Talk Life
urance
Death does not mean debt free. Your debt could become a tremendous
burden, on top of the already emotional toll your absence creates in your
family members’ lives. Life insurance can cover these expenses without
financial hardship or further stress.
Life Insurance isn’t just for individuals. It can protect a business from
financial loss, liabilities or instability in the case of the death of a
business owner/partner. Whether providing necessary short-term cash or
providing a replacement for the potential income lost when a key partner
goes, life insurance can be invaluable in maintaining the business you’ve
worked so hard to build.
Life insurance is a special financial asset, which can help increase your
credit and aid in obtaining a loan from a lending institution. Many
policies have cash value, which even in the case of bankruptcy cannot be
touched by creditors.
HOW ABOUT SUPPLEMENTING
YOUR RETIREMENT?
You can use life insurance to ensure your retirement savings last as long
as you do. One insurance product that can provide pension like benefits
is an annuity; this is where you invest a certain amount of money and in
return you get a guaranteed stream of income monthly, for as long as you
live.
DO YOU CARE ABOUT A CAUSE?
Life Insurance can enable you to leave a lasting gift to a favorite cause or
charity that is much larger than you would otherwise be able to donate.
SOME BENEFITS OF HAVING LIFE INSURANCE
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Younger is cheaper, because life insurance premiums usually
increase with age. Try not to delay purchasing life insurance as it
may become more of a financial burden. It is also important for you
to act early in the event ill health happens, this is because you may
not be able to get life insurance to the extent you need it, or at all.
Being diagnosed with a terminal illness while covered by life
insurance will provide financial support based on the terms of your
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policy.
Life insurance can also be used in case of emergencies by
requesting a withdrawal of cash values accumulated on the policy.
SO WHAT STEPS DO YOU TAKE NOW?
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UNDERSTAND WHY YOU NEED IT
INCREASE YOUR KNOWLEDGE: Research.
CONSULT A LIFE INSURANCE PROFESSIONAL.
DETERMINE THE AMOUNT OF COVERAGE YOU NEED
FIND THE RIGHT TYPE OF POLICY
CHOOSE THE RIGHT COMPANY
MAINTAIN YOUR PREMIUM PAYMENTS
Life insurance is a big purchase and one that can stay with you for
many years. If you have an old policy lying around, consider having
it reviewed by your financial advisor. It may make sense to buy more
insurance (especially if your circumstances have changed in the past few
years). Finally, even if you have a group life insurance policy through
your employer, do NOT assume that it is an adequate amount. Most
group life policies that are offered through employers will cover 3 times
your annual salary. Research shows that on average an individual needs
insurance coverage that is 10 times their annual salary. Even if your
group life coverage is an adequate amount, what happens if you leave
the company or get fired? You would suddenly be without any form of
life insurance.
Like most things in the financial planning arena, insurance can seem
complicated and overwhelming at first. So I cannot over emphasize the
importance of speaking with a professional you trust and do not be afraid
to ask questions.
Insurance is a big purchase and something that could be invaluable to
you and your loved ones.
Meila McKitty Plummer, B.sc, LUTCF, FSS
Financial Services Specialist
T h e B e y o n d Wo m a n M a g a z i n e
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