What to look for in an affordable family life insurance plan
Camille Jones, CLU
By Camille Jones
When it comes to life insurance affordability, there are a variety of strategies that we can look at to ensure you are adequately insured without breaking your pockets.
For example, looking at term vs permanent insurance is a way to have greater insurance coverage for a lower cost. Term insurance can be purchased in 5/10/20 year terms, depending on how long you need the insurance and the cost. The lower the duration, the lower the cost. Most young individuals, individuals with small children, and/or individuals who have a short term liability, such as a mortgage, would choose the term option. The term option covers you for the duration chosen at inception, 5/10/20. After the term is up, there is an option of converting your policy to permanent or starting a new policy. This again is because of the lower rates for a greater amount of coverage. If one is just starting out in life, I would suggest term insurance.
Once you have established assets, such as a paid off mortgage, investments or to leave a legacy, the permanent option would be preferable. This is due to the benefit of holding this insurance until death. A permanent solution is more, but the death benefit need is usually lower than term insurance, as permanent insurance assists in paying taxes at death and funeral expenses.
Depending on the situation, sometimes it is more beneficial to have a “hybrid” policy, which is a combination of both permanent and term.
The best way to completely answer your questions is to meet with a consultant and go over an insurance needs analysis. When I sit with my clients, we do this analysis to determine where the insurance needs are, how much insurance is required and at what cost works into that client’s budget.
It is very important to have a protection plan in place for your family and assets, but just like a financial plan, there is no such thing as a one size fits all. We need to look at your individual situation and tailor your needs.
To discover the best protection plan for your family, contact Camille Jones, C.L.U at 647 856-8048 or 416 602 2231 or by email at [email protected].
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