Major life milestones like getting married or having a child are a cause for celebration. They’re also an opportune time to make some important decisions. Like life insurance: you’ve been told it’s something you should have, but are you sure why? Before you buy, make sure you’re doing it for the right reasons.
When there’s no doubt about it
If you have dependants, life insurance is an absolute must. You have a financial obligation not just to yourself, but also to your loved ones. Providing for their financial security means making sure your finances align with your life and wealth goals—and protecting it all with a suitable life insurance policy.
Deciding what to buy
So you’ve decided you need an insurance policy—but figuring out what product to buy can be a daunting task. That’s why it’s important to do your research. There are a lot of online resources out there, but a financial advisor1 can help you navigate the complexities of life insurance and conduct a detailed financial analysis to determine your exact needs. Plus, an advisor will provide personal service, give you professional advice and spend time going over your options with you—a real bonus, at no additional cost!
In doubt due to debt?
There are plenty of reasons many young families might not have life insurance, usually to focus on paying off short-term expenses like student loans or saving up to buy a house. If that sounds like you, it may be time to revisit your family’s financial priorities. With so much responsibility on your shoulders, it is important to do what you can to plan for any unforeseen future expenses. It’s also good to remember that the middle of a crisis is the worst time to make big decisions, so preparing ahead now can pay off later. A life insurance policy can be used to cover funeral expenses, pay off your mortgage and other debts, provide income replacement for your family, and maybe even pay for your children’s education.
The perfect gift
A life insurance policy may not be what your 4-year-old wants for their birthday, but it’s a practical way to plan ahead for their future needs. By gifting them a permanent life insurance policy, you’re giving them lifetime coverage along with the potential to build cash value that they can use later in life.
The value of advice
Many people don’t like talking about money, and that includes insurance. But a trusted financial advisor can help you get the conversation going and find the right products to achieve your objectives. More than anything, the added value a financial advisor brings is providing a new perspective on how to make your money work for you.
1 A financial advisor is formally known as a financial security advisor in Quebec and a life insurance agent in Ontario.