Life Insurance 101 – Young Guys Finance
November 29, 2017
Be sure to check out FSCO’s website here for more information about Life Insurance: http://bit.ly/2zc52Q2
We also did a video about Supplementary Health Insurance and Dental Insurance, check it out here: https://youtu.be/NEdGNwVs8qU
As a part of Financial Literacy month, we’ve partnered with the Financial Services Commission of Ontario, also known as FSCO to talk about life insurance. Specifically, what it is, how it works, and why it’s important.
We also did a video explaining how health insurance works, you can find the link below in the description.
Life insurance works similarly to other insurance plans or products. Throughout the life of your policy, you pay a monthly or annual amount, called a premium, into a pool managed by an insurance company, called the insurer.
When you pass away, expectedly or unexpectedly, the insurer will pay a lump sum, known as the death benefit, to your beneficiary or estate.
A beneficiary is someone that you choose to receive the lump sum when you die.
This money can be used to pay off funeral costs, mortgages, credit cards, or any other debts.
You might be asking, why do I need life insurance? Remember that not everyone NEEDS life insurance, but it is another product to consider in your financial plan.
If you’re the main provider for your family, in the event that you pass, will your family be able to cover monthly expenses like the mortgage, without you? A life insurance payout could alleviate the financial stress.
It’s hard for young Canadians to think about life insurance so early in our lives, because we’re just getting started. It’s hard enough to think about the next couple of years and even harder to think about retirement and beyond.
But the great thing about getting a life insurance plan when you’re young is that the monthly premiums, are often LOWER than if you started later in your life.
Our thoughts are that life insurance isn’t necessarily required for everyone, but it’s definitely worth considering if you have student debt, a mortgage, or if you’re currently the only income earner in your family.
We suggest that you talk with your partner and family to determine if life insurance is right for you.
For more information about life insurance in Ontario, we encourage you to visit FSCO’s website. See description for link.
Again, thank you to FSCO for working with us to spread the word about life insurance to Canadians.
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