The average cost of a funeral in Canada is $8,500, and it can very easily rise up to $15,000. That is too much money, and it is just the starting. If you have any debt or loan, it would be passed off to your family. So, if the worst happens with you, your family would be burden with emotions and money issues. One of the ways, you can eradicate the latter is Life insurance. In this article, we are listing ten things you need to know about life insurance.
- Life insurance is a contract: You and the insurance company sign a contract in which you pay a premium for a fixed period. If your death is approved by the contract, the insurance company pays benefits to your listed beneficiaries. If the company doesn’t pay, you can sue them.
- Life insurance is not an investment: Many people believe life insurance is an investment that will give return after your death. This is completely false, as life insurance is a policy to safeguard your family’s financial capabilities.
- Different kinds of life insurance: There are different types of life insurance, such as term insurance in which you pay a low premium, but your coverage isn’t lifetime. While in permanent insurance, you pay a high premium and covers your entire life. You can look up each variant and select the one which suits you.
- It is affordable and expensive: Life insurance comes in different financial packages, the more cover you want, the more expensive it will get. Hence, you can sit down and shape your life insurance to fit your budget.
- Life insurances are assets: If you are about to get divorced and you are a beneficiary of life insurance or own life insurance, then your spouse can claim it. Life insurance is considered to be assets. So, ask your divorce about it so that you don’t give it up.
- Life insurances are tax-free: One of the reasons people go for life insurance is that it is tax-free, and it is also keeping your family safe after you are expired. So, it gives you a double benefit. Hence, it is a wise decision in this regard.
- Read the fine details: Before signing for life insurance, it is extremely important to read every fine detail. This will ensure the policy is appropriate for you, and you aren’t falling in a trap with no returns at the end.
- Life insurance isn’t adding monetary value to your life: Movies and books have spread the rumor that people kill for life insurance return. However, if your death is a homicide, chances are your beneficiary won’t receive money. Hence, life insurance is a savior in your life.
- Use DIME: DIME is a personalized way of calculating how much life insurance you might need. This can come in handy while you are deciding on which life insurance to choose from.
- Buying early help: The younger and healthier you are, the better it is for you. As you have to pay a low premium while the returns aren’t low when compared to premiums. So, get yourself life insurance before you fell to disease.
So, these are ten things you should know about life insurance before you prepare to buy. Use these tips to find suitable life insurance for yourself.