Do you have your financial future taken care of? Are there plans in place in case something happens to the head of your household?
These are the questions asked by Co-operators agents concerned for the well-being of their customers.
“The financial security for Canadians and their communities is a key aspect of what we do,” says Insurance and Financial Advisor Daniel Wang of Daniel Wang Agencies “We know that if something happens to the head of a household, there’s a significant impact. What’s going to happen to the family? What happens to the roof over their head?”
That’s why you need to consider a life insurance policy that will provide for your family or beneficiaries, or take care of expenses and taxes after you’re gone.
When looking at life insurance, it’s important to distinguish between permanent and term insurance, says Wang.
“Permanent life insurance builds in value within your policy, so when you pass away, there is enough at death to cover capital gains tax,” he explains. “This is important if you have a rental property, because the capital gains tax becomes due when the owner passes away.”
Term policies don’t work that way, says Wang, because the price goes up each time the term renews and usually people just walk away from the policy, so it never pays out.
“Permanent policies will never lapse,” says Wang. “They are initially more expensive, but they will pay dividends in the long term.” And once you set a premium, it never changes.
You can also start with term insurance and convert it to permanent if you want. And you can cancel your permanent policy and get your money out.
“People who are value-focused tend to gravitate toward a permanent policy,” says Wang.
Even if you already have a life insurance policy, if you’ve had it for a while, you should consider reviewing it, says Wang.
“People’s lives change – you get married, you have kids, you get a job, you lose a job – you should always chat with your advisers,” he says. “What are your needs now compared to three years ago? Are they the same? Great! If not, let’s start talking about it.”