Life Insurance: So Useful

There are far happier topics than talking about life insurance or death. But it's the kind of detail you don't want to leave out, especially for your spouse and children. During your lifetime, you will accumulate many normal debts: mortgage, personal loans (education, projects) and other types of debt. But the day you die, your surviving family members or any other person mentioned in your will inherit your debts and assets. 

You wouldn't want them to have to go into debt themselves to pay off your debts, would you? 

This is where the decision to purchase life insurance makes sense. Depending on the type of policy you choose, you will pay a premium, the same one every year, for a predefined term. If you die during this period, the life insurance will be honoured by your insurer (according to the terms of the insurance contract). The insurer will then pay the beneficiary(ies) the amount provided for.

Since there are several products available and your situation is unique, we recommend that you meet with us to discuss your needs so that the product you choose truly corresponds to your profile. 

One last advice. It is common to see policies chosen to correspond to the equivalent of 5 to 10 years of income. However, don't rely on the average. In some cases, purchasing a larger policy amount may be wise. Remember that the premium, in the event of death, must cover all your debts, so that your family is not left with a financial problem.

Need more information on the subject? Our team is there for you.

This article was prepared by Pierre Dauth, who is a mutual fund representative with Investia Financial Services Inc. This is not an official publication of Investia Financial Services Inc. The views (including any recommendations) expressed in this article are those of the author alone, and are not necessary those of Investia Financial Services Inc.