Financial plans often start with a vision. Many Canadians dream of watching their children in a cap and gown accept a diploma at their college graduation or spending their retirement years in a warmer climate. Companies have marketed financial plans with those dreams in mind. The part that is often missing in those visions are the financial burdens families shoulder in the event of undesirable circumstances. Life insurance as part of a financial plan can mitigate those situations.
Just as diversification is a common strategy to mitigate financial risk, select life insurance can provide families with options to alleviate financial stress in the event of an accident, death or serious illness. Statistics show that 1 in 3 working Canadians will become disabled and unable to work for a period lasting longer than 90 days (Statistics Canada, Commissioners disability table A). This can severely affect the amount of savings an individual is able to put aside for their future. The future is unpredictable. Being financially prepared can save Canadians time and money should any unforeseen expenses arise.
Canadians have the option to choose a life insurance policy that will ensure their families’ needs are met, whether it’s in the short-term or long-term. For example, a young individual who has dependent children or debts, may find the total death benefit more important than allocating some of those funds towards generating extra income. It is all dependent on a policyholder’s financial goals and current needs.
This brings us to our next point. No one likes to think about – let alone plan for – undesirable events. However, when it comes to ensuring the security of loved ones, it’s a crucial conversation to have. Life insurance is the main component of a financial plan that provides a safety net to families when a death occurs. It helps to support families with the many costs that arise in this situation such as funeral costs, coverage of liabilities and paying off a mortgage. It’s a simple way to ensure that one’s family is taken care of during a time of grief.
Life insurance should be a part of the overall conversation regarding financial planning. Taking a proactive approach – and the earlier the better – will help to mitigate risk and provide a financial buffer for one’s family in the event of an accident, death or serious illness. Teachers Life is a committed partner in creating customized life insurance solutions for policyholders. Use our Plan Selector tool to see what plan is right for you and get started today.