The Priceless Benefits
of Continuing Life Insurance
Life
insurance is never for you…it is for your loved ones. The
amount your family will need, should you die, is based on many
factors. Only you, along with a licensed life insurance representative,
can assess these needs and determine if, and for how many years,
your family will require replacement income.
At various stages in our lives, we should revisit our life insurance
coverage to ensure that it is still adequate. Needs will change
should you marry, divorce, have children, or your children leave
home. In the military, many members take their release as early
as 40 years of age. It is therefore important to contact your
insurance representative to ensure that your family will continue
to have financial stability if you should die.
Do you still need life insurance?
Here are a few elements to reflect on:
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If you share your life with
someone, how much do you contribute to the family budget?
If you die prematurely, will your survivors - your spouse
and especially your children - be able to manage financially?
Will they have a good start in life? |
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Do other people depend on
you financially: parents, grandparents, brothers or sisters? |
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If you are a single parent,
what financial support do you provide and to whom? How will
this support be maintained when you die? |
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If you have a mortgage, do
you wish the balance of the mortgage to be reimbursed in
the event of your death? |
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If you have children, do
you wish to ensure that they can continue their education
after your death? |
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Do you wish to leave money
to other family members or to specific organisations? |
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Could life insurance play
a role in the transmission of a business? |
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Could life insurance be used
to pay the estate tax? |
If you have answered yes to one of these questions, unless you
have enough money saved to make up for the loss of income at your
death, life insurance remains the only way to provide your family
with adequate financial protection so that they can continue to
live in the manner they were accustomed to.
To ensure prompt payment of benefits upon death, it is very important
to make sure that the names of the designated beneficiary(ies)
on all your life insurance policies are up-to-date. If you wish
to change your beneficiary(ies), contact your insurance representative
or your broker to get the necessary form.
Finally, when reviewing your life insurance needs, also look
into getting a will if you don't have one or, if you have one,
review it to ensure it is up-to-date. You should also take the
opportunity to review your power of attorney. Remember, ensuring
your life insurance coverage is in order today will guarantee
peace of mind for your loved ones for the future, and give them
the security they deserve.
Written by Renée Trépanier, CFP
Education and Communications Manager
SISIP Financial Services, Ottawa
