Making Changes to Your Life Insurance Policy

by | May 25, 2022 | Uncategorized

A life insurance policy can be crucial in safeguarding your family and ensuring their financial security if one or both parents die or die.

The amount of coverage required is contingent upon a myriad of aspects. When a person dies, estate (consisting of assets and liabilities), when taken together with the payout from life insurance. Will cover any outstanding debts and ensure a certain quality of life for remaining dependents for a specific period.

The thing that many do not do is update their life insurance policy when life events change their lives dramatically.

The following scenarios are to get considered when calculating the amount of life insurance coverage you require:

  • The procedure for selling and purchasing a home.
  • Charge card debt has changed.
  • Any inheritance money.
  • Marriage status changes.
  • Changes in an employment situation.
  • New cars.
  • The birth of babies.
  • Dependents with student loan debt.
  • Other significant assets or liabilities
  • Along with any changes to your insurance plan, you should think about any adjustments you need to make to your last testamentary will.

If you own an insurance policy with a term that is due to expire, you have a few options:

1: Renew the Life insurance policies (assuming that the policy has a renewable term).

2: Convert the term insurance plan into a whole life insurance plan (assuming the policy can convert). Full life insurance is higher priced than term insurance. Still, it permits the accumulation of cash value and can be used to manage wealth or estate plans.

3: Don’t purchase a new life insurance policy (usually not an option unless you have sufficient assets to pay for funeral expenses and cover current dependents).

If you don’t own a life insurance policy, we suggest learning the price a term life plan will cost you. Term life is relatively affordable and provides security if an unexpected event occurs.

Conclusion

If you have any questions about updating your life insurance policy, please call Ottawa Life Insurance at (613) 454-1424 or info@ottawa-lifeinsurance.ca. As experienced Ottawa insurance brokers, we are pleased to help!