Submitted by: Navneet Tumber

3 Ways Your Family Benefits From Your Term Life Insurance Policy

If you have been considering life insurance you may be wondering how your family benefits from your term life insurance policy. There are numerous benefits for your family when you ensure you have a life insurance policy to help protect them when you are gone. For many Canadians life insurance is the difference between a family being financially secure or finding themselves in a financial crisis. Most importantly, life insurance will ensure:

1. Your Family Is Not Burdened By Funeral Costs

When you pass away you don t want to add to your family s grief by burdening them with costly funeral expenses. The costs of an average funeral in Canada range from $7,500 $15,000. These expenses DO NOT include the costs of a cemetery plot or monument. Funerals are expensive, and if adequate planning hasn t been done ahead of time then your family will be faced with many decisions at a time that is very difficult for them. Life insurance can help ease the burden by reassuring them that they will be able to afford the costs of a funeral without too much financial burden on themselves.

2. Your Family Can Maintain Their Lifestyle

A life insurance policy will help ensure that your family can maintain their lifestyle comfortably. This is especially important if you are the major source of income within your family. Generally, experts recommend that your life insurance policy cover 10 times the amount of your annual income. So, if you earn $60, 000 a year the least amount of life insurance coverage you should have is $600 000. If you follow this general rule, it will mean that your family is financially secure. If you are the major source of income for your family your spouse may need to take on a new job or work extra hours to help the family get by. For those without life insurance, during this transitional period their lifestyle could decrease dramatically and sometimes permanently if they have to go in debt to pay the bills. However, having life insurance can help your family:

Keep and maintain the current house they live in

Keep the current vehicles they use

Continue to put food on the table

Cover daily expenses, such as costs of prescriptions, school supplies, clothing and gas

3. Your Family s Financial Goals Are Not Affected

You and your family have a number of financial goals that you have been working towards. You don t want your death to jeopardize these goals, which may include:

Your children attending college or university

Contributing to your child s wedding

Purchasing a new vehicle

Family vacations

Retirement

Unfortunately, if you don t have a life insurance policy your family may be forced to draw from sources such as educational or retirement savings in order to make ends meet and survive financially until they are able to get back on their feet. In worst case scenarios, families with little or no savings may face serious financial problems. How your family benefits from your term life insurance policy is important to understand and hopefully will help you make an informed decision that takes your family s needs into account.

About the Author: Trilogix Financial is an established financial and insurance company which offers a variety of types of insurance including disability and critical illness,group benefits, estate inheritance tax planning and financial planning for individuals and businesses.Visit –

trilogixfinancial.com

Source:

isnare.com

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