Financial Literacy Month

If you have someone who depends on you, life insurance isn’t a nice-to-have, it’s a must-have for your financial plan.

Canadians are carrying more debt than ever before. In fact, Canadians owe $1.67 in consumer debt, mortgages and non-mortgage loans for every $1 of disposable income. It’s a good idea to sit down with your family and figure out where you want to be in the next 5, 10 and 20 years. Whether it’s staying in your current home or moving to a larger space, growing your family or considering retirement, your family needs a solid financial plan to achieve those dreams. A good plan will include protection for your loved ones if you were to pass away unexpectedly.

Are you responsible for financial obligations such as:

  • Rent or mortgage payments
  • Outstanding debts
  • Tuition fees
  • Funeral expenses
  • Any other living expenses

If the answer is yes – your loved ones need life insurance.

Safeguard your family with financial protection

It’s a fact that most Canadians are underinsured. According to a recent LIMRA study, less than half of all Canadian households have individual life insurance coverage. Only one third have any life insurance coverage at all. Despite this – the same study showed that 20% of households would face immediate financial adversity if a primary wage earner were to die suddenly. Life insurance provides a tax-free benefit for your loved ones should the unexpected happen.

What kind of life insurance is right for you?

Life insurance is for the living. Providing financial protection for your family might be the most thoughtful investment you can make for the people you care about the most.  But what insurance is best for your needs? When researching life insurance, there are two products you need to know about, term and permanent.

Term Life Insurance

  • Great if you have temporary or short-term financial obligations, like a mortgage or tuition fees
  • Affordable rates, especially if you are young
  • You can choose your coverage length and add more later if necessary
  • Some policies can be renewed without a medical
  • A great supplement to any workplace life insurance you have

Permanent Life Insurance

  • Lifelong coverage – even if your health status changes
  • Great for long-range and estate planning
  • More expensive than term insurance initially, but coverage rates never go up
  • A great supplement to any workplace life insurance you have

Often good financial planning includes a bit of both term and permanent insurances. Use this free online insurance calculator to determine how much coverage you need: Life Insurance Calculator

Workplace insurance

It’s great if your workplace provides group life insurance in your benefits package. Because it’s group insurance, rates are usually less expensive. If you have the option to increase the amount of your coverage, you should, because of these lower rates. But here are some key considerations about workplace life insurance to remember when evaluating your overall financial plan:

  • You may not be able to keep your coverage if leave or lose your job
  • Not all employers provide it, so you can’t count on it at your next job
  • It may not be enough to cover your debts

Review your workplace life insurance policy to make sure it provides enough coverage. You may need to supplement it with term or permanent insurance.

Trusted Expertise

Life insurance should definitely be a part of conversation when talking about your financial goals. Taking a proactive approach – and the earlier the better – will help to mitigate risk and provide a financial buffer, if the undesirable does happen.

Don’t put it off – you can change your financial plan as needed but getting started with a basic amount of life insurance will allow your family to navigate their financial future no matter what the future holds.

Teachers Life has been providing secure financial protection to our policyholders for over 80 years. Reach out to one of our insurance experts today to discuss your financial plan.