Personal Protection Insurance

We work hard to become a homeowner, don’t you think we should protect it? When you're deciding about whether or not to get personal protection insurance, think for a while and ponder these questions. If married, are you a major contributor to the house-hold income and how would your spouse do if that income were to disappear? Do you have any dependents, such as children, and do they rely on your income? Could your family afford to live there without your income? Once you have the answers to these questions, they will likely lead you to the decision about whether or not you need insurance, and if you do, what type of insurance coverage you need to protect your loved ones.  Personal Protection coverage comes in many forms, life insurance to protect your loved ones (or your estate) against your death, disability coverage to protect you in times of injury and inability to work and critical illness to protect you financially at a time when life is “unfair”.

There are differences in coverage from provider to provider, it is important to understand the difference between the very restrictive coverage provided by banks (non-portable) and by our office (completely portable to a new lender and new property).

Young Adult

Similar to most youthful Canadians, your unexpected death may not pose as a financial difficulty for your family and friends, so having life insurance coverage may not be your major priority. But, if you have unsettled accounts or are supporting a family member, life insurance coverage would guarantee that your dependents can receive support if you pass away.  It is also important to understand that life insurance costs go up as you age, so the younger you are when you start your policy the lower the cost (forever).  Disability insurance will cover your mortgage payment for you in a time when you can not go to work due to injury.  If you are in a profession where injury is more prevalent, you will most definitely want to consider this coverage, often times as inexpensive as $10-15 per month.

Married

If you and your spouse own a home, you likely will have a mortgage.  The cost of your mortgage may be greater than either spouse could afford on their own, so having life insurance is extremely important.  Other debts like credit cards and car loans can also bring more burden.  Having life insurance can make a huge difference in the case of a spouse passing and allow the surviving spouse time to grieve without the financial pressures they would otherwise have to work through.  If you are not currently married but plan to be at some point, you may wish to protect your future spouse by being covered today.  It is simple to add or delete beneficiaries to policies.

Family

Whether your family depends on a single income or double, when one spouse passes away, this could have tragic financial effects. Both you and your spouse should have enough life insurance to settle all expenses and allow the surviving spouse the time to focus on the family instead of the finances.

Career

While you are enhancing your career, shifting jobs also implies shifting companies. It is important to know the coverage of your life insurance when you resign from a company and what is available with your new employer. Often there are delays or probation periods when coverage is not available, so having a 3rd party plan maybe necessary.

Business

If you are in business for yourself, think about having a life insurance policy that takes into account the value of your business today and revisit it regularly as your business grows.  The value of your business is often overlooked especially when you are a sole proprietor or the true asset of your business.  Ask yourself what your business is worth today and what would your business be worth if you were gone?

Retired

Upon retiring, go over your life insurance needs with a financial expert. Reviewing your financial situation during your retirement is advisable. The coverage is costly during this period, so you should know the options available and focus on what benefits make the most sense.  Life Insurance can be used in estate or tax planning and could make a huge difference in what is left to your family after the tax man takes his piece.