Slide Do you need help
getting out of debts?
Find out your options! For free professional and
confidential initial consultation, call:
adam@debtcliniccanada.ca (905) 970-0439
Slide Do you need help
getting out of debts?
Find out your options! For free professional and
confidential initial consultation, call:
(905) 970-0439 adam@debtcliniccanada.ca
Slide Do you need help
getting out of debts?
Find out your options! For free professional and
confidential initial consultation, call:
(905) 970-0439 adam@debtcliniccanada.ca
Slide Do you need help
getting out of debts?
Find out your options! For free professional and
confidential initial consultation, call:
(905) 970-0439 adam@debtcliniccanada.ca

June 2010 – The importance of Life Insurance

By:Adam Aspilla
June 25, 2010

Good financial planning includes regular savings for the future to avoid financial trouble down the road. In fact, 21:20 of the book of Proverbs says, “The wise man saves for the future…” It is our common belief that financial crisis comes when a person has no job, no source of income, or when there is a recession.

The above common belief is not always true. In fact, there are countless people with good employment income, no recession and are still in financial trouble because they do not know how to manage their finances. They spend more than what they earn and as a result, they are loaded with debts, and they do not have savings at all for emergencies like: sickness, accident, death or loss of a job.

Of the above mentioned emergencies, death is the worst of all, especially if it is a death of a breadwinner. When a breadwinner dies, his/her income also dies with him/her. What happen to dependents (young children) when the breadwinner dies without savings or any other properties of value to replace the lost income? Children would live in poverty. They may not be able to pursue their education and be forced to work menial jobs just to survive.

If you are a breadwinner and you could not save despite your employment, if you are concern for your love ones who are dependents on your income, the best thing you can do is to buy a life insurance while you are healthy. Life insurance is a replacement of your income when you are gone. The amount of insurance would depend on how young and how many children you have.

If your intention is for your children to pursue higher education, not only for their basic needs, despite your passing away, you would buy an insurance that would also cover expenses for their education.

What about the cost of life insurance? It is very affordable. If you are young, healthy and do not smoke you could buy a life insurance with a face value (coverage) of $100,000.00 with a monthly premium from $40.00 to $60.00 monthly. It is only about $2.00 a day or even less. There are many types of life insurance, one of the cheapest is Term Life Insurance.

Many of us just ignore the importance of life insurance, if you just imagine, if you own a car you need insurance before you drive it. If your car needs insurance, how much more is your life?

The more you need it, if you have dependents. Even if you do not have dependents you still need life insurance for the cost of a decent burial alone is at least $15,000.00, unless you want to be cremated. Where do expect your loves ones get that amount to bury you when you do not have savings or properties of value left behind? Think about it.

Adam Aspilla operates the Debt Clinic of Canada Inc. for more than 30 years.  He was a former financial planner, a former mortgage broker, and the author of the book, You Can Negotiate All Your Debts.  He also writes another column, “Biblical Perspectives” in this paper. For a free initial, expert, professional and confidential financial consultation on your financial issues like: Debt Consolidation, Credit Counseling, Consumer Proposal, Bankruptcy, and securing 1st and 2nd Mortgages, call 905-970-0439 or visit www.debtcliniccanada.ca

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