Photo by Tran Mau Tri Tam on Unsplash

Buying life insurance is easier now than it has ever been – including buying online!

Although it is a few years old now, a concerning study was published in 2014 that revealed far fewer Canadians were buying life insurance than three decades ago, yet one-third of Canadian households would face financial difficulty if the primary household earner were to pass away. Why would people NOT buy insurance despite having a need? Some of the most common reasons we have heard are:

Image: Danielle MacInnes

So, you’ve made the decision to buy life insurance?  Good for you!  It’s a major step in preparing you and your family for years of financial security. You’ve done the research on buying term life insurance or permanent life insurance and have decided to go with term insurance. But what term should you choose? In this Insurance 101 post we cover some of the factors to consider when deciding on a term for your term life insurance policy.

Image by: Patrick Tomasso 

When people contact us looking for life insurance, and we ask them why they feel they need it, the most common answer is “to provide enough money to look after my spouse and kids if I die too soon.”

Indeed, income replacement, children’s education funds, and paying off debts are the most common reasons families buy life insurance. But what if you have no dependents? Do you still need life insurance?

The answer is yes. Here are some reasons why.

In this Insurance 101 blog we’re covering one of the most common questions asked by people shopping for insurance – what’s the difference between Term Life Insurance and Permanent Life Insurance?

What is life insurance?

In its simplest terms, a life insurance policy is a contract to provide a guaranteed payment of a lump-sum of money upon the death of the person who is insured. In return, the owner of the policy agrees to pay regular payments, called premiums, for a specified period of time.

When it comes to buying insurance, you’ve probably heard this expression before. While it would be great if you could, in fact, purchase insurance at the time of an emergency, it’s best to be prepared for the unexpected, no matter the likelihood of an event. This adage could be taken as a reminder to not neglect your insurance policies, but what does it really mean, and how does it relate to purchasing life insurance?

One of the complaints I hear about insurance advisors is that they sometimes frustrate people by using fear to pressure their prospective customers to buy. When I started as an advisor, I swore to never use scare tactics and tell stories about people in my network who did or didn't have insurance, and the impact it had on their lives. But something happened recently that I felt compelled to share. 

When the temperature starts to rise in the spring and summer months, so does Canada's housing market. As we think about the Dos and Don’ts of buying a new home, it's important to think about what type of insurance is needed to protect our investment. Mortgage insurance may seem like a practical option, but is it the best one? And what are its drawbacks?

John Lennon once said: “Life is what happens to you while you’re busy making other plans.” This rings true in many aspects of our lives – in our jobs, our families, our homes. And also in our investment plans, as we think about the future and how we will achieve our financial goals. But sometimes, things happen that can derail these plans and good intentions.