Is it still the right life
insurance
coverage for me?
When
major changes occur in your life, you need to take a look at your
life insurance and make sure it still fulfils your needs. Events
like living with a spouse, having a child, divorce, or watching
your children leave home can make a big difference on the type
and amount of life insurance coverage that is right for you.
As your lifestyle is changing, you should make a point to get
your life insurance coverage reviewed, by a licensed insurance
representative. They will do a needs analysis to determine how
much insurance coverage is required. You should also revise the
type of coverage you presently have, and determine which type
would be best based upon your personal and financial circumstances.
For
instance, you should consider revising your family's income replacement
needs. If you were to die tomorrow and you still have loved ones
- a spouse, children, and grandchildren - financially dependent
on you, look at the possibility of extending/renewing term insurance
coverage you already have. If you are retiring, employer's life
insurance plans, or group plans normally give you 60 days from
the date of release/retirement to continue coverage without having
to prove your insurability (answering a medical questionnaire).
Do not miss this opportunity.
Life insurance is also a classic way of creating an estate; it
can be used to pay taxes, or to pay off other debts. This practice
is especially effective as life insurance payouts are not subject
to taxes. A professional financial planner holding the Certified
Financial Planner (CFP) designation can help you develop your
estate plan and determine the type and amount of life insurance
for your estate's needs.
Being adequately insured is important at any age. Take the time
to review your life insurance needs periodically, or when your
situation changes to be sure your coverage is adequate and your
beneficiary designation is up-to-date.
Renée Trépanier, CFP
Education and Communications Manager
SISIP Financial Services, Ottawa
