A life insurance policy tailored to your requirements can provide financial security, particularly when safeguarding your loved ones during a difficult period. But with so many fallacies, how can you understand why you need life insurance?
Here are some of the most frequent life insurance myths addressed.
1: Your Group Plan Provides Adequate Protection
Life insurance provided by your employer can be a great benefit. But it isn’t unlimited. Employers typically offer a basic one-time salary, which is usually not enough. Second, since you do not own the group insurance, it will also disappear if you leave your work.
2: Life Insurance Is Costly
Term and permanent insurance are the two types available. The term is “rented” and is a low cost. Permanent is for life that can use for estate planning or retirement. The purchase of life insurance in the early years is among the most effective methods to secure the most affordable price. If you’re on a tight budget, consider term insurance. Suppose you’re saving money and want to build assets tax-free. In that case, you can pass money through your estate tax effectively, or if you have an estate planning problem, consider permanent insurance.
3: You Require Life Insurance to Cover Funeral Costs
When you purchase a life insurance policy, you can give your beneficiaries or loved ones a tax-free death benefit. It is the quantity you pay your beneficiaries when you pass away. Many people think of the death benefit as a means to pay for the expenses associated with their funeral. It certainly can do that. Consider other financial obligations your family may need to take care of while you are away. What the expenses they rely on you to cover right now are? Can they pay for those expenses in the event of your death? Your family might depend on you for various expenses of living, like the cost of tuition or a mortgage. A suitable life insurance plan will leave the insured with enough cash to cover these costs and any outstanding loans.
Have you ever considered the disposition of your wealth and the tax treatment they receive in the event of your death? It is among the most critical aspects of planning, but people rarely get it right the first time.
4: You Require the Same Amount of Life Insurance Protection as Your Spouse
The amount you pay for life insurance depends on your debts and income levels. Unless you and your spouse have similar income levels, you will likely require different plans. A couple of tailored policies will ensure you and your spouse have enough insurance.
Ottawa Life Insurance provides health, life, and group insurance coverage for businesses and individuals. We can assist you if you require insurance for your personal or professional coverage. Email us at info@ottawa-lifeinsurance.ca or call (613) 454-1424 for further information.
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