You can’t put a monetary value on anyone’s life? Can you? At the end of the day- life is priceless! Yet if you have a family that’s dependent on you, you need to buy Life Insurance to ensure that if you met an untimely death, your dependents have enough money to look after themselves.
Now, the question arises- how much Insurance coverage does one need. The answer to these questions comes down to how much money you deem necessary to keep your loved ones financially comfortable once your earnings are out of the picture. Before you dive into how much coverage is the right amount of coverage, try to answer a few questions:
How many members do you want to cover for?
Most people looking for Life Insurance in Ontario opt for Insurance to cover their partners or kids. However, the loss might also include your aging parents, siblings, or a close friend.
Do you have a disabled dependent?
There are some people who would need life-long support even if you are gone. If you have a dependent who has special needs or faces any physical or mental disability, you’d need to dig in deeper to pick the right type of Life Insurance.
How long do the dependent need the financial support?
Considering the age of each dependent is important as it would give you an idea of how long would they need the support.
Are you under any debt?
Look for Life Insurance quotes that offer more coverage in case of have a mortgage, credit card debt or any other form of outstanding loan.
Do you have any savings?
No matter how much do you earn in the present, your savings will play an important role in deciding the amount you need to insure for. You have to take into account all of your savings and investments.
As mentioned earlier, while buying Insurance, it’s imperative to keep in mind to go for an Insurance amount which when combined with other sources of income will replace your present income to take care of any additional experience.
“According to a report published on ipsos.com, approx. 70% of Canadians have Life Insurance. It also suggested that 37% of these policy holders review their policies every year. When asked what they consider the most difficult aspect of buying a life insurance, close to 34% mentioned picking up the right kind of coverage and policy is the toughest.”
How Much Insurance do you Need?
To be honest, there is no fixed figure that fits all. Every family is different and everyone’s needs differ. As a thumb rule, one must ensure that whatever policy they pick, it must cover their income, debt, mortgage, and education. A lot of financial experts call it the DIME rule.
Debts: How much do you owe?
Income: How much amount do you need to cover?
Mortgage: The pending amount you need to pay back.
Education: The amount needed to take care of your kids’ educational expenses.
If you are looking for a quick calculation to find out how much amount would suffice to take care of your loved ones in your absence, you can always rely on an insurance advisor. There are a number of Life Insurance agents in Ontario and areas around who can help you get affordable Life Insurance to get the best coverage.
It’s not only the amount of coverage that a Life Insurance company in Ontario helps you with, they also assist you in finding the most affordable Life Insurance and figuring out what works the best for you- a Whole Life Insurance or a Term Life Insurance. For example, to cover your mortgage need, temporary insurance would work the best. Ask any Life Insurance company in Mississauga, Ontario, or any other Canadian city, they will tell you that Whole Life Insurance works best for expenses that aren’t going away, such as your funeral cost.
Contact Us if you’re looking for Insurance and Investment Advisors in Mississauga, Canada. We have a very well-educated team of Insurance and Financial Advisors in Ontario who can help and guide you to achieve your financial goals with the help of best suited Life Insurance in Ontario.