Do You Really Need Term Life Insurance? Considerations

Do you really need term life insurance? The correct answer is yes! Dealing with accidents is an important part of a wise financial plan.

Prepare for the future

It is not too early to choose term life insurance, but it is always too late. You may be in good health now, but you never know what will happen to you or your loved ones in the future. Sometimes, life insurance is required for everyone’s life due to serious illness, accidental death or disability. Life is full of curves. Sadly, sometimes tragedy and sudden changes.

Many young people are still young, so they don’t consider term life insurance. There is a misunderstanding that term life insurance is most suitable for people at the mature stage of life. However, young people, especially those with young families, may need regular life insurance more than those at a more mature stage. If you have young families, mortgages, businesses and/or other debts, you will often rely on your ability to maintain financial stability. This may be the time when your budget is tight. This will make you think that the insurance policy is unnecessary.

But there is no difference in life! Tragedy can befall anyone at any age and at any stage of life. If you or your spouse dies, becomes disabled or gets sick, the economic consequences may have a negative impact on your family’s ability to make a living. You may think that term life insurance is not necessary, but it’s just the opposite. You really need term life insurance.

If you purchase term life insurance in Alberta, remember that life insurance requirements may change as your family grows, your career, and your finances change. The best policy for you now may not be the best policy for you in the future. Every 5 years or after every major life change(marriage, children, house purchase), your Alberta term life insurance policy should be reviewed to ensure the correct coverage.

Who should have term life insurance?

If the person you love faces risks or financial losses due to your death, you really need regular life insurance. Here are some questions to ask when deciding whether term life insurance is required.

• Do you have kids? If the answer is yes, you must have regular life insurance and the financial obligation to take care of and raise children in the event of your death or incapacity.

• Are you a business owner? If so, all business liabilities will be handled and the financial obligations of employees or partners must be guaranteed.

• Do you have any assets that cannot be easily cashed in? This may include farms or ranches, where most of the value of the property is land or privately owned enterprises. In order to transfer land or business to beneficiaries, it may be important to have life insurance sufficient to cover inheritance taxes.

• Do you have a family history of chronic diseases? According to Statistics Canada, cancer and heart disease are the main causes of death in all states and regions, and Nunabut suicide is the main cause. In Alberta, lung diseases and other respiratory diseases rank high among the causes of death. If your family has a history of this disease, you will have a higher risk of this disease in your life. Make the best plan by preparing for the worst.

• Do you have a house? Do you want to repay your mortgage after you die?