January 27, 2014
by Aleksandra Emmerson •
Info Articles •
Raising children, earning money every day, making plans for the future, buying a home are all dependent on you being around. Funding your plans for the family in the event of an untimely death is the main purpose of buying life insurance.
Dave Roos of HowStuffWorks.com explains the importance of buying life insurance.
“Life insurance is meant to replace your “value” to your family once you’re gone. For a working parent, a big part of that value is your salary. If you die, you’ll want your family to receive enough money to replace your salary for at least the next five to seven years.”
“Life insurance should really be called “death insurance.” Like other types of insurance, life insurance is protection against the unknown. When you buy life insurance, you’re paying for the peace of mind that your family will be taken care of in the event of your sudden demise. Life insurance is the life jacket in the fishing boat, the air bag in the car. You hope to never have to use it, but it’s nice to know it’s there.”
Once you have determined that you need or want insurance the first step is researching rates and products. This is very easy, be sure to find a life insurance brokers in Toronto that has a website capable of giving you information on the various products available as well as quotes. It is important to deal with an insurance broker that offers products from a wide variety of top tier life insurance companies so that you get the best price for your age and lifestyle.
The cost of life insurance primarily depends on its type, either term life or whole life. By its name, term life insurance means it covers a temporary or specific period, typically 10, 20 or 30 years, the premiums are fixed for that entire term. As a result, term life insurance premiums are more affordable than whole life (permanent insurance).
Meanwhile, whole life insurance plans are designed to be with you for your entire life. Premiums start off much higher than term insurance but remain level for your entire life. Unlike term insurance you can count on this money as being a part of your estate. You will die someday and when you do, your beneficiaries (your children, spouse or favourite charity) will get these funds.
The cost of life insurance and options between the various life insurance companies can be quite different. Certain companies have better rates for smokers; others have better rates for pilots or people involved in scuba diving or other extreme sports. Still others are more forgiving of high blood pressure and diabetes. Some give preferred rates more readily or often for healthy individuals. Some have a higher incident of declining people they feel present a risk too great to insure. Each insurance company decides what they will charge for each age and condition. For this reason consider asking a knowledgeable Toronto life insurance broker like Insurance Advantage to help you compare rates and choose the best type of insurance for your specific situation.
(Article Information and Image from: How Life Insurance Works, HowStuffWorks.com)
