Retirees may find life and health insurance particularly useful for several reasons:
Here is an expense that many do not want to burden their loved ones with.
In general, financial advisors estimate funeral expenses at $10,000 per person (funeral home, religious service, burial, tombstone and, as the case may be, a reception for loved ones, etc.).
The $2,500 death benefit provided in Quebec by the provincial pension plan covers only a portion of these costs. The benefit is paid to individuals who have made sufficient contributions to the plan, i.e. most workers in Quebec. It is added to other estate income and is therefore taxable.
When a person dies, the tax implications can be significant, which is why some people take out insurance to protect the value of property bequeathed to loved ones. When the time comes, the insured amount will cover the amount due in taxes.
You can also take out personal insurance to leave a financial inheritance to one or more loved ones, or to make a donation to a charity or research organization, for example. These are personal, not financial decisions. However, planned donations represent an attractive choice to help founding charity or research organization and to benefit from tax deduction.
Some can afford to make such a gesture, while others cannot. For those who cannot, life insurance is an ideal solution.
Your Desjardins Financial Security advisor can tell you more about life and health insurance coverages. Make an appointment at your caisse today!
Money working for people
Copyright © 1996-2008, Fédération des caisses Desjardins du Québec. All rights reserved.