Protecting the future financial security of your family and your business. .

Q: I can go online and buy insurance in a few minutes. Why wouldn’t I do that? 

Most insurance plans available to purchase online cover you temporarily and have little flexibility, which can be suitable for some simple, fixed, short-term needs. But most of us have lives and finances that are complex, ever changing, and not completely predictable. A professional Insurance Advisor can not only help you sort out, and protect against, potential short and long-term financial losses, but also has access to insurance plans that offer far greater value and flexibility than the simple short-term plans available to you online. 

#2 I have plenty of coverage

Next, not purchasing enough life insurance is an all-too common problem that many people face. Most people underestimate how much money is needed to provide their family with financial security in the event of their death. Although there are commonly used rules of thumb when it comes to determining how much coverage your family needs, such as multiplying your income by ten, these are often inaccurate. Take a look at our previous article, Life Insurance for Financial Protection, for a basic explanation of how much coverage your family may need.

#3 Term insurance is the least expensive coverage

Term insurance is popular among young people as the premiums are relatively low because as the name suggests, it protects you from the financial impact of death for a set period. This type of insurance is preferred for parents who would like to support their children financially for 5, 10, or 20 years in case they pass away while the children are still dependent. That being said, although term insurance comes with many benefits such as low premiums, these premiums escalate exponentially once the chosen term is over. Although term insurance still has its place in many people’s lives, if you are looking for long-term coverage, purchasing only term is not economically efficient. For more information on the best type of insurance for you, watch this Smart Talk video.

#4 I Have A Policy, I’m Done

Life insurance is arguably the most important purchase decision you will ever make. Once you buy it, it is crucial to review your policy and contract every three years to ensure that it still aligns with your current lifestyle and your needs. For example, if your beneficiary was a spouse that has died or that you’ve separated from, you must change your designated beneficiary, as you want your death benefit to go to the appropriate person. Additionally, your needs may change overtime which requires you to verify whether or not the policy you purchased still fits with your current and anticipated future needs. For this reason, we recommend having an adaptable life insurance policy that can adjust to you and your everchanging lifestyle.

#5 I Have Plenty of Time to Buy Life Insurance

Since there exists a strong relationship between your age, health, lifestyle and your insurance premium rates, waiting too long to purchase life insurance can be an expensive mistake. The younger and healthier you are, the lower your premiums will be for both term and permanent insurance. In this Smart Talk video, you’ll see some of the insurance needs you’re likely to have throughout your lifetime, highlighting the importance of building an affordable and flexible insurance plan early on that will last through all of your life’s adventures.

For more information on needs-based insurance, contact Filomena Viele.