Life insurance is a crucial part of a sound financial plan. It’s critical to feel at ease knowing that your financial obligations will get met and your family members will be protected. Some situations may require more life insurance than you think, so an insurance agent must ensure that members get adequately prepared for these events. We’ve put together this list of critical moments when you need life insurance most.
Getting Hitched
If you marry, the financial obligations are an effort of both partners. When one passes away or dies, a life insurance policy can ensure that the surviving spouse has the financial security to sustain their current living level. Death benefits paid to the deceased’s spouse can get used to finance a child’s education or supplement retirement. Furthermore, when the cash value of the policy increases and more assets are available to pay off the mortgage, pay off the business’s debt, or pay off any outstanding taxes.
Being a Parent
The need for life insurance that is sufficient for each parent is essential for young children. If you or your partner die suddenly, your life insurance limits should be enough to cover childcare, aid in financing the cost of college, and daily living costs.
Helping Elderly Parents
The burden of caring for your elderly parents through their death could be an expense in financial terms. Life insurance is a method to potentially recover some of the cost you’ve incurred for the care of your parents or make arrangements for their final needs, such as funerals.
A House Purchase using a Mortgage
Life insurance is usually bought in sufficient amounts to pay for the part of the loan. The beneficiaries will receive enough money to pay the remaining balance if you pass away.
Establishing a Business or Becoming self-employed
If you’re self-employed, the investment that you’ve made in your business has been significant. If the worth of your company has recently changed, ensure that your life insurance limits are sufficient to cover the company debts that your family could be to be accountable for after your death. Please do not put them at risk of liquidating assets to cover the debt.
The Transition to Becoming Stay-At-Home Parents
While parents who stay at home don’t bring home a salary, they are a huge source of help to their families. If they didn’t have the time to care for their children, cook food and run errands or take care of other household chores, there would be a need for someone to get hired to fill the duties. It is a cost that the working parent would need to pay if something happens to the mom who stays home. If the parent had life insurance that would pay out a death benefit, it could cover the cost of childcare so that the family’s finances won’t take a loss.
Ottawa Life insurance is an individual agent for insurance situated in Ottawa. We provide insurance through various insurance providers to ensure you get the appropriate life insurance plan for your needs and budget! You can reach us at (613) 454-1424 or online at info@ottawa-lifeinsurance.ca.
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