So you’ve decided to get life insurance to help protect your loved ones. Smart decision! Now you just need to figure out which insurance plan to get and how much coverage. The good news is, it’s not that complicated. A licensed Insurance Advisor can guide you to the right plan based on your age and stage, but to make things easier, do a little legwork upfront.
1. Make a list of your major debts. Consider mortgages, car loans, credit card balances, tuition – basically anything that would throw your loved ones off balance financially if they had to cover these costs. Factor in your final costs too; inmemory.ca puts the average traditional Ontario funeral at around $13,616, and an insurance policy payout is a smart way to help cover that expense.
2. Think about who depends on you financially. If you’re younger, it may be a new spouse and baby. If you’re middle-aged, it may be your spouse and your school-aged children. If you’re nearing retirement, your dependents may be your adult children and spouse.
3. Consider your life stage and how an insurance payout could help bridge any financial gaps. What life stage are you in and what financial challenges are you facing?
Just starting out. If something happened to you, could your spouse get by on their income alone? If they had to work, could they afford childcare costs? An insurance policy payout could be a big help. CAA 5-Year Term Life Insurance offers affordable coverage for $50,000 to $500,000 at a fixed 5-year rate and it’s suitable for younger people offers longer-term protection in 10-year, 15-year and 20-year terms, with coverage of $50,000 up to $1,000,000 is at locked-in rates for your term.
Middle-aged and married. Maybe you have a home or car that’s not fully paid for or children in university, rolling credit card debt. If you’re approaching retirement, your insurance group plan at work may be ending soon. CAA Lifetime Protection Plan is a great solution for people up to 75 years old; it offers coverage from $5,000 up to $25,000 for your entire life.
Retired. You may have a pension or RRSPs, but are these enough? A policy payout from a CAA Lifetime Protection Plan could help your spouse stay in your home, pay for grandchildren’s tuition, or be the legacy you leave for a favourite charity. If your medical history or age makes it hard to qualify, consider CAA Guarantee Issue Life Insurance; it provides coverage without any medical exams.
4. A CAA Insurance Advisor can get you the right coverage, along with exclusive benefits. Offered in partnership with Manulife, CAA Life Insurance comes with a choice of plans to suit various ages and stages. CAA Members enjoy exclusive benefits including savings of 25% on coverage of $250,000+, savings of 30% on coverage of $500,000+, and 5% additional savings for paying your full premium annually. A CAA Licensed Insurance Agent can tell you more.