With credit card bills, a mortgage, utilities and car payments, you may feel that purchasing a life insurance policy is an unnecessary expense you can’t afford. However, life insurance policies have a variety of potential benefits for young working families. Here are five ways a life insurance policy can benefit you.
1. Pay off debt If you’re like most Canadians, you have debt. On average, most households owe more than $70,000 in mortgage debt and more than $20,000 in non-mortgage debt. If you die without life insurance, your loved ones must pay off your debts on top of their own. This could put them in a financial hole from which they’ll never be able to dig themselves out. A life insurance policy will pay out a considerable amount of money to your loved ones, which they can use to pay off your debts (and their own). 2. Give your loved ones financial freedom Right now, you may not be able to leave your children an inheritance if you were to die unexpectedly. However, with a life insurance policy, you can leave them with a substantial amount of money they can use to pay for university or put a down payment on a home. 3. Pay for a funeral Life insurance can pay for your funeral. The average cost of a funeral in Nova Scotia is around $10,000. If you or a loved one dies unexpectedly, this may be a cost you can’t afford. Life insurance pays out a non-taxable sum you can use for any reason, including a funeral. 4. Save a business If you run a family business or are in partnership, you need to be prepared in the event there’s sudden death. Would your business survive if you or your partner were to pass away? A life insurance payout can help keep the business open while you make all the necessary changes and find a new partner. Life insurance gives you added protection that a business insurance policy may not provide. 5. Supplementing retirement income You don’t have to wait until you or a loved one dies to start drawing money from your life insurance policy. Some permanent life insurance policies have a cash value you can withdraw or borrow from to supplement your retirement income. The team at Eisenhauer Insurance Inc. can help you find a policy that protects your loved ones and is within your budget. Life insurance brokers in Nova Scotia At Eisenhauer Insurance Inc., our brokers provide our Nova Scotia customers with the right life insurance for their needs. We also provide travellers insurance, car insurance, and high-risk insurance for drivers with poor records. Contact us in Halifax and Dartmouth, NS, to speak with a broker and get a free quote.