Life insurance, why take out it?

Life insurance is important because it protects your family and allows you to leave them a tax-free amount in the event of your death. It is also used to cover your mortgage loan and your personal loans such as your car loan. In addition, individual life insurance follows you when you retire and are no longer insured by your employer. This insurance will also replace your family’s income during the period when they have fewer resources and will allow them to maintain their standard of living.

How to choose your life insurance?

Once you understand the importance of taking out a life insurance policy , you need to choose it carefully. To do this, you must ask yourself questions to determine your needs and thus subscribe to a product that suits your family and insurance premiums that fit your budget. A financial security advisor  can guide you in your thinking.

First of all, your need for insurance will be influenced by the following elements: your family situation, your age, your state of health and whether you are an owner or self-employed worker.

Whether you are single or in a relationship, it is important to take out life insurance. When you die, your loved ones will have to pay funeral expenses and fulfill your various financial responsibilities such as your debts. If you have insurance, your debts will not be a burden on your family members.

In addition, your loved ones may also have to assume some of your shared responsibilities, which includes expenses such as your credit card fees, your rent, your car payment, your mortgage payment, your student debt or others. If you have children , life insurance will help replace the loss of income of one of the parents to provide for the needs of the children.

Life insurance is also an effective financial tool to protect your business. It will allow you to ensure your safety and that of your loved ones in the event of unfortunate events.

If you start your business with a partner and he dies prematurely, will you have the necessary liquidity to buy back his shares and pursue your dream? An unfortunate event like this could have major consequences for your business. It is therefore important to think about it now. If you do not have coverage, obtaining one will allow you to take into account your needs as a self-employed worker and will avoid possible financial worries for your family.

Life goals

Your personal, family and professional life goals will also be decisive in choosing life insurance. For example, do you want children? What are your career and income goals? Or, at what age do you want to retire?

This will help you assess the amount of life insurance you will need to take out to protect your loved ones in the event of your death.

Type de protection

You’ve thought about your situation and your life goals, and all you have to do is determine the type of life insurance that’s right for you.

For example, you may ask yourself whether you need short-term or long-term protection or whether you want protections that generate cash flow and have cash values ​​that will allow you to carry out projects, etc.

Once you answer these questions, you will be well equipped to choose the life insurance that is best for you.

A financial security advisor  will be able to guide you and answer all these questions and, based on your answers, will be able to direct you towards the life insurance that suits your needs.

In conclusion…

The important thing is to choose the life insurance that suits your budget and your needs. Over the years, your needs, your family situation and your life goals will evolve. At that point, there will always be time for you to re-evaluate the type of insurance that is right for you, to ensure that you are properly covered.

Also remember that you are never too young to purchase life insurance, since the younger you are, the lower the cost of your premium. Know that the role of the financial security advisor is to guide you in your thinking, according to your reality and your objectives.