Life insurance is a subject that many people shy away from, but it’s important to learn about. It protects your loved ones by giving them financial stability if the unthinkable were to happen. This blog post will give you 10 facts you need to know about life insurance coverage online so that you’re prepared for anything!
- The earlier you buy life insurance, the better
Insurance companies offer lower rates to those who buy life insurance at a younger age. In fact, the longer someone waits to buy insurance coverage, the more they will have to pay. This is because prices rise as you get older and your health declines. The sooner you buy life insurance, the better!
- Life insurance is cheaper than you think
You can get a good life insurance policy for as little as $30 per month – that’s less than the cost of cable TV or two lattes! Insurance companies offer discounts to people who stay in good health and don’t smoke, so keeping yourself healthy will help keep your premiums low.
- Life insurance pays out quickly
Life insurance pays out quickly when you pass away. It can even pay for funeral expenses and help with paying off debts that could otherwise be left unpaid (and be a burden for your family).
- Most people don’t have enough coverage
The most common reason is because they think their mortgage, car payment or student loan payments are more important than life insurance. Yet, these types of debts are repaid with your assets after death and your family only gets what’s left in your estate.
- Most people don’t review their life insurance needs
It’s important to review your life insurance needs at least once every few years because that is the only way you will be aware of any changes. If there are changes to your personal situation (for example a new baby), then it may be time for a review from an expert to see if you need more coverage.
- You should name more than one beneficiary.
This way, if the first person you named as a beneficiary on your policy dies before you do and their estate is settled, they will be able to inherit or receive the proceeds of your life insurance policy.
- Your insurance might not pay out if you die from certain causes
Life insurance can cover you in many different scenarios, but not all. If you pass away from certain causes such as dangerous activities (eg. skydiving), then your life insurance company might refuse the payout on your policy. It’s worth checking with an insurance advisor to make sure that any death benefits in place are enough for most scenarios.
- There are different types of life insurance
The main types of life insurance are term life and permanent life insurance. Term life insurance provides coverage for a specific period of time and doesn’t provide cash value or investment returns. Permanent life insurance, also known as whole life insurance, includes a built-in savings feature that term life does not offer.
- Many people rely only on life insurance through employment
When many people buy life insurance, they are not getting anything more than what their employer provides. Most Canadians have no personal protection against the loss of income when a breadwinner passes away or becomes disabled. It is important to factor in life insurance as part of your financial plan to protect your family’s future.
- Life insurance is important even if you don’t have any dependents
It’s common to think of life insurance as something for people who have dependents and want them taken care of in the event that they pass away. Yet, anyone can enjoy it because you never know what could happen. Whether you have any children, a spouse, or parents depending on your income, having life insurance is very important.
