I purchased my first life insurance policy as soon as I became a mother. My father sold life insurance when I was young and had spoken about the importance of it many times, so it was an obvious choice. However, I didn’t really understand the reasons for getting life insurance, because there are more than I realized. Today, I understand the importance of life insurance more than ever. Here are the reasons I choose to be insured:
Cover Funeral Expenses
I don’t want my family to worry about paying for my funeral or burial plot. Ideally, I will have these things paid for myself in time, but until that time comes I make sure my life insurance includes funds to cover them.
Pay Debts
In the event of my death, all of my debts, including my mortgage will be paid in full. It is another way of making sure my family is taken care of.
Leave Money for Family
For our family, we choose to have enough life insurance to set aside money for the kids’ education and to replace lost income for at least a year. It is also important to us that there is money for the surviving parent to stay at home with the kids for a while without feeling additional financial stress.
Securing Insurance for the Children
With many life insurance options, you can choose to add additional coverage for your children. This amount is generally just enough to cover funeral expenses, but it has another very valuable purpose. Your child’s life insurance can be transferred over to adult coverage when he/she turns 18 as a continuation of the policy. This is significant if your child has developed health issues over the years. If he/she was not previously insured, there may not be an option to do the new health issues.
Choosing a Life Insurance Provider
When purchasing life insurance, there are many things you need to consider. How much coverage do you need, and how much can you afford to each month? Do you want term or whole life insurance? Term tends to offer cheaper alternatives but expires after the set term. Whole life insurance is more expensive and often includes some portion of the premiums as investments that can be cashed out should you cancel the policy.
I called Canada Protection Plan to get a quote on 20-year term life insurance for myself, with $350,000 coverage. When I called, I was told that the call was being recorded, I would be speaking with a licensed insurance broker, and the call was confidential. The broker then asked me for my age, height and reviewed my medical history. Once he had the important details, he asked me why I wanted life insurance. I gave him the reasons I listed above and told him the type of coverage and amount I was hoping for.
He asked me if I would like to go through a 5-7 minute questionnaire to determine if this was the right coverage for me since they offer both term and whole life insurance. I declined, as I am very familiar with the types of life insurance and what coverage I want.
In order to have $350,000 coverage, I would require a paramedical visit and the cost would be $57.08 a month. There was a slight discount if I chose to pay annually and the policy could renew until I turned 80. At the end of the 20-year term, I could choose to convert to whole life insurance, but the monthly fees would be much higher. These rates are based on my own personal circumstances and medical history. Rates will vary from person to person.
If I wanted to avoid the medical, I could do so by choosing $300,000 in coverage, under the same terms as above. The monthly fee would be $57.51. I consider this the better deal since medicals are time-consuming, and I do have some health issues that may interfere with my coverage.
My broker was very well informed and answered each one of my questions with ease. He explained that anyone from 18 – 80 years old could apply for coverage with Canada Protection Plan. The coverage available goes from $1000 to $500,000, and there is up to an additional $250,000 available if death is accidental. I learned that Canada Protection Plan is the leading provider of No Medical and Simplified Issue Life Insurance.
Overall, I was pleased with the knowledge of the broker on the phone and impressed with the cost of the plan I was researching. You can get more information and a free quote too, by visiting Canada Protection Plan.
Although this post has been generously sponsored by Canada Protection Plan, the opinions and language are my own.
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