"Rent" or "Own" - Life Insurance

Life insurance is a valuable part of any comprehensive financial plan, providing protection and peace of mind for you and your loved ones.

However, navigating the world of life insurance can be overwhelming, with a wide array of policies and options to choose from. A personalized solution is critical to ensure you have the right amount of coverage and optionality for the future.

• Typically, you may want to insure against the risks / liabilities outlined below:

  • Mortgage Balance and Other Debt

  • Income Replacement (3-10 years after tax income) 

  • Business Interests / Ownership

  • Possibly applicable - Education, Childcare Expenses, etc.

"Renting" Insurance - I often compare Term insurance to renting an insurance policy for your current needs. It affords you cost stability during the term length and can be very cost effective for periods in your life where your insurance needs are the highest.

• Purchasing a longer-term (20/30 years vs 10 years) policy now can ensure you have adequate coverage, with guaranteed pricing, for the years you plan to need it.

• Term insurance increases in price dramatically following the original term, most people reapply for a new policy if they can pass the medical underwriting.

• Option to covert into permanent insurance in the future.

"Owning" Insurance - A permanent life insurance policy is generally intended to be maintained until you pass away. There are a vast number of options / structures in the permanent insurance market, which all have unique advantages.

A permanent insurance policy may be leveraged to:

• Insure against a large tax liability (Family cottage, Business Ownership, etc).

• Provide a specific gift / bequest upon your passing.

• Provide liquid funds to estate beneficiaries.

• Provide a tax sheltered investment alternative within a corporation.

If you want to learn more about how we approach life insurance coverage / secure a quote, please don't hesitate to reach out!