Life Insurance Understanding Life Insurance Basics

Life Insurance Can Help You Accomplish Important Goals

Most everyone agrees that life insurance is essential. But many don’t know the ins and outs of life insurance. Life insurance and the different types of coverage can be complicated and we often hear questions such as :

  • What are my life insurance options?
  • How much do I need?
  • What kind of life insurance is best for me?
  • What if I’m still alive and my policy expires?

We’ve written this page to help you learn about life insurance so you can feel confident about making informed decisions.

An insurance broker or a financial advisor can help you with your needs and goals. They will walk you through your present financial scenario – asking you to think about your savings and other assets and liabilities that you may have – including other types of insurance. These pieces of your financial picture coupled with your life stage and goals, should fit together and be specifically customized to you.

  • Pay off your mortgage
  • Provide income for your partner or spouse
  • Take care of final expenses like probate fees
  • Repay outstanding debts or capital gains
  • Create a post-secondary fund for your children or grandchildren
  • Protect a special needs family member beyond your life
  • Create and protect your future dreams

Life insurance gives you peace of mind – you’ll know that you have left your family, loved-ones and dependents with a secure future. Leave a legacy of financial security instead of shaky income and leftover debt.

What’s The Best Life Insurance Option For You?

Not sure which life insurance option is the best fit for you? Speak with your insurance broker. By determining your short and long-term financial goals, your flexibility and your risk tolerance, you can find the right balance of insurance products that match your financial profile.

Insurance Solutions Tailored to Fit Your Needs

When it comes to life insurance you have several options to choose from. Brokers may advise you to invest in more than one type of life insurance. By blending more than one type, you can often meet most of your financial goals. Here are the main types of insurance coverage :

Term Life Insurance

Term life insurance offers high, short-term protection at the lowest cost for a set period of time. Term insurance is a very affordable option and suited to young families on a tight budget or to homebuyers holding a large mortgage. Learn more about Term Life Insurance

Permanent Whole Life Insurance

Permanent Whole Life Insurance protects you throughout your lifetime and has the added benefit of a tax-advantaged savings element. Permanent Life Insurance provides a death benefit and builds cash surrender value. This coverage can serve as one component of your long-term savings strategy. Learn more about Permanent Whole Life Insurance

Universal Life Insurance

Universal Life Insurance also offers permanent life insurance with a tax-advantaged investment component. You can use the growing cash value of your universal life policy to increase your death benefit or to help fund the cost of the policy. Learn more about Universal Life Insurance

Where Do You See Yourself Today?

Identifying your life situation will help you and your broker understand your short and long-term needs and the type of life insurance that best suited to you. You may see yourself in one or more of these profiles. Don’t worry, you can blend life insurance products.

  1. Launching Your Career
  2. Getting Established
  3. Broadening Your Horizons
  4. Achieving Financial Security
  5. Accomplished Entrepreneur or Business Owner

1. Launching Your Career

Do you see yourself in this profile?

  • You’re between 20 & 35 years old
  • You’re advancing in your chosen career
  • You want a comfortable home and a reliable car
  • You’ve set life goals and want to plan for your future

Needs that accompany this profile include :

  • Protecting your income and lifestyle
  • Coverage for your mortgage or an outstanding loan
  • Flexibility to adapt to unforeseen or predictable changes

2. Getting Established

Do you see yourself in this profile?

  • You’re between 25 and 55
  • You may be married with children or you’re planning to have children
  • You want to live in a comfortable home and take a trip overseas
  • You may be planning for your children’s education
  • Retirement planning is coming into focus for you
  • You want to achieve financial independence

Needs that accompany this profile include :

  • Mortgage coverage
  • Funding for your children’s education
  • Protecting your lifestyle (and your partner’s lifestyle)
  • Building an inheritance for your loved ones
  • Creating a legacy for a favourite charity

3. Broadening Your Horizons (active parenting is over)

Do you see yourself in this profile?

  • You’re 50+
  • Any children you have live independently or are almost independent of you
  • You own vacation property
  • You would like to travel
  • You’re close to or thinking about retirement
  • You’re concerned about the liquidity of your portfolio
  • You are reassessing your financial portfolio

Needs that accompany this profile may include :

  • Mortgage coverage
  • Supplementary retirement funds
  • Lifestyle protection for you and your partner
  • Funds to cover estate and capital gains taxes
  • Planning for declining health (long-term care needs)
  • Leaving an inheritance for your children and grandchildren

4. Achieving Financial Success

Do you see yourself in this profile?

  • You’re between 35 and 55 years old; You’re married or have a partner
  • You’re a professional or a business owner
  • You own a vacation property
  • You would like to travel but not at the expense of undermining your independence
  • You want to ensure that your assets will meet your needs
  • You want to hire an expert to help you achieve your financial goals
  • You need assistance with tax-advantaged opportunities
  • You intend to invest in your children’s or grandchildren’s future

Needs that accompany this profile include :

  • Coverage for business loans, your mortgage and other loans
  • Supplementary income in retirement in a tax-effective manner
  • Protection for your lifestyle
  • Assurance you’ve covered all taxes on your estate
  • Providing educational funding for any children or grandchildren
  • Creating a legacy for a favourite charity
  • Safeguarding an inheritance for your loved ones
  • Securing your business finances

5. Accomplished Entrepreneur or Business Owner

As a business owner or entrepreneur, you have distinct insurance needs that depend on the stage of business development your company or partnership is in. Your insurance situation becomes even more unique when your personal goals and life situation are taken into consideration.

Do you see yourself in this profile?

  • You have a business or a business partnership
  • Your assets/wealth are tied up in your business
  • You want to build in personal disability and death protection
  • High liquidity in your portfolio is important

Needs that accompany this profile include :

  • Insurance protection for business loans and mortgages
  • Employment continuity for key employees
  • Protection of your lifestyle or your partner’s
  • Supplementary income in retirement in a tax-effective manner
  • Adequate coverage for estate taxes
  • Leaving an inheritance for your partner, children or grandchildren

We Can Help You Find The Ideal Life Insurance Solution

ThinkInsure's life insurance experts can help come up with a plan and coverage options based on your needs and stage in life. We are a full service life insurance broker and have access to products from the top insurance companies. We'll provide unbiased advice and make sure you get the best coverage for your needs and budget.