Life insurance needs analysis
We have been talking about the needs of getting life insurance coverage, but do you really know your insurance needs?
In order to obtain the right amount of coverage, here are some questions you should go through. If you were passed away today,
- How much mortgage do your family still have to pay?
- How much income will your family lose due to your absence?
- Will there be any outstanding debts? (For example, line of credits, personal loans, car loans, credit cards, investment loans.)
- How much money do you want to continue contributing to your children’s RESP?
- What is the monthly expenses your family will have to continue paying? (For example, utilities, groceries, clothing, phone bills, car lease, rentals, entertainments, travelling expenses)
- What is the cost of your final expense?
- Will there be any tax that my family has to pay?
Another factor you should consider is how long do you need the coverage? 10 years? 20 years? Do you need the coverage temporarily? (i.e.: Only until your child is grown up or your debt is fully paid off.) Or you would want your coverage permanently?
Therefore, it is important to understand your needs when getting life insurance
Here’s is a link from one of our insurance carriers, BMO Insurance, where you could do some calculations on your insurance needs. http://www.bmo.com/advisor/canada/internet/us/files/Insurance%20Needs%20Analyzer%20-%20359E.pdf
Should you wish to discuss more with me, please CONTACT ME.