How would your family fare without you? When was the last time you took a few moments to think about how your family’s lifestyle would be affected by losing you? Not only does your family depend on you for love and emotional support, but the fact of the matter is, they also rely on your continued earnings to provide for their daily living needs. This is why it’s critical you maintain sufficient life insurance coverage. In the event of your death, life insurance proceeds can be used to eliminate debt, provide a home free and clear of mortgage payments, guarantee funds for a child’s education and to replace the income you generate today that maintains your family’s lifestyle. How much is enough? A common rule of thumb suggests you should maintain life insurance coverage equal to ten times your income. However the danger of a ‘rule of thumb’ is that it does not account for an individual’s age, stage of life or personal and family circumstances. Instead of relying on a ‘rule of thumb’ that may not apply to you, it is best to assess your needs based on your unique situation. We can help you determine how much money would be needed to produce a steady income for your family’s ongoing needs and how you’d choose to address mortgage and other debt obligations like post-secondary schooling for your kids, and other goals in the event of your death. If you’re a stay-at-home parent, don’t assume your lack of income means you have no need for life insurance – replacing your family role with professional child care and domestic help will be costly as your spouse continues in their career. Going beyond life insurance At the same time, don’t overlook the financial toll a disability could take on your family, especially if it affects your ability to earn an income. Appropriately-designed disability insurance can fill the void in the event you are no longer able to work or should you have no choice but to accept a lower-paying job. Critical illness insurance usually pays a lump sum to you should you be diagnosed as having a life altering medical condition specified in the particular policy – such as a heart attack Insurance Solutions or stroke, or if you are diagnosed with a life threatening disease like cancer. Ensure your Will is updated regularly, making sure you specify whom you’d like to take care of your children in the event you and your spouse should die simultaneously. This should be discussed with your designated guardian(s) before your choice is formalized in your Will and provisions should be made to ensure funding is available to allow your guardian to carry out his/her responsibilities. Also, make sure you appoint an executor (liquidator in Québec). This is the person who will act on your behalf to settle your personal affairs, including the financial aspects of your estate. Talk with us today to ensure you’ve done all you can to look after the needs of your family in the event of a un foreseen circumstance. Gaby Abdullah / RISK MANAGENT - INVESTORS GROUP Planning
Posted on: Wed, 17 Jul 2013 17:02:54 +0000
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