Buy The Right Kind Of Life Insurance

A recent survey showed that, while 89% of Canadians agree that life insurance should be part of sound financial planning, only 40% said they would know what to look for in buying policy.

The same survey showed that 32 percent of Canadians felt they were under-insured. Although experts recommend at least six times your annual gross income, the average amount owned by insured individuals is $142,000.

How many years of family income would that protect in your case? What would your family do once your insurance money was gone? Buying the right kind of life insurance is one of the best ways to protect your family’s future. As you consider the options, keep in mind that buying life insurance is like buying any other consumer product – your goal is to get the best value for your money.

Your life insurance purchase can seriously affect your family’s security is you die, and your quality of life while you’re alive.

Three points to consider:

1. Standard of living: In the event of the untimely death of either husband or wife, a wise insurance purchase can mean the difference between maintaining the family’s current standard of living and financial disaster for those left behind.

2. Long-term goals: Too little protection may leave your family vulnerable. The survivors may have to drain savings to cover burial and other expenses, which could seriously affect long-term goals like a university education.

3. Retirement Income: By lowering your insurance cost, you free up dollars, that could be better used to build cash reserve for the future.

People don't "need" life insurance- it is something they want to buy. It is all about how much you care about what you have built and whom you are leaving behind.
If you want to provide a safe future for your loved ones after you are gone, life insurance is a very good option.

By: P.D.

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Piri D. I am in my mid thirties, happily married and mother of three. I am a debt reduction champion with a passion for showing individuals how to budget. I take an educational approach to help people understand about their financial plan and the financial products they have work for their best. For more info check out my website: www.thefinancialpower.com/