Although the needs for life insurance may last a lifetime, your specific security needs will likely change at each stage of life.
A sound financial protection program goes beyond quick-fix, Band-Aid solutions that work for a while, but breakdown as soon as a new problem arises. Think of your financial protection plan as a safety net that has both the strength and flexibility to meet the changing needs of today and tomorrow.
Starting out
A young single person needs life insurance mainly to cover state settlement costs, including outstanding debts.
When you get married and have children, there are many new financial responsibilities and protection needs to consider. The primary goal may be to provide a replacement income to maintain yourfamily’s lifestyle while the children are dependent.
Life insurance may also be needed to cover a mortgage, car loans, and any other liabilities. You might also want to secure a bright future for your children with this special education fund.
As your family income and assets grow, more coverage may be required for to protect a higher standard of living.
Take care of taxes
As you get closer to retirement, the purpose of your life insurance is likely to change. An “instant estate” may be needed to maximize pensions and guarantee a secure retirement income for your spouse.
You may want to cover tax liabilities on RRSPs or RRIF’s, a cottage, condo or business, to keep these assets in the family. You might also want to fund a substantial donation to your favorite charity, without depleting your estate.
As you move through different stages of your life, your protection needs will change. By planning ahead, you can buy the appropriate coverage when it’s most affordable and you are in good health. We can help you assess your current and future needs, and develop viable solutions that will stand the test of time.