Criss Crombie – the Life and Financial expert here at Empower Brokerage – shares the reasons why he believes everyone should consider getting a life insurance policy. Watch the videos below and you’ll also learn if term life or whole life insurance is best for you!
What are some reasons why you think people should consider getting life insurance?
For me, it’s ensuring that you’re able to take care of your family in the event that something happens to you. They’re counting on your ability to earn an income. If something happens, like an accident or serious illness, having insurance to provide for your family is important. And, it’s really, very affordable. For example, if you’re looking at term insurance, it may be just a dollar a day for coverage.
I hear often people say they lost a family member, who had no life insurance. Then I see the effect it had on their family from not having the insurance. For a stay-at-home mom that wants raise the kids, she now has to get out of the house and go to work, find a job, and support the family because there wasn’t that life insurance in place. I’ve also seen the opposite. When I’ve delivered the life insurance death claim check to somebody – to a grieving widow, who’s in shock of losing her husband – that tax-free check takes that financial stress away. She’s not having to worry about that right now. She can take time to adjust and get used to not having that income because she has the life insurance check. Again, having that peace of mind for just a few dollars a month is just incredible.
Another question: you just briefly mentioned term, and I know there’s also whole so what are a couple of differences between term and whole life insurance?
Well, term insurance allows you to buy a large amount of life insurance for a little monthly premium. The problem is term, by definition, has a term period. It’s going to end after the designated term. It could be a 10-year period, 15, 20, 25, or 30-year term. Again, at the end of the term, there’s not going to be any coverage. The client has to cancel the coverage at the end of the term. If they don’t cancel, then they pay the increase in premium, which is going to be significant.
Whereas with whole life or permanent life insurance, it is there for your entire life no matter how long you live. While whole life is more expensive initially, over your lifetime, it is the most affordable coverage. For clients still working, who maybe just started a family or are running a small business, term insurance seems to be the best solution for them. They get that large amount of coverage at low costs to them. Then, maybe down the road they can look at buying some whole life or permanent insurance to fill in the gaps.
Since insurance is oftentimes overwhelmingly confusing, we want to shed light on this industry by answering YOUR questions. So if you have any questions or concerns, comment below and your question may be the topic of our next video!
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