Big life events require big investments. When you’re preparing for big changes – such as buying a house, having a baby, or preparing for retirement – you’re probably reviewing your finances and considering how you’ll achieve your financial goals.
At these moments, it’s a good idea to review your life insurance policy. Does your current policy accommodate your changing priorities? Does your policy fully protect your assets and help secure your family’s future?
Here are a few examples of how big life events may change your life insurance needs.
Not sure what big life changes mean for your life insurance policy? Check out our Insurance 101 page to see how Teachers Life can provide coverage at each life stage.
Buying a New Home
Buying a new home is a significant purchase and often means taking on debt. With the rising cost of home ownership – the average Canadian home now costs $440,000 (CBC, 2015) – many Canadian families need two incomes to pay their mortgage. Yet many working women do not carry life insurance (LIMRA, 2012). Consider if you were to pass away, would your family still be able to afford your home without your income; or would they be forced to sell?
The right life insurance plan can help your family pay for your home in the event of you or your spouse’s death. Evaluate how much of your income goes towards paying for your home. Include your mortgage payments as well taxes, repairs, utilities and maintenance. Does your current life insurance policy provide enough coverage to help pay for these expenses?
Need help figuring out how much coverage you need to support your family’s goals? We can help. Click here to use our quick and easy coverage calculator. It can help you find a plan that matches your needs.
Welcoming a New Member to the Family
When welcoming a new member into your family, consider your growing family’s short-term and long-term goals. If you or your spouse passes away, life insurance can help pay for immediate expenses, such as funeral costs, living expenses and childcare costs. It can also help your family stay on track for future goals, such as helping to pay for your children’s education.
With the arrival of each child, you have another life to cherish and protect. Talk with your spouse and figure out what level of coverage is right for you.
Preparing for Retirement
In your 40s and 50s, you’re likely contemplating your retirement goals. You’ll be reevaluating your savings and figuring out how to support your lifestyle on a fixed income.
Check out this Retirement Lifestyle Quiz from GetSmarterAboutMoney.ca. This tool can help you better understand the savings you’ll need and if you’re on track to retire when you want.
At this stage, it’s important to review your life insurance policy. Do you still have major financial responsibilities, such as mortgage payments, or children or dependents to support? You may want to adjust your life insurance policy term to ensure that as long as these responsibilities remain, your coverage will help your pay expenses if you were to pass away.
Final expense insurance policies may be particularly appealing to Canadians ages 65 and older. It’s a simple tool to ensure that your family receives a death benefit that can help pay for debt, funeral costs, and probate taxes. Final expense insurance can help protect your family against unexpected expenses and with expensive funeral and burial costs.
At Each Crossroads, Review Your Policy
Big life events mean big changes for you and your family. At each stage, reflect on your family’s goals and consider your life insurance policy as part of your financial plan to help protect your family’s future.
It doesn’t have to be difficult. At Teachers Life, we support educators at each career stage – from their first day in the classroom to retirement day. Contact us today and we can help answer any questions you may have about your policy needs.
This blog is a part of a new Teachers Life series on “Women & Financial Wellness” Our third article was Starting the Conversation: 3 Tips for Talking to Your Family About Life Insurance. Follow us on Twitter, and be a part of our Community on Facebook.