How to choose life insurance
Table of contents:
- What is life insurance?
- How to choose life insurance?
We live in a world of uncertainties. There are hundreds of things that can affect us without even being close to us. Similarly, we have no clue about our future and we the dangers lurking behind the corner. So, how does one prepare for these events?
Well, there is one sure-shot way to create a barrier between you and the unknown troubles. A life insurance plan that covers every aspect of these uncertain events is a must when it comes to saving you and your family from the distress of an unforeseen and untimely death.
Today, we are here to discuss the advantages of having a good life insurance plan and also, we will try to figure out how to choose life insurance. So, let us delve into the world of insurance plans and give you a lot of information that might help you in the long run.
What is life insurance?
- Having a life insurance plan is crucial for you and your family if you reside in a Western country. This is because the cost of medical or dental treatments in these countries is highly variable. It is likely three times more compared to what you would pay in an Indian hospital. Therefore, having a life insurance plan will provide financial security and help you deal with unforeseen medical expenses.
- Medical treatment in Canada can be expensive due to the lack of easy payment options. This is why medical tourism has become popular, as we have some of the world’s best doctors who are also more affordable than their Canadian counterparts.
- That’s where life insurance comes in handy. Let us suppose, just suppose, okay? You have a friend who has invited his family to Canada to stay with him and live a simple life there. But, because of some circumstances, your friend’s father had a heart attack and died unfortunately.
- However, the son of your friend, who has now gained comprehensive knowledge about Canadian laws, had already invested in a life insurance plan for his father. Consequently, the insurance company that your friend obtained the insurance policy from, becomes obligated to pay an amount that had been previously agreed upon between the company and him, before any unforeseen event occurred.
- Life insurance is a way of providing financial security to your loved ones in the event of your untimely death due to medical reasons. Essentially, it involves paying premiums to an insurance company, which, in turn, promises to pay out a lump sum of money to your beneficiaries upon your death. Life insurance is a wise investment for anyone who is employed, regardless of their location. Its benefits extend beyond national borders, making it a valuable asset for you and your family.
How to choose life insurance?
Choosing a life insurance plan solely depends on the person who is paying for it. There are hundreds or maybe even thousands of insurance agencies that offer attractive term life as well as complete life insurance plans. However, when it comes to having a complete cover for you and your family after your untimely demise, complete life insurance is a must as it gives multiple benefits to your family.
Let us see some of these benefits in detail;
- Income after death: If a customer of an insurance company has a life insurance plan with them and unfortunately passes away, the insurance company becomes responsible for paying out to the family of the deceased. This payment is made only if the deceased had already sorted out the life insurance plan with the company before their passing.
- Business continuation: In Canada and around the world, insurance companies cannot restrict the amount given to the family. This means that the family has complete freedom to use the funds however they see fit, including keeping the deceased’s business operational.
- Child support: In the event of the natural death of a senior family member, the family is often left shocked and disheartened. A significant amount of money can be of great help to them during these difficult times.
- Funeral and other costs: If the family of the deceased is already struggling in Canada, this money can help improve their quality of life.
- Debt payment: In case the deceased has any outstanding debts, the amount given by the life insurance company can be used to repay them.
To sum up, a life insurance plan is a guarantee for your family that they will be taken care of even after you are not there anymore. This is supposedly the best decision one can take for serving their family and loved ones.
- Is life insurance expensive?
If you are in Canada, there are small sums that you have to pay every month that makes it easy for people to afford a life insurance plan
- Can I get life insurance if I am 40 years of age and live in Canada?
Yes, you can surely get life insurance as you are a Canadian citizen. Just find the best-fit plan for yourself and live a carefree life.
- Is life insurance good for my family too?
Yes, if someday in an unfortunate event, you have an accident and you pass away (just an example), then your family will get a good amount of money that they can use however they intend to use it.
- Who gets the money if I have no family?
The person who you have chosen as a nominee in your insurance policy will receive the amount.
- Can I change my life insurance plan mid-way?
This depends on the insurance company that you have chosen to do business with.