The Canadian life insurance industry is a multi-billion dollar industry. The reason so many of us are investing in life insurance is because it provides peace of mind. Knowing that even in death, those you love and rely on you would not suffer significant financial hardship while maintaining their quality of life, can bring great comfort. Yet, often Canadians are not fully aware of the numerous other benefits that life insurance offers.
For the strictly pragmatic, not burdening your family with the costs of a funeral can be reason enough. A funeral in Canada can cost many thousands of dollars, which can be especially hard on those who have retired and living on a fixed income. Specific products like mortgage life insurance are designed to pay off the remainder of your mortgage if you were to die. Considering that for the majority of Canadians a mortgage will be their most significant financial related endeavor, it is a comfort to know you will not be leaving it as a burden.
Many Canadians see buying life insurance as their responsibility as the main provider for their family. Although this is true and an important aspect of life insurance, what can be downplayed is the financial benefit that whole life insurance policies can offer. Because a whole life insurance policy provides both coverage and a built in savings component, paying your premiums means you are also accumulating cash value. With a basic whole life policy the insurance provider invests the money on your behalf making it grow over time. These tax deferred savings can amount to a significant amount of money, which can even pay dividends.
Dividends is money that is payed out by insurance companies to insurance holders. Although dividends are not guaranteed, they can be a great way to supplement an income, especially for retired people who’s sole income is fixed. Speaking with an insurance professional is the best way to learn how else life insurance can benefit you.
With so many available polices and plans available in Canada, having a certified independent insurance broker to work is essential. A professional advisor can match your needs our of the hundreds of available plans. LifeCover.ca can help you get in touch with insurance professionals from our huge network of independent brokers across Canada. See how easy insurance can be.
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