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Understanding Life Insurance

Wondering if life insurance is right for you?

You are 5 quick questions away from finding out.

Question 1 of 5

Let’s start with the basics…

What can Life Insurance provide me?

Select all that apply.

Life Insurance helps provide financial protection for your loved ones should you pass away.

A life insurance policy pays a guaranteed lump sum amount of money to your loved ones (beneficiaries) when they need it most after you pass.

Life insurance coverage falls into two broad categories: term and permanent.

Term life insurance provides coverage for a specific number of years and is renewable after the initial term is up, if needed. It is customized to cover short term needs like debts, loans and/or income replacement until your child becomes independent. Term Life Insurance is the most affordable type of life insurance.

Permanent life insurance is designed to cover long term needs such as income to support a disabled dependant, funeral expenses or estate planning.

The lump sum amount of money from a Life Insurance policy can be used to help:

  • Replace lost income for your family
  • Cover or pay off living expenses like mortgage or rent
  • Provide for your child’s care
  • Pay off debts you may leave behind
  • Fund your children’s education
  • Create a tax-free inheritance
  • Cover funeral and other final expenses

OK, got it, next question…

Question 2 of 5

When is the best time I should consider Life Insurance?

Select all that apply.

When I have…

You may want to consider life insurance if you have people who depend on you financially or have debt that will be left for your loved ones.

You would likely need life insurance if you:

  • Are expecting or have kids or dependants
  • Share financial responsibilities with your spouse or partner
  • Have debts, such as a mortgage or car loans
  • Don’t have enough savings to cover funeral and final expenses
  • Want to leave an inheritance to your loved ones

You probably don’t need life insurance of you:

  • Are single and have no kids or dependents; and
  • Don’t have debts; and
  • Have enough savings to cover funeral and final expenses

Okay, got it. Next question…

Question 3 of 5

What is the right amount of Life Insurance coverage that I should get?

Life insurance is not a one size fits all approach. The amount of coverage you need will depend on your existing assets, your debts and bills, and if you have anyone financially dependent on you.

If your budget doesn’t allow for you to obtain the total amount of coverage recommended – some is better than nothing. You can revisit adding more as your life and budget changes.

If you have life insurance through your employer, you may not be sufficiently covered because it’s only valid during your employment and generally only covers a small amount of lost income – often only one or two times your salary.

Good to know. You’re nearly done…

Question 4 of 5

I think a life insurance policy of $350,000 for a Term 20 (coverage for 20 years) would cost me ______ per month.

Typically, a policy of $350,000 for a Term 20 costs between $30 to $40* per month.

*Based on a 35-year-old non-smoker female ($30) and a 35-year-old non-smoker male ($40).

The cost of life insurance (premium) is determined based on a variety of different factors such as:

  • Age
  • Gender
  • Health including any tobacco use
  • Lifestyle
  • Family medical history

As such, your premiums will be lower the younger and healthier you are.

Okay, final question…

Question 5 of 5

What should I expect during the purchase process?

Select all that apply.

You will be asked about your lifestyle, personal and family health history. In many cases, many receive an instant decision on coverage.

If you do not receive an instant decision on coverage, you will need to complete a 30 minute interview to review the current state of your health in order to finalize a decision. The 30 minute interview is completed over the phone and an in-person consultation may or may not be required in your home.