WHAT IS LIFE INSURANCE?
Life insurance is a safeguard against financial hardship for your loved ones. A life insurance contract or policy is a legal agreement between you and the insurance company that guarantees payment of the face value of the policy upon death.
How do you determine how much life insurance you need?
To work out the specifics of your own situation, you will want a financial needs analysis. A Broker (Financial Security Advisor) can help you with your analysis. It will provide you with a picture of the financial capital your survivors would need should you die. It considers assets that would be available to them, liabilities they would have to deal with, taxes payable upon death and continuing family needs for income.
Statistics on premature death risk causes
Source: All cancer statistics and citations are drawn from the “Canadian Cancer Society's Steering Committee": Canadian Cancer Statistics 2010. Toronto: Canadian Cancer Society, 2010.
Things to consider...
- If you are in a personal relationship (common law or marriage), how much do you contribute to the family budget? If you were to die prematurely, how would your survivor(s) get by, especially dependent children?
- Does anyone else depend on you financially, such as a parent, grandparent, brother or sister?
- If you are a single parent, what financial support are you paying or receiving? How would these be maintained in the event of the contributor’s death?
- If you have a mortgage on your home, would you like it paid off in the event of your death?
- If you have children, would you like to provide for their continued education in the event of your death?
- Are there any charitable organizations or other family members to whom you would like to leave money?
- Could life insurance play a role in business or farm succession plans?
- Could life insurance play a role in paying the taxes incurred when capital property is transferred from one generation to the next?
Source: "Canadian Life and Health Insurance Association", A guide to life insurance, 2012
Beneficiaries: Who is the life insurance for?
The beneficiary is whoever is named (designated) under the policy to receive the insurance money upon your death. Do you want to name a beneficiary (e.g., spouse), or leave the money to your estate or to a trust?
The benefit amount under the Humania Assurance – Insurance Without Medical Exam policy is paid in a lump sum upon death. You are free to choose what you want to do with the insurance money.
What are your needs?
To assess your insurance needs, it is always recommended that you consult a duly-authorized Broker (Financial Security Advisor). If you do not have one, please let us know by email at email@example.com and we will put you in touch with a Broker (Financial Security Advisor) in your area.