|Most Common Mistakes|
Most Common Mistakes People Make Regarding Life Insurance
Life insurance protects against the risk that an insured person will die too soon and be ..
|The Significance of Funeral Insurance for Seniors in Canada|
What is Funeral Insurance and why is it Important?
Funeral insurance is the way to make sure the expenses for the funeral of a policyholder are cover..
|Insuring your biggest investment--- your home|
Your home is probably the biggest investment you'll ever make. when arranging mortgage,your mortgage company offer you mortgage insurance. have you co..
|Insurance- Life, Visitor, Critical, RRSP, RESP-Free advise-Rajneesh|
I deal with all major Canadian Insurance companies. I am professional educated and have very competative rate. Please call me for getti..
|THE BENEFITS OF UNIVERSAL LIFE INSURANCE|
Universal life insurance plans have distinct benefits, which set them apart from term, permanent and other life insurance plans. Universal life insura..
|What is CMHC Mortgage Loan Insurance?|
CMHC’s Mortgage Loan Insurance is an insurance that covers your lender’s risks associated with financial loss that can occur when a homeowner defaults..
|Travel and health insurance is required for a Super Visa application|
For faster family reunification, Citizenship and Immigration Canada has introduced Super Visas for parents and grandparents of Canadian citizens or pe..
|Landing CHECKLIST....for newcomers|
Hi Canadian Desis,
I see so many posts on this topic that I'm making this LANDING CHECKLIST to all newcomers....if I missed something please add it t..
|Buying a Home: What You Can Afford|
Buying a Home: What You Can Afford
If you're thinking of purchasing your first home, you probably have a lot of great ideas about what you'd like - ..
|Buying a Home: What You Can Afford|
If you're thinking of purchasing your first home, you probably have a lot of great ideas about what you'd like - such as several thousand square feet ..
The purchase of a home is one of the biggest decisions and significant financial investments a consumer makes. It is extremely im..
|How much will the house really cost me?|
How Much will it Really Cost?
Once you have figured out the home price range you can afford and the type of mortgage you qualify for, you will need t..
|Roadmap for new comers why and how to buy House in GTA|
I am an IT guy and was not knowing anything about mortgage/house buying. Recently I bought a house after one and half year of immigration to Canada, a..
|How to save for a down payment|
Owning your own home has a lot of payoffs, especially these days when mortgage rates are still among the lowest in 30 years. There are also many housi..
|First Time Home Buyer Information|
Making the right choice when it comes to purchasing a home is a matter of good planning, not good luck. No one person can be expected to know everythi..
|Canadian Immigration & CitizenshipMy Experiences with CanadaAbout CanadaTips for job findingsHousing and MortgagesMoney MattersTips for newcomers to CanadaRESP & InsurancesEducation in CanadaMiscellaneous
Right Protection = Right Product + Right Amount
There is no doubt that everyone needs life insurance, but the real question is how much and what kind of insurance policy?
First, let’s talk about how much life insurance coverage you need
In order to calculate you total insurance needs add up all your debts, mortgage, and financial obligations to others. Determine how much money your family will need to meet their ongoing needs if you are not around to help. These needs include your income replacement and kids educational expenses. Once you have all the numbers available, add them up to get your life coverage amount. It is very important to get the right coverage amount because if you are underinsured, it will put your family on financial risk in case of uncertainty on other hand buying too much coverage will become a burden on your budget.
Once you have determined how much life insurance you need, next step is choosing the right product
When it comes to choosing right type insurance policy, for most people there is one word answer, “term”. Term insurance is the cheapest and you can buy as much as you want to cover your needs. Buying term insurance makes sense because your obligations have a time period, such as 25 years amortization on mortgage. Therefore, buy 25 year term life insurance policy.
Other type of life insurance is permanent life insurance, such as whole life and universal life. It’s expensive and you pay premiums for whole life. Permanent insurance comes into play when you need estate planning and concern about tax consequences at death. In fact, most of us are living on tight budget and it does not make sense paying too much for life insurance when you have hard a time saving for present and future needs.
Analyze you current financial situation and figure out your insurance needs. Buy the right insurance product according to your current needs and future goals.
Harnek Singh Uppal (416) 723-3226
Discuss this article
|Article Rating is 7.0000 (Good).|
Rated by: 4 voters.
|You can also Submit an Article and help other community members. Thanks.|