How Life Events Affect Your Insurance Needs
As we go through the different stages of life, from infancy to adulthood, our wants and needs change and so do our financial needs and responsibilities. During our transition to adulthood, we tend to only think about ourselves and the present whereas as we age our goals and thoughts change. What becomes more valuable is our legacy and the thought of keeping our family and loved ones safe and financially secure even after our passing.
This is why life insurance is such a widely used tool for both financial and retirement planning, not just in Canada but around the world. A comprehensive life insurance policy can help protect individuals and loved ones if the unexpected occurs and give people peace of mind and a sense of security.
However, not all life insurance policies are the same. So, to find the right policy for you, in this guide, we will take a look at what life events can affect your insurance needs and the different types of policies available to ensure those needs are met!
What Are Some Major Life Events That Can Impact Your Insurance Needs?
Many major life events can impact your insurance needs both in the short and long term. As you transition from one stage of life to another your insurance needs may require reevaluating, especially in the cases of the following:
- Getting Married
Getting married begins for many the next chapter of life. It is a bond of love and a promise to build a future as partners. As such, once a person gets married both partners must have a life insurance policy so that in case something unexpected were to happen to either one of them the other isn’t financially burdened with outstanding debt, burial/funeral costs, and other major expenses.
- Having A Child
Having a child is a blessing and a responsibility as you must protect and financially provide for them. As such, as soon as you have a child you should seek out a life insurance policy, whether that be a term life insurance policy or a whole life insurance policy to help protect your children financially should you or your spouse pass away.
- Buying An Asset (Vehicle, Home, Etc.)
When you buy your first home or even a rental property, it is always important to consider mortgage insurance, especially if you don’t have enough money to pay the 20% down payment on a new home. Having mortgage insurance can increase the chances of you getting approved for a mortgage as this type of policy helps minimize the risk for lenders.
In the case of buying a vehicle, you will also need vehicle insurance whether that be third-party insurance or full vehicle coverage as per Canadian law.
- Starting A Business
In a rapidly changing world, many consider entrepreneurship the key to accumulating wealth and being successful. However, starting your own business isn’t an easy ordeal as it requires a lot of hard work and plenty of sacrifice. It also means you are no longer going to be covered by your previous employer’s life insurance or group insurance policy and will have to take responsibility for your own insurance needs.
This would require purchasing life insurance, health insurance, liability insurance, disability insurance, and more for comprehensive coverage which can be quite challenging. The best way to figure out a coverage policy when starting your own business is to consult with an insurance broker or expert who can help you navigate through the various options and find you a policy best suited to your new insurance needs.
- Changing Jobs
When transitioning from one job to another, or considering a job offer, it is important to look at not just how much more you will be getting paid in terms of salary or hourly pay but also the perks and benefits that your current job offers versus your new job.
Some Canadian companies offer comprehensive life insurance policies that cover health, life, vision, dental, and disability insurance while others may only offer health and life insurance. You must ask about what your policy entails and if there are gaps in the coverage how much it would cost to fill those gaps.
- Retiring
Upon retiring many people think or assume that they no longer need life insurance. However, if you still have outstanding debt, plan on continuing to work, or have a spouse or child that is disabled it is vital that you consider future coverage.
- Divorce
Divorce is hardly ever smooth. In most cases, it is messy and emotionally and physically taxing. You are not just splitting up assets and belongings but also splitting up your lives and the lives of your loved ones. It is no surprise then that in the unfortunate event of a divorce, your insurance needs will also drastically change and you will need to revise or seek out new insurance policies to protect your children and yourself.
What Are The Different Types of Life Insurance Policies?
Based on the life events you are currently passing through here are the different types of life insurance policies that can cater to your changing insurance needs.
Term Life Insurance
The least expensive of all life insurance products, term life insurance is designed to offer more flexibility and can be purchased for a 10, 20, or 30-year term.
Permanent Life Insurance
This type of policy lasts the entire lifetime of an insured person for as long as the premium is paid. It has a higher cost but offers lifetime coverage, flexible payments, and the opportunity to build cash value.
Variable & Universal Life Insurance
Permanent life insurance can be further broken down into variable vs. universal or whole life insurance. The main difference between the two policies is that whole life insurance offers a guaranteed death benefit but slower cash value growth whereas a variable life insurance policy offers flexible premiums, flexible death benefits, and greater potential for cash value growth.
The Best Life Insurance Policies For Nova Scotians – McIver Insurance!
With the right type of life insurance policy and provider, you can ensure that your loved ones are well taken care of if anything unfortunate were to happen to you, giving you peace of mind and allowing you to live more fearlessly.
If certain life events have changed your insurance needs, consult with McIver Insurance! When it comes to life insurance companies in Halifax no one can beat our level of professionalism, experience, and pedigree.
Call now at 1-902-220-3279 or email [email protected].
