Choosing the best life insurance for your needs

What coverage best meets your needs? That’s typically the first question to ask when it’s time to take out life insurance. There are many options available: term, permanent, whole, participating. How do you choose the right one?

Deciding which life insurance product to buy might seem complicated, but you just need to make sure it meets your coverage and term needs. Before you start, take the time to ask yourself a few questions: What do I want to leave my loved ones? How would they be able to pay off my debt? If I die, do I want my kids’ education to be funded? How much should I set aside to replace lost income? If you already have life insurance, some events are also key times to review your needs: new relationship, new baby, separation, a partner’s death, new job, job loss, new home, second home, and so on. When your life changes, so do your insurance needs!

Make a decision

In most cases, the best solution is probably a combination of term and permanent. And remember, both types of insurance cover you completely in the event of death. There are tools available to help you do some preliminary research, but it’s always best to talk to a financial security advisor in person or by phone. They’ll do a more thorough analysis of your insurance needs and recommend the best product for you.

What stage of life are you at?

When we’re just starting out, we often don’t have much financial security and the cost of insurance is less than the shortfall our family would experience in the event of our death.

Cover funeral expenses without having to dip into savings or take on debt
Avoid leaving loved ones with debt
Continue meeting the family’s needs with one less income should a parent die
Protect your future insurability; take out insurance before it becomes too difficult or expensive to get coverage
Get lifelong coverage no matter what happens to your health

Just as a house needs a solid foundation, your financial plan needs the right life insurance.

Cover funeral expenses without having to dip into savings or take on debt
Continue meeting the family’s needs with one less income should a parent die
Keep the surviving spouse from having to dip into their savings to pay for funeral expenses and cover financial obligations
Maximize the value of your estate upon death
Provide your children with financial stability
Let heirs keep financial assets
Secure funds you want to leave your heirs

After working hard for so many years, you should also think about protecting your retirement plans in the event your spouse dies and decide if you want to leave money to your heirs.

Cover funeral expenses without having to dip into savings or take on debt
Get financial support so you can achieve your retirement goals should your spouse die
Pay or reduce taxes
Maximize the value of your estate upon death
Secure funds you want to leave your heirs
Create a debt-free estate
Leave a tax-free inheritance
Put tax strategies in place (planned giving or charitable donation)

How would your business survive without you?

Cover funeral expenses without having to dip into savings or take on debt
Purchase the deceased shareholder’s shares from their estate
Cover business-related financial obligations (commercial lease, business debt)
Put tax strategies in place (planned giving or charitable donation; maximize the company’s passive income)