Canadian Budget Binder

I’m sure there are other questions that will roll around in your head but it’s essential to put them all down on paper. Understand why you are doing this is imperative. Once you know why then you can calculate how much insurance coverage you might need. Don’t think you automatically need 1 million dollars each. You will pay for this in high premiums and it’s not worth it in the long run if it’s not necessary.

Most agents we chatted with suggested purchasing 5-10 times our pre-tax salary in Life Insurance, which is what we did. Although your health is an important factor when determining how much,the cost and for how long. This is why buying early when you are healthy makes a world of difference.

 What kind of Life Insurance do you need?

Good Question and one that we asked over and over again. The answer simply is you need what is best for you. What’s going to make you sleep better at night? You need to be aware of all your options and please read all the fine print. I also suggest researching the products, shop around and chat to different insurance agents.

We have a 25 yr Term Life Insurance costing us $135.05 a month which is very high but given our age, we were smokers (we quit Jan 29,2012) and current health conditions it’s going to be that way for at least this year. We are hoping to bring the cost down after one year being smoke-free.

You may have heard about Whole and Universal Life Insurance in the past.

Term Life Insurance is different from Whole or Universal Life Insurance which typically has investments with-in and cost much more. You should check all the options with an advisor so you are informed to choose what insurance is right for you. 

When you are young and healthy and/or have a family Life Insurance can be one of the best investments you will make. It’s peace of mind at least for us even though we have no children. We both want to know that in the event that something did happen that the other will be ok. That is worth the money to us.

If you are thinking about getting Life Insurance there is no right time you need to wait for, the time is likely now. I’ve only just purchased life insurance in Canada and had to understand all the facts. If you wait until you’ve had a heart attack or find out you are suffering from a disease it may be too late. Your best option is to research and learn now!

This is a great article on Myths about buying Life Insurance that you should read at kanetix.ca. Reading this article just confirmed what others were telling me when I was asking about Life Insurance in Canada.

Some of the points that I have heard since I’ve been in Canada are below however we chose to research them before we made our decisions.

• I have mortgage life Insurance- If you’ve done your research you will know that it is cheaper to get term life insurance if you are healthy and young in most cases and it pays you the entire policy not just what’s left on your mortgage.
• I don’t need it- I think I covered it above about single folks but unless you are filthy rich and don’t feel you need it, then you need it! Full stop!
• I have it through my work- Yes but have you read the fine print, do you understand the policy. Probably not or not enough. Look into this first before making a final decision.
• It costs too much we have no money in the budget- If you think it is costly now wait until something happens mate you will be cursing yourself that you even thought that. The costs of death can far surpass the cost of life insurance over the long-term if something were to happen. Make the decision now for your future!

So now we have a couple where one has had a heart attack and the other has diabetes and have had no luck getting Life Insurance. If one of them should pass he/she h will have to sell the house to pay for funeral costs and living expenses as they cannot afford it. Don’t let this happen to you. Take control of your life and your future!

So, “What If” they prepared for this scenario in the past, yes you are correct they would be soaring through the future.

Not everyone likes to think about Death and the Future but I urge you have butchers at it. Living your life behind glass windows will only allow you to see life’s reflections  from the inside out rather than all around us. You may be happy one day you did!  Get out and Live life to the fullest.

Cheers!

Related Money Saving Articles:

• Is the gas tank eating into your budget?
• Tips to curb emotional spending and not break the budget
• Eating Out vs Eating In : The Comparison
• How we designed our Budget Step 1

Photo Courtesy of:Copyright (c) <a href=’http://www.123rf.com’>123RF Stock Photos</a>

Copyright (c) <a href=’http://www.123rf.com’>123RF Stock Photos</a>

Copyright (c) <a href=’http://www.123rf.com’>123RF Stock Photos</a>