Whether it is while creating a budget, choosing a life insurance plan, paying your taxes, or even filling out a government form, most of us have come to the same conclusion – “becoming a responsible adult is tough and complicated.”
Protecting your family with the right life insurance plan can take away half of your stress – provided, you DID choose the right plan as per your needs. Here, in this blog, we will try to explain what protecting your family with the right life insurance plan really means.
By the “right life insurance plan,” we mean a plan that is customized for you and only you based on your budget, needs, financial goals (both long-term and short-term), etc. So, let’s begin.
Who do you protect?
As far as life insurance is concerned, you insure yourself (or both yourself and your partner) to protect your loved ones. It is like you are putting on a helmet on your head, so your kids don’t get hurt if s/he fell off the bike. It may sound illogical but this is precisely how life insurance works.
You are probably well aware of this that your life insurance plan will provide your family with a death benefit when you are gone. So, in a way, you are not going to benefit from it. Instead your children, partner, parents, or loved ones are going to be financially protected by your plan in your absence.
To sum it up, we can say buying life insurance is a very generous act on your part and one of the best gifts you can give to your family.
What are you protecting them from?
Now you know who you are protecting with a life insurance plan, it makes more sense to know what exactly you are protecting them from. Here is a brief list of financial impacts that your loved ones may face following your death:
- Funeral expenses: To be honest, dying can be as expensive as living. Funeral expenses can range from $10,000 to $20,000. This can quickly become a burden for your loved ones who may not have the funds available. A life insurance plan can easily provide coverage for these expenses.
- Debts: These typically include credit lines, student loans, car loans, and the most important one of them all – mortgage. After your death, your heirs do not only inherit your assets, but also your debts. Life insurance can provide them with enough money to pay off these debts and avoid getting them into financial trouble.
- Replacement of your income: If you are married with children, the chances are high that your family is financially dependent on you. In case of your death, your family would lose your salary, resulting in a significant hole in your family budget. With a life insurance plan, there can be substantial replacement of your salary so your family continues to have the same lifestyle in spite of your absence.
Note: Depending on your lifestyle, the financial impact of your death can vary from tens to thousands of dollars. Your life insurance advisor should take this amount into consideration before fixing the coverage.
So, how can you protect yourself?
The best suggestion would be to consult an experienced life insurance broker. There are many life insurance options out there. As a result, you can quickly get lost with so many choices. An experienced life insurance broker (or advisor) can help you choose the right plan for you based on your budget, needs, goals, and lifestyle.With Trust Life and Investments, you will be able to get yourself a customized life insurance plan in minutes without any additional fees or obligations right from the comfort of your home. Get in touch with us today to know more about affordable life insurance plans in Mississauga and Toronto.