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Do You Really Need Life Insurance?

| August 25, 2016 | 6 Comments

Do you need Life Insurance?Most people understand how life insurance works and what it is designed to protect against. They may also have family commitments and people who they provide for and know that some sort of life insurance would protect their family financially, if something were to happen to them. However, it is still often a very difficult decision to make if you are trying to decide whether or not you need life insurance.

Life insurance can be a big commitment financially speaking. The premium can vary in cost but can be considerable, then there is also the issue that life insurance term often extends over many years. There are not many people who can say with certainty what they will be earning in ten or fifteen or twenty years from now.

Early termination penalties

There can also be early termination penalties for permanent policies, which means if you want to end the policy early, you will be financially penalized. This is generally more relevant to universal and whole life insurance policies that accumulate cash value.

Tax-Free savings

If you have permanent life insurance, then it will also be a method of tax-free saving for the future. This is a very popular concept, especially these days with the growing concern about the state of pension funds, but it again deserves careful consideration. There are many ways to save for the future, and by deciding to do so with a Universal or Whole Life policy still entails deciding that it is something that you want and are willing to pay for. If you do not need it, then there are probably more efficient ways of saving for retirement.

If you have a young family and are concerned about their financial security for the future, then life insurance will be a great opportunity for you to provide for these concerns. There are also many other benefits and advantages a life insurance policy can offer to your financial plan so it is best to meet with a licensed life insurance broker who can asses your needs and make sure you get the proper protection.

AndrewWBradley.ca Financial Services

Photo credit: Sidereal via Foter.com / CC BY-NC-ND

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Category: Finance, Living, Tips, Weekly Themes

About the Author ()

Andrew is a licensed Life Insurance Broker and Registered Retirement Consultant-RRC® helping Ottawa families since 2011. Awards : 2017 ThreeBestRated.ca -Handpicked Top 3 Financial Services in Ottawa, 2017 Faces Magazine Awards – Ottawa’s Favorite Financial Advisor, 2017 Feedspot Top 40 Life Insurance Blogs on the web and 2016 Insurance Business Magazine – Life & Health Advisor of the Year Finalist.

Comments (6)

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  1. Jeff Wood says:

    Through my work we all have life insurance. Myself, my wife, and my kids. Outside work I have enough life insurance that every thing is paid for and my wife wont have to worry about finances for years to come. My wife has some as well to help me support our kids if something happened. For us I work and my wife stays home with our kids. We set our life insurance the same way. If I go my wife has everything covered and can start a career with no worries. If she goes I carry on but my kids are taken care of so I dont have to worry.
    We dont plan on going anywhere soon but for us knowing that if anything happens no one has to worry about finances is a huge relief. We picked plans that we can change if need be and premiums that are in our price range.

  2. loriag says:

    Life insurance is a must, as is buying it early while you are younger with a young family. We would never be insured again if we let ours go do to health issues. It also came in handy with a critical illness.

  3. Cheryl says:

    My FIL died of a sudden accident so our family knows the importance of life insurance.

  4. Life insurance is important but one of my most dreaded subjects to talk about.

  5. AD says:

    An absolute must. Most people need to look at the amounts they purchase; most people don’t buy enough. If you want your loved ones to have a quality of life comparable to what you currently have, then you need to purchase high amounts. Something to talk about with your provider.

  6. sarah alexis says:

    It’s so hard to think about the “What Ifs” of life – but having children really puts it in perspective as to how important a life insurance policy is!

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