Buying Life Insurance in Red Deer
With over 91,000 residents, Red Deer is the third largest city in Alberta. This city got its name from the river right next to it, which was called Waskasoo Seepee by the Cree people. Waskasoo Seepee can be roughly translated as Wapiti or Elk River. British traders were under the mistaken impression that wapiti were red deer, and thus Red Deer, Alberta got its name. Major industries in Red Deer include oil, grain, cattle, and agriculture.
Residents of Red Deer know that in order to keep their families financially secure in the case of the untimely death of the breadwinner they need to have life insurance. Life insurance, at its most basic level, is an agreement between the policyholder and the life insurance company. If the policyholder makes payments to the life insurance company, then the insurance company will pay out a predetermined sum of money to the beneficiaries of the life insurance policy when the policyholder dies.
Some people feel that figuring out how much life insurance you need is simple; according to them, just multiply your average annual salary by a number ranging from 6-12, and that’s how much coverage you need. However, your life insurance needs are more complicated than a simple multiplication problem. To determine how much life insurance you need, you should take into account what income sources are available to you, how large your family is, what your spouse’s earning capacity is now and will be in the future, how many people are financially dependent upon you and other death benefits your family may be eligible to receive.
Although the most common reason to buy life insurance is to protect your family after your death, there are plenty of other reasons to buy it as well. For example, some people buy life insurance so they can pay off their mortgage or other debts. Others buy life insurance to transfer wealth or business interests. Some use life insurance policies to build up cash on a tax advantaged basis, and others use it to get estate tax liquidity.
Before you delve into the world of life insurance, there are some basic phrases you should know. For example, a death benefit is the money the life insurance company will pay out after the policyholder’s death. A health class is the category an insurance company will place you in after they have evaluated your health. A premium is the amount of money that you will pay monthly to keep your life insurance policy in force. A quote is a price estimate that you can get to help you determine if you want to buy a particular life insurance policy or not. A rider is a document you attach to your original life insurance policy that details features you are adding onto your policy.