Life Insurance to Protect the Financial Future of your Loved Ones

Life insurance has many uses and can create an instant estate. The three main uses of Life insurance upon the insured’s death are:

Paying off debt like a mortgage or loan

This is by far the most popular reason people buy life insurance. It is always better to get your own insurance policy for this purpose, rather than coverage offered through the lender. You have complete control to choose the beneficiary(s) and your coverage will go with you even if you switch banks or lenders. You will also have additional options that you can take advantage of such as guaranteed renewal and conversion options, regardless of your health.

Final expenses like funeral costs and estate taxes

The proceeds of a life insurance policy are available immediately and may be used to help pay such final expenses as funeral costs and taxes thus eliminating the need to sell assets to pay these costs. Where there is more than one child not involved in a family business, life insurance can be used to equal out inheritances. This is very important where the insured wants to make sure each child is dealt with equally and fairly. Example: one child might inherit the family business or farm and the other children will be named as beneficiaries and get the proceeds of the life insurance policy.

Providing for surviving family members

Life insurance is an excellent way of providing:

• education funds for children and grandchildren
• funds to pay monthly living expenses
• funds for a favourite charity

There are many other benefits too; it’s just a matter of getting the right information from your own life insurance broker.