Blog Article

24 Feb 2023 | Life Insurance

MAKE INSURANCE WORK FOR YOU
PART 1. TERM INSURANCE

Education and research are two key elements in any decision. Most people know they need Life Insurance. Generally, the reason is to protect a spouse and/or children should the worst happen. You want to make sure that they continue to live in the world you’ve created.

Where I find people struggling is with the amount needed and the length of the term if that is the route they choose.

For the amount, I advise clients to not look at it as Life Insurance. Instead, look at it as an income replacement for your family. As an example, using simple math; if your income is $100,000 per year, over a 10-year period, that is a total of $1 million. $1 million dollars that your family would not be receiving if you passed away.

For the length of the term, if applicable, I sometimes equate that to the age of your children. For example. If you have a child that is 2 years old, the next 20 years are vitally important to them should something happen to you. A 20-Year Term Life Insurance policy may be the best option. You can lock in the price now knowing that it will stay the same each month for the next 20 years.

By the same token, if the child is 12, you may want to consider a 10-year Term. The thinking is that by the time the child reaches age 22, in my example, they have likely finished school, are working, and are able to support themselves.

If children aren’t involved Term Insurance is still the preferred option to cover a large debt like a mortgage, line of credit, or loan. Term Life Insurance is the most economical form of protection. You can get a higher benefit amount at a lower cost for a defined period of time.
Is Term Insurance your best option? Maybe. Maybe not. When you decide to invest in Insurance it’s vital to understand what, you, are trying to accomplish. We help provide solutions with that one goal in mind.

Our Services:

Benchmark Insurance Ltd, is a niche insurance agency providing Life, Critical Illness, Long-Term Disability, and Group benefits to individuals and businesses throughout Ontario. Please let us know how we can help. info@benchmarkinsurance.ca 647-955-1242

By: admin

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