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What is Life Insurance?
By purchasing insurance, you provide financial security to your family should you die prematurely. In the event of your death, your life insurance will be paid out to your family, easing the financial burden that may be put on them without insurance. This is especially beneficial for families with young children, or a family in which the insured individual is the main provider.
Why is Life Insurance important?
Why is Life Insurance important?
Life insurance is important for a number of reasons. With life insurance, you can provide yourself as well as provide your family with security and peace of mind, and you can also ensure your family is not in debt should anything happen to you. The advantages of life insurance are as follows:
Life insurance allows you and your family to maintain a comfortable lifestyle that is free of worry or the fear of being financially crippled.
Life insurance, if paid out, can help to pay off existing debts, such as a mortgage or student loans.
Life insurance can pay for funeral expenses.
Life insurance can allow you to leave a family legacy or some money for charity.
Life insurance allows for tax-efficient estate planning.
Life insurance is something that everyone should consider investing in. You care about your family and you want to be comforted knowing that they will not be burdened by any financial issues in the event that you die prematurely. With Dropdead Life Insurance, getting life insurance is made easy, so that you and your family can start living more comfortably with as little hassle as possible.
- Income Replacement
- Children’s Needs
Ensure your family can stay in your home in the event of your death. Don’t leave a mortgage behind. Purchasing individual life insurance is the best protection you can have. Already have coverage at the bank? Ask if it’s level and portable. If not, Dropdead is for you! A mortgage of $300,000 may have a monthly payment of between $1500-$1750/month. A 30 year old female can be covered for as little as $13/month. That’s one lunch per month!
One of the most important reasons to purchase life insurance. If your dependents are counting on your income, what happens when that income stops? How would regular expenses get paid for? A good rule of thumb is 5-10x your take home income. For only pennies a day, you can replace years-worth of income. Remember, life insurance is not for you. It’s for the people you leave behind. Keep them in the lifestyle they are accustomed to.
If you died, would your spouse take time away with the kids? Would childcare costs go up? Would you want to ensure their education funding was never in question? Raising a child is never cheap. When life insurance planning, account for the ongoing costs of raising a family and ensuring their prosperity.
How much coverage do I need?
When deciding how much coverage you need, think about things such as burial costs, the cost of maintaining your family’s standard of living, and any expenses or debts that would be left behind after loss of life.
On average, most Canadians choose around $500,000 in coverage: Stats by CLHIA.
How long should I be covered for?
When deciding how long you should be covered for (i.e. the terms of your policy), it helps to think about the length of your biggest financial obligations.
For most Canadians, this is their mortgage. As an example, if you had 17 years remaining on your mortgage, we would recommend 20-year coverage.