Know The Basics Of Life Insurance To Protect Your Family

The traditional rhyme of “First comes love, then comes marriage, then comes a baby in a baby carriage” follows a path many couples take. However, it doesn’t reflect the more modern financial implications that accompany adulthood. From car payments to mortgages, Registered Education Savings Plans (RESPs) and Registered Retirement Savings Plans (RRSPs), the costs associated with growing up can feel overwhelming. It is important to remember that investing in the future of oneself and one’s family is worthwhile, even if it means taking on big expenses in the present.

Insurance is highly valued for its contribution to peace of mind. Life insurance is always used as no one lives forever unlike home and renters insurance and even car insurance which you may never actually have to make a claim for (fingers crossed). Ultimately, life insurance serves an essential purpose in ensuring one’s security.

What is Life Insurance?

Life insurance is a contract between you and an insurance company. The insurance company agrees to pay a set amount of money to your family in the event of your death. Life insurance is a type of insurance that provides financial protection for your dependents in the event of your death. It can be divided into two main categories: whole life insurance and term life insurance. Whole life insurance is a type of policy that provides coverage for the entire lifetime of the insured and typically has a cash value component. Term life insurance, on the other hand, provides coverage for a specific length of time. This policy does not have a cash value component and only pays out if the insured dies within the term period. Both types of policies can provide financial security for your loved ones in the event of your death.

Who Needs Life Insurance?

Life insurance is an important financial tool for many people, both young and old. It is an important form of protection for those who have dependents, a large debt load, or any other financial obligations that they would not be able to take care of in the event of their own death. Even if you don’t have a family and don’t think you need life insurance, it is still a good idea to consider it as a way to protect your assets in the event of an unexpected death. Life insurance can provide peace of mind and financial security for your loved ones when you are no longer around to provide for them.

Can I Get Term Life Insurance Without a Medical Exam?

Yes, you can get term life insurance without a medical exam. This type of policy is known as “no exam” life insurance and is becoming increasingly popular as it eliminates the need for a physical exam and reduces the time it takes to get coverage. No exam policies typically have lower face amounts available and may cost more than traditional term life insurance policies because they do not require a medical exam. In addition, the underwriting process is typically more lenient and may offer shorter waiting periods to get coverage.

Conclusion

Knowing the basics of life insurance will help you protect your family. What are some things to keep in mind when shopping for life insurance? 

Aneta Alaei

Aneta is a Toronto-based mom of four that loves a good meal, great company, and learning something new. In her free time, you can find her trying to keep yet another plant alive.

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