Insurance products offered by the Life companies in Canada provide a stable anchor to one’s overall investment and estate planning strategy. The use of the various types of insurance plans and products that are available can have a significant financial impact on our life from the day we are born to the time of our ultimate passing. There are many Canadians who either don’t have enough insurance or who may have none at all. In this article I intend to provide a brief comment on how life insurance can be utilized at various life levels. Obviously in making a decision on the purchase of any life product one must consult with a licensed agent to determine the needs and amounts required for a specific product but what I want to provide here is an outline of how life insurance can be considered at various times in the life cycle.

At birth parents can take advantage of the fact that the cost of child insurance will never be cheaper. As well, the child policy guarantees the future insurability of the child regardless of their heath condition later in life. By utilizing a whole life plan premiums are guaranteed and higher death benefits and cash values will accrue.

As one gets started in his\her adult life insurance plays important roles as well. Once living together in a relationship the purchasing life insurance is a great first step in protecting your partner and family if an unexpected tragedy should occur. As time passes and incomes increase the purchase of a home is often the next financial step. Given that buying a home may be the largest debt that you will take on in your lifetime the need to protect one’s family from the financial burden of that debt should the unexpected happen can be remedied by having an adequate life insurance product in force.

As time passes the use of life coverage can provide additional benefits. For example, the ownership of permanent life insurance is an effective way to preserve wealth. It will help ensure that homes, cottages or investments don’t have to be sold to pay large capital gains taxes at death. As well Insurance can pay final funeral costs or other debts and provide peace of mind for loved ones in a difficult time. Alternatively effective life coverage can be used to add value to one’s estate to provide a legacy for either future generations or a favourite charity.

The use of insurance products whether it be for life, disability coverage or critical illness protection should always be considered in one’s financial program. Many types of plans, terms and benefits exist in the variety of products offered by the Canadian Life Insurance companies. Spend the time with your insurance advisor to ensure you have the best one’s for your needs.

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