You may be paying too much or for the wrong coverage if you haven’t reviewed your life insurance lately.
Here are seven insurance opportunities that could provide you with lower rates, better coverage, benefits you can receive while you are alive, an inheritance for your family, and a lifelong retirement income:
1. As people are living longer, life insurance rates have decreased. You may be able to get more coverage for the same rate you are now paying, or you may be able to pay less for the same coverage you have now. With term insurance, your premium often doubles or triples each time the term ends (usually every 10 years). If your term is coming up in the next few years, it makes sense to compare your rate and term to current rates.
2. If you have mortgage insurance with your financial institution, did you know that the bank is the beneficiary if you pass away, not your family? And the value of the insurance declines as your mortgage principal declines, but your monthly premium stays the same. Term insurance costs about the same and sometimes less, you choose the beneficiary, and your coverage does not decline.
3. Canadians are living longer and are not prepared for the costs of long-term care as they age. Did you know that you can buy a life insurance policy that you can use for long-term care coverage? This permanent life insurance policy offers a tax-free monthly benefit if you need daily care after age 65 or 10 years after the contract is issued, whichever is later. Have you thought about how you will pay for long-term care when you or your spouse or your parents are old and in need of care?
4. Many people have life insurance but little or no insurance that provides for them if they were to get sick or have to miss work because of an injury or accident. Did you know that a 50 year-old female non-smoker is almost 9 times as likely to become disabled before age 65 compared to her likelihood of dying by that age? And a 50 year old non-smoking male is almost 6 times as likely to contract cancer, heart attack, stroke or another critical illness before age 65, compared to his likelihood of dying. Wouldn’t it make sense to have more balance in your insurance coverage?
Without disability or critical illness insurance, who would support you or your family if you were to get sick or were injured in an accident? And what would happen to your retirement savings if you had to dip into them to support yourself?
5. Perhaps it’s time to consider the one asset class that never loses value. Did you know you can buy permanent insurance that covers you with a level premium until you die? You also have the option of paying for 20 years or less, but keeping your life insurance coverage for the rest of your life. What a great way to leave an inheritance for your family. You can then feel good about spending all of your money in retirement and dying with a dollar in your pocket!
6. With a permanent whole life insurance policy, you can borrow against the cash value of the policy as a source of tax-free income in retirement, and may never have to pay the loan back until after you pass away.
7. If you are over age 60, it may make sense to purchase a permanent life insurance policy, and then buy an annuity. The income from the annuity pays for the life insurance premium, plus an after-tax return that is higher than you can get from GICs. So you get the best of both worlds, a guaranteed lifetime income for yourself and an inheritance for your family.
As a licensed life and health insurance broker, I can conduct an insurance needs analysis, review your existing policies, recommend appropriate changes for you, and get you the lowest premium for the coverage you need. I deal with over 15 insurance companies including RBC Insurance, Manulife, Sun Life, Canada Life, BMO Life, Empire Life, Assumption Life and many others. There is no cost for this service and no obligation to buy if you don’t see a real benefit for yourself and your family.
So, lower rates, better coverage, benefits you can receive while you are alive, an inheritance for your family, and a lifelong retirement income. Call me or send me an email and I will do a complete insurance review tailored to your personal situation.
“The approach is ‘client-first’ and customized based on individual circumstances, low-key and unpressured, giving me the opportunity to adopt solutions that suit the situation and to collaborate on next steps. I’m pleased to have found a financial advisor who is truly interested in positive outcomes for clients.” Shelley Grandy, Client