Although millions of Canadian residents have health and life insurance policies, many others lack protection because they aren’t sure what types they need, if any. Understanding each category’s advantages can help you select the best combination for you and your family.

Life Insurance

The Canadian Life and Health Insurance Association (CLHIA) reports that Canadians pay nearly $13.5 billion annually for life insurance. When contemplating this option, decide why you need such coverage. If your goal is income replacement, a lump sum can support your surviving mate and dependent kids after you pass. But if your offspring are adults, life insurance could offset any taxes they must pay upon receiving your estate..

With baby boomers between 51 and 69 now, retirement is looming for many. That will raise seniors to about 23.6 percent of the population by 2030, contrasted with 15.3 percent in 2013. Waiting that long to devise a comprehensive financial plan is unwise. Yet many people put off getting life insurance to avoid reflecting on their own mortality. You may be uncomfortable contemplating and discussing your death and how your family will fare afterward. But addressing this important coverage in a timely manner is key.

When businesses and workers weigh individual components in their employee benefit packages, many do not realize the importance of disability insurance. Countless people consider their largest assets to be their homes when their future income-generating abilities may predominate. Unexpected serious illnesses or injuries might leave personnel unable to bring in wages.

Since many personal situations can change over your lifetime, let’s continue exploring additional events that may affect your life insurance needs. Make a list of all applicable variables from this two-part series before scheduling your appointment with an Alliance Financial advisor. Together, you’ll be able to update your life insurance in Toronto to meet your current lifestyle.

Handling Debts

Getting control of your debts starts with living within your means instead of borrowing to purchase what you can’t afford. If various creditors are charging high interest rates, consider consolidating some or all of your debts into an account with a lower rate. But if you weren’t around, how would your family pay off that sizable obligation? Make sure that your life-insurance payout will cover your outstanding debts. Likewise, paying off large debts gives you the option of lowering your coverage.

Need help evaluating your evolving life insurance factors? Numerous changing personal circumstances can alter your financial objectives, making your existing coverage no longer suitable. Reexamining your options whenever major life events transpire or at least every couple of years is wise. Review the key considerations in this two-part series to see which ones apply to you. After determining your latest needs, contact an Alliance Financial Group advisor about life insurance in Ontario to make any necessary adjustments.

Getting Married

Coupling up involves sharing more than your lives. Your union encompasses both member’s financial obligations, and your new mate may rely on your earnings partially or totally. Either person could outlive the other. So both potential survivors need access to enough money to cover the other’s final expenses and debts like car loans and credit card balances. Start by designating each other as beneficiaries of any existing corporate and/or individual life insurance plans. Either spouse without coverage should consider getting it. If one or both of you have kids, also prioritize leaving enough to fund their futures.