Canadians generally agree that life insurance is an important part of a financial security plan. However, many are not sure what are the advantages of life insurance or where to find out more information and purchase it.
#1 You Never Know What Could Happen
There is no Magic 8-Ball when it comes to future financial losses and health risks. The risk s of life can strike financial disaster at any time without warning. Insurance protects you for the unknown and gives you peace of mind. You should be prepared and insured to cover any future unexpected circumstances.
#2 Financial Benefits During Your Lifetime (An Alternative Investment Vehicle to Build Wealth)
Some people think life insurance pays only if you die. That’s not always true. With permanent life insurance, you can build up cash value, or equity, in your policy, which you can access it tax-free during your lifetime for your big expenses, cash in an emergency, children’s education, or retirement income, etc. What’s more, you can accumulate this cash value on a tax-advantaged basis.
- Do you know?
Participating life insurance outperforms traditional investments like GICs, S&P, or stocks – even in absolutely awful investment climates, as we saw in 2008-2009. The insurance companies’ investments held steady, enabling them to pay dividends even in the worst of times. One of the insurance companies has paid a divided for over 140 years and has never missed a payment. It’s hard to beat that kind of consistency with any other kind of product.
#3 Getting Locked In At Lower Rates
Many life and health insurance rates start to skyrocket after age 60. If your health deteriorates, you may have limited options or ineligible later in life.
#4 Protect Your Standard of Life and The People You Love
You have worked too hard for too long to let everything you have earned just slip away from you. Many people have been forced to drastically change their lifestyle choices because they did not have adequate insurance coverage to meet their current standard of living.
#5 Money in Hand – Quickly
Your beneficiaries can get the life insurance money within days of the insurance company receiving the required information. By contrast, savings and other assets can be tired up legally for some time.
Insurance policies should be reviewed on an annual basis to make sure coverage levels are kept current and up to par.