Let A.P. Reid help you make sure that you are purchasing the right types of Life Insurance for your family. Whether you need it to protect your Mortgage, to provide some assistance to your spouse and children if you were to perish, or if you’re looking for a new way to save for retirement – A.P. Reid can help you through the process and provide solutions tailored to your specific needs. The information below will help you understand the need for Life Insurance and what’s available to you.
Why consider insurance?
You can ensure that your loved ones will be protected through tough economic times in the event of your death. Insurance can help cover practical costs so that your loved ones aren’t left with a financial burden or can simply provide a financial benefit to help after you are gone.
- Tax-free benefit
- Pay off debts
- Funeral expenses
- Estate costs
- Living expenses
What different policies will do for you?
Though it seems there is a bewildering array of policy types and names, they all boil down to two basic forms of life insurance: permanent and term. As a rule, permanent needs should be covered with permanent insurance, temporary needs with term insurance. Often, a combination of policy types does the best job for you. So, what is a temporary need? A mortgage; high needs for continuing income when your children are young; some business obligations; and so on. Permanent needs? Funeral expenses; supplementing a survivor’s income; covering capital gains taxes at death, especially if family property is to be passed on to the next generation; and children who remain dependent for their lifetimes, often due to a disability.
Permanent life insurance
Permanent life insurance has several variations: whole life, universal life, variable life. All are designed to provide insurance protection for your entire lifetime, as long as you keep the policy in force.
Term life insurance
Term policies provide insurance coverage for a specified period (e.g., a fixed number of years, or to a set age) and then expire. A death benefit is paid only if you die during the term of the policy.
It’s not always easy to think ahead to difficult times, but having life insurance can give you comfort in knowing that when you die, loved ones need not worry about finances.