As we travel through the journey of life, our financial needs and obligations undergo constant change. For example, your financial obligations increase once you are married, and continue to do so as your family grows in size. It should come as no surprise that insurance varies in importance at different stages of life. Proper planning at each stage of life is necessary to ensure that you and your dependents are protected. Without knowing the risks and a plan to minimize the risk, you are potentially exposing your family to a financial disaster. Here are which types of insurance you should be aware of at each stage of life.
Life, disability, critical illness and long-term care insurance represent a significant commitment by consumers to protect themselves and their families in the event of a disaster. They've put their trust and money in the insurance companies with which they signed the contract. In return, they expect their beneficiaries to be able to collect on the claim when the time comes. But what if the insurance company becomes insolvent? There is a chance that it may happen, since benefits are usually paid many years down the line, and anything can happen in the meantime. Even large insurers are not immune to insolvency. Much like the Canadian Deposit Insurance Corporation protects investors from deposits held at banks, Assuris protects policy owners from the failures of insurance companies.
There are many reasons to buy life insurance: for final expenses, to provide and income, to leave an inheritance, and more. But life insurance can be a very costly commodity. It has to be for the insurance company to be viable. You are purchasing hundreds of thousands and in some cases, over a million dollars of coverage, in exchange for (give or take) one hundred dollars a month. While the cost may seem astronomical especially since your household already has other fixed living expenses, life insurance is a must if you have a family dependent on you. Since the cost is unavoidable, the next best thing is to find ways to reduce the cost. Here are 13 tips to help you save on life insurance.
When you apply for a life, disability, critical illness or long-term care insurance policy, the insurance company that you're applying to will want to know as much detail as they can about you. They will need to assess your risk in a process known as underwriting. Having an abundance of medical, financial, occupational and lifestyle information about you will help the underwriter determine if you are eligible for insurance, and if so, at what rate. Applicants considered high risk will have their policy rated, while applicants with lower than average risk may be rewarded with a preferred rate.
The best reads in personal finance, investments and insurance from the week of April 5-April 11, 2014.
Last week we talked about Manulife Synergy, a combination insurance that incorporates life, disability and critical illness insurance. As part of a series reviewing insurance products from Canadian insurance companies, this week we will focus on Desjardins Life with Long-Term Care Advance. Don't be put off by its long name, as it may be just the right product for you. As implied, its a type of combination insurance that incorporates life and long-term care insurance. We'll begin by summarizing some of its features.
As more and more baby boomers are entering retirement, they will begin to find that the retirement that they envisioned is quite different than previous generations' versions. What used to be a simple and short retirement supported with generous government assistance is now turning into a complex experience accompanied by cutbacks, market volatility and non-guaranteed pensions. With more investment options than ever before, many seniors are struggling to find the optimal asset allocation for retirement. On top of that, many will face chronic health issues that will adversely affect their standard of living towards the end of life. Here are four financial risks in retirement that seniors face today.
When people talk about life insurance, they immediately think of the working class with a family that depends on them for their income. The loss of their lives would have a devastating effect on their families’ finances, and life insurance on their lives is common to prevent such a loss. While that may be the most common demographic that requires insurance, the elderly segment of the population should not be neglected. In this post, we will discuss the types of insurance seniors need.