Life Insurance
What to do with your term insurance policy as you head into retirement
It’s no secret that life insurance becomes more expensive as we age. Premiums are related to the mortality rate and the decrease in our life expectancy as we get older is reflected in the increased premiums. What you may not realize is that this risk is not represented by a linear line. If you graph the probability of death from an actuarial life table, you would notice that the probability of death increases exponentially as we age. What this means for term insurance is that renewal premium also rises exponentially, such that they become unaffordable during retirement. So, what are your options for your term insurance policy as you head into retirement?
How You Can Save Thousands By Laddering Life Insurance
What is the life insurance laddering strategy?
No, you don’t build an actual ladder with life insurance. (How would that work anyway?)
Instead, you buy term insurance of different lengths (term-10, term-20, etc) at the same time so that you coverage is staggered.
This ensures that you pay only for coverage you need while saving money in the process. It could end up saving you over $10,000!
Read on to find out how this strategy works.
Joint First-To-Die Life Insurance: Pros and Cons (Updated in 2024)
Did you know that a life insurance policy can cover more than one life?
One of these types of policies, joint last-to-die, pays a death benefit on the last death of two or more people.
The other, joint first-to-die, pays out on the first death between two people.
In this post, we will explore the advantages and drawbacks of joint first-to-die life insurance coverage and whether it offers the financial protection you need.
Joint Last-To-Die Life Insurance: Pros and Cons (Updated in 2024)
You might have heard that life insurance can cover more than 1 life.
One of these types of policies, joint first-to-die, pays out on the first death of 2 or more people.
The other, the topic of this post, is joint last-to-die.
As you can probably guess by its name, the insurance company pays out the death benefit when the last person on the policy passes away.
In this post, we will explore the advantages and drawbacks of joint last-to-die life insurance and whether you should use it.
Do You Need Life Insurance In Retirement?
Do you need life insurance after you retire?
Maybe you’ve been holding on to a policy for a long time. Or maybe you’re thinking of buying a new one.
Whatever the case, you’ll want to make sure you make the right decision.
In this post, you’ll learn:
-Why you need life insurance in retirement
-Why you don’t need it
-What type of insurance you should get
-How much insurance you need
And much more. Let’s get started.
Insuring the different stages of life
As we travel through the journey of life, our financial needs and obligations undergo constant change. For example, your financial obligations increase once you are married, and continue to do so as your family grows in size. It should come as no surprise that insurance varies in importance at different stages of life. Proper planning at each stage of life is necessary to ensure that you and your dependents are protected. Without knowing the risks and a plan to minimize the risk, you are potentially exposing your family to a financial disaster. Here are which types of insurance you should be aware of at each stage of life.
Disability Insurance
What Is A WLRP? Wage Loss Replacement Plan Explained
Group long-term disability insurance is the most common way for companies to provide income replacement coverage for employees. It pays a monthly benefit if an employee can’t work due to an injury or illness.
But did you know there are many shortfalls with these types of plans? For example, higher earning staff may not be adequately compensated because of low benefit amounts. Premiums can also increase if there are lots of claims.
For these reasons, employers that want better disability coverage for their high-income earners and executives have to look elsewhere. And the most suitable option is a wage loss replacement plan (WLRP). This post explains how these plans work and the advantages for employers and employees.
Buy-Sell Disability Insurance In Canada
The success of a small business depends largely on the productivity of its owners. If one of the owners in a partnership becomes disabled, the company will suffer financially.
That’s why small businesses should have a buy-sell agreement that details what happens to the shares of the disabled partner. Who will purchase their shares? How will the shares be valued?
Perhaps most importantly, where will the funding come from? A buy-sell disability policy is the crucial piece that completes the buy-sell agreement. Learn more about how it works and why you need it to protect your business.
Key Person Disability Insurance In Canada
Any successful business owner will tell you that its key employees are the company’s backbone. If they suffered a disability, there would be a severe financial impact on the business. It may not even be able to survive over the long term. That’s what makes them the key people in a company.
If your business is dependent on one or more key people, you need to protect it with key person disability insurance.
Learn more about how key person insurance works and how it can ensure the survival of your business in the event of the disability of a key employee.
15 Disability Insurance Myths, Debunked
Although long-term disability insurance has been around for a long time, many misconceptions still exist. People don’t understand how it works or why they need it. As a result, they have a hard time separating the facts from fiction and end up believing disability insurance myths.
Before getting disability insurance, learn about the facts that dispel these 15 disability myths.
13 Disability Statistics That Will Shock You
Did you know that more than one billion people worldwide live with a disability? Even in a developed country like Canada, disability prevalence is more common than you may realize.
We gathered 13 shocking disability statistics that highlight the prevalence of disability and the financial impact of a disability.
Why You Can’t Rely On Government Disability Benefits
The government of Canada provides millions of Canadians with disability coverage. But did you know that these programs have glaring deficiencies that prevent them from fully protecting your income?
In this post, we explain why you can’t solely rely on government-sponsored disability insurance. We’ll also show you how a private long-term disability policy gives you the best income protection.
Critical Illness Insurance
14 Types Of Critical Illness Insurance Policies
Critical illness insurance plays a vital role in maintaining your financial stability after being diagnosed with a covered illness, like a life-threatening cancer or heart attack. It pays a one-time tax-free lump sum benefit that you can use to pay for extra medical expenses, replenish your emergency fund, replace lost income, and more.
However, the landscape of critical illness insurance is expansive, with several plan options available. From term policies with a defined coverage period to whole life plans, ensuring lifelong protection, the array of choices can be overwhelming.
In this post, we shed light on the options you have to buy critical illness insurance. By the end, you’ll be equipped with a clearer understanding of the plans available, empowering you to make informed decisions to safeguard yourself and your family.
Avoiding Surprises: Understanding Critical Illness Insurance Exclusions
Critical illness insurance offers financial protection if you are diagnosed with a covered condition, like life-threatening cancer, heart attack, kidney failure, or motor neuron disease. Despite its comprehensive coverage, scenarios exist where an insurance provider might withhold the critical illness insurance payout. These are called exclusions.
Critical illness insurance exclusions outline what a policy won’t cover, representing the boundaries and limitations of the coverage. Understanding these exclusions isn’t merely an afterthought but a pivotal part of making an informed decision. They serve as guardrails, defining the scope of the policy and shedding light on scenarios where the safety net might not extend.
This post equips you with the knowledge necessary to navigate through policy intricacies, ensuring that the safety net you’re investing in aligns with your expectations and needs.
Child Critical Illness Insurance: Securing Your Child’s Future
In today’s world, securing the well-being of our children extends beyond providing daily care and nurturing their dreams. As parents or guardians, safeguarding their future against unforeseen challenges is a responsibility we take seriously.
Child critical illness insurance protects against the financial strain that may arise if a child encounters a severe health setback. This specialized coverage offers peace of mind and practical support, ensuring that in the face of a critical illness diagnosis, the focus remains on the child’s recovery rather than financial worries.
This post explains what child critical illness insurance entails, why you need it, and the type of coverage to get. Read on to equip yourself with the essential knowledge to make a well-informed decision.
Understanding Life And Critical Illness Insurance: A Buyer’s Roadmap
Life and critical illness insurance form the bedrock of safeguarding your future and that of your loved ones. Life insurance ensures financial stability for your family in the event of your premature death.
In addition, attaching critical illness insurance as a rider to a life insurance policy adds another layer of protection. This supplementary coverage offers a lump sum benefit upon diagnosis of a covered illness, providing financial support during challenging times.
Should you add critical illness insurance to your life insurance coverage? Or should you keep them separate? Do you even need both? In this post, we answer these questions and more, helping you in your informed decision-making journey.
Is Return Of Premium Critical Illness Insurance Worth It?
Let’s face it: critical illness insurance isn’t cheap. In fact, you can buy a policy that costs well north of $100 in monthly premiums. The prevalence of illnesses like cancer and heart attack leads to a high frequency of critical illness claims, which in turn leads to higher premiums.
But did you know there is a way to get your money back if you don’t make a critical illness claim? For an additional premium, you get the potential of return of premiums paid. However, this added feature raises a question: is the allure of recouping premiums worth the investment?
Critical illness insurance is a pivotal component of safeguarding your financial future, yet return of premium policies introduces a layer of complexity. Prospective buyers grapple with the decision-making process, weighing the advantages and potential drawbacks of adding the rider.
In this comprehensive guide, we aim to demystify the return of premium riders. By the end, you’ll have the knowledge to make an informed decision.
How Critical Illness Insurance Riders Safeguard Your Future
Critical illness insurance offers financial support if you are diagnosed with a life-threatening disease, like cancer or heart attack. The lump sum benefit paid by the insurance company can help cover medical costs and pay for daily living expenses while you focus on recovery.
While the base critical illness policy provides the core coverage, you may consider upgrading it for better protection. That’s where critical illness insurance riders come into play.
What are critical illness riders? Which ones can you add to your policy, and which ones are worth it? In this post, we delve into the intricacies of these add-ons, illustrating how they extend beyond standard policies to provide a crucial layer of protection.