risk.
Indexed Universal Life Insurance: This type of insurance combines the flexibility of universal life insurance with the opportunity to earn interest linked to a stock market index. It offers growth potential with protection from market downturns.
How to Choose the Right Policy
In honour of National Life Insurance Day, we encourage you to explore these coverage options with one of our experienced brokers to find the best fit for your family's needs. It's a great opportunity to reflect on your responsibilities and make informed decisions that align with your long-term goals. For more resources on life insurance, visit the Canadian Life & Health Insurance Association.
Have questions about life insurance or looking for a free quote? Contact us today at 613-342-1405 or info@burgessinsurance.ca. You can also visit our Life Insurance page for more details. At W.C. Burgess, we’re here to help you every step of the way!
