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June 2014 - The importance of life insurance

The importance of life insurance

☳ by Adam Aspilla

Many if not most people ignore the importance of life insurance especially if they are healthy. In fact, for those with existing life insurance, many of them when they experience financial difficulties, the first thing they do to reduce family expenses is to cancel their life insurance policy. 

Why cancel the life insurance instead of reducing other family expenses to keep the life insurance enforce? The primary reason is they could not see the importance of life insurance for in their minds being young and healthy, death is a very remote possibility to happen soon. 

To undermine the importance of life insurance because you are young and healthy and therefore death is not forthcoming is a recipe of financial disaster to your family and love ones left behind.

We have to realize that death is not a respecter of age and health. We have no control when we are going to die. Death can happen anytime to young and old; and to healthy and to sick people. The truth is, many people die daily around the world, who go to bed healthy and do not wake up in the morning for they die in their sleep.

Moreover, accident can happen anytime, anywhere. In addition, we can be afflicted of a disease without cure like cancer and when it is discovered, it is already terminal. 

In Metro Toronto area the average funeral cost including cemetery, casket and other related expenses is between $20,000.00 to $25,000.00.

If you do not have life insurance and no savings to cover for your funeral expenses, where do expect your love ones to secure the funds for your burial? The writer has clients from time to time who are in debts due the burial expenses of their love ones who passed away without life insurance.

The foregoing is a reality, for the sake of your love ones, keep your insurance policy enforce and if you do not have life insurance you have to get one while you are healthy for once you have a health problem, you may not be able to get a life insurance policy anymore.

The face value should be at least $25,000.00. If you have dependent children, and you are the breadwinner, it is essential to purchase more life insurance for it is a replacement of your income when you are gone.

 

Adam Aspilla is a Senior Financial Counselor of the Debt Clinic of Canada Inc. and the author of the book, You Can Negotiate All Your Debts. He also writes a biweekly column, “What Matters In Life” in “Taliba Newspaper. For free initial, professional and confidential consultation, please call 905-306-7572.