Life insurance – a multi-purpose financial planning tool
Life insurance is best known for the financial protection it provides in case of death. What many people don't realize is that life insurance can also be a powerful financial planning tool for all stages of life.
When buying your first home
Consider life insurance as a more affordable, flexible alternative to the mortgage insurance offered by your lender. Because the policy covers you and not your property, the benefit amount won't decline with your mortgage balance and you can switch from one lender to another without affecting your coverage.
Term life insurance for your early years
Protecting your family from financial hardship should you suddenly die will always be a top priority. Term life insurance offers short-term protection for higher amounts, at a more reasonable cost than permanent life insurance.
Enrolling when you're reasonably young and healthy allows you to lock in your insurability at more affordable rates and ensures that your family's future income needs are taken care of in the event of your unexpected death.
Permanent life insurance to take you into the future
Once your immediate needs are met, consider adding permanent life insurance coverage sometime down the road. Permanent life insurance coverage will increase the value of your estate when you die. Not only can this help you leave a legacy for your heirs, it also helps ensure your loved ones have sufficient funds to settle your final estate taxes, capital gains and settlement costs, and preserve assets such as the family cottage, family business, or other investments.
What's more, if you've always been involved in charitable giving, you can continue to give after you're gone by naming your favourite charity as a benefactor of your life insurance policy.
Life insurance is more than simply financial protection for your unexpected death – it has expanded to become a valuable component of your overall investment portfolio.
Do you have a plan in place to meet your personal goals and financial security needs?
Investigate your options:
Contact us to speak to a licensed representative who will walk you through the various plans and options available to you.
OTIP has affordable life insurance products designed to protect you today and in the future. Ask about OTIP's LifePlan 80 and LifePlan 100 insurance plans!