4 signs you should already have life insurance

Sponsored: By Laura Wierzbicki, BBA, Investment Consultant, Investor’s Group Revelstoke

Living in the mountain community we often find ourselves adventuring and partaking in the adverse mountain activities, but we often forget to plan for unforeseen financial events. When you’re young, life insurance probably isn’t on your mind. But, if you have a family or people who depend on you, it should be.

Life insurance can help family or dependents replace your income or pay off debts if you die unexpectedly. For anyone who has someone counting on their income to survive — including children, a spouse, or even a parent — having life insurance is a must.

At the end of the day, its income replacement, if someone is tied to or reliant on your income and you don’t have enough to provide what they’re relying on forever, you need life insurance.

If you don’t already have life insurance, there are four sure signs that you should

1) You have a family

If you have people depending on your income to make ends meet each month, you should probably already have life insurance. “You’re a father, you’re a mother, someone is dependent on you, but you don’t have the funds already there. That’s what insurance provides”

For many families, it’s a good idea to get life insurance coverage way before there’s a baby on the way. It’s cheaper to get coverage while you’re still young, and waiting to buy coverage only makes it more expensive.

Whether you buy now or later, parents almost always need life insurance. If it takes two incomes to raise your children the way you’d like to, life insurance is the best way to ensure they’ll always have access to the money they need.

2) You’ve made plans with your spouse or partner that depend on both of your incomes

Even without having children, having life insurance could still help protect your spouse. If your spouse or partner depends on having your income each month, you should have life insurance, even if they have their own income.

Couples tend to plan for their financial goals together. Whether it’s your retirement plans, a home you own together, or even your day-to-day living expenses that you cover with two incomes, protecting your spouse with life insurance is a must.

3) You earn an income

For anyone earning a paycheck, income is still a consideration in how much life insurance to get. In general, the more income you earn, the more life insurance you should have. For the typical family, life insurance just makes sense. It’s a very inexpensive way, generally speaking, to provide potential dollars that aren’t there. It’s an affordable way to make sure your family will be supported.

4) You own a home or have large debts

If you own a home, you should already have life insurance. The reason is simple: If you die while you own the home, someone will be responsible for it. Although lender’s mortgage insurance is easy protection (a simple add-on while getting your mortgage), there are many reasons that a personally owned life insurance policy could be a better fit for you.

If you were to die and have a $500,000 mortgage, we would need assets to pay that off somehow. If your family’s relying on your income to pay it, but if your income stops tomorrow, where are they getting that money from?

While homes can be sold, that could mean a move for your family in an already hard time. Life insurance could help prevent that. Your home’s mortgage should be a consideration when determining how much life insurance you buy, along with your income. If anything happens, life insurance could help to pay off your home and help your family stay there without worry.

Insurance planning doesn’t stop at life insurance, we need to consider any unexpected circumstances and ensure that you protect, preserve, and provide for those you care for. We have a vast insurance offering that looks at all areas that may impact you financially. We offer personally owned life insurance, disability insurance, critical illness insurance, and long term care insurance. For businesses insurance planning goes even further, not only do we offer group insurance plans, we offer disability insurance, key person insurance, and business overhead insurance. If you have questions about any of these products please feel welcome to reach out for unbiased advice.

Investment Planning | Retirement Planning | Tax & Estate Planning | Insurance | Mortgage Planning

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This column, written and published by Investors Group Financial Services Inc. (in Québec – a Financial Services Firm), and Investors Group Securities Inc. (in Québec, a firm in Financial Planning) presents general information only and is not a solicitation to buy or sell any investments. Contact your own advisor for specific advice about your circumstances. For more information on this topic please contact Laura Wierzbicki | Consultant | IG Wealth Management