Insuring our property is a matter of justified prudence. On the other hand, ensuring that our loved ones have sufficient income in the event of our death is a part of clairvoyance, generosity and the affection we have for those who are dear to us. But do the feelings we have lead us to the right life insurance decisions? Initially, the principle of life insurance is as follows: a person pays a premium, on a monthly or annual basis, to an insurance company. In return, it receives from its insurer the guarantee that the beneficiary or beneficiaries it designates will receive a certain sum if his death occurs during the period of validity of the established contract. The amount of the premium to be paid by the insured is set according to their life expectancy, which means that the younger and healthier the person, the more he has access to high coverage at a lower cost: everything is in fact calculated according to the 'risk' that the individual represents for the insurance company. This, of course, sums up in a few lines a much more complex protection system about which you should not hesitate to consult advisers, shop around and compare products in order to negotiate or renegotiate the best insurance policy. insurance at the most advantageous price.
But before starting the discussions, we must ask ourselves the question that should come before all the others: do we really need life insurance? that the individual represents for the insurance company. This, of course, sums up in a few lines a much more complex protection system about which you should not hesitate to consult advisers, shop around and compare products in order to negotiate or renegotiate the best insurance policy. insurance at the most advantageous price. But before starting the discussions, we must ask ourselves the question that should come before all the others: do we really need life insurance? that the individual represents for the insurance company. This, of course, sums up in a few lines a much more complex protection system about which you should not hesitate to consult advisers, shop around and compare products in order to negotiate or renegotiate the best insurance policy. insurance at the most advantageous price. But before starting the discussions, we must ask ourselves the question that should come before all the others: do we really need life insurance? shop around and compare products to negotiate or renegotiate the best insurance policy at the best price. But before starting the discussions, we must ask ourselves the question that should come before all the others: do we really need life insurance? shop around and compare products to negotiate or renegotiate the best insurance policy at the best price. But before starting the discussions, we must ask ourselves the question that should come before all the others: do we really need life insurance?
A hypothesis: you die ...
Not very encouraging as an approach to the problems. But the exercise is the same as that of the will and, in both cases, it does not kill. So, suppose you die. Would there be one or more people whose standard of living would be threatened by the loss of your income? Are your children currently dependent on you? Would your spouse be in a difficult material situation if you disappeared? According to Élise Cormier, professor of consumer science at Laval University, life insurance is only really necessary for people who have this type of responsibility towards their loved ones, whether they are more or less less young, alone or in a couple, at work or in retirement. However, many people, out of simple generosity, pay life insurance to possibly favor a parent who, in fact, does not wait for this money at all to live. We must then weigh what it costs each year to plan this 'gift' that you will never give in your lifetime. Other people choose this kind of contribution for the benefit of a movement or a cause in which they believe. Here again, it is a desire to be useful rather than an indispensable service. But let's say you have addicts: for how long? Women sometimes forget to reassess their family situation from time to time and remain insured as if their roof continued to shelter the children. If they have had a new address for some time now, have a job and are now getting by on their salary alone, it may be time to reconsider the situation. Adjustments to major changes are made possible precisely by variable-term life insurance contracts.
What is the difference between whole life insurance and ... a '100 year term'?
There are endless products on the life insurance market, but they can be grouped into two broad categories: whole life insurance and term life insurance. The first, as the name suggests, is permanent in scope and promises the coverage provided from the time the contract is signed until the death of the person whose life is insured. The premium remains the same for the entire term of the contract, but is much higher than for term life insurance. In return, it includes a savings component since a 'money reserve' can be claimed after a certain number of years if the contract is terminated. In addition, shares in the profits of the company may be paid to you, depending on the health of the company (these amounts are of course never guaranteed). For Élise Cormier, this savings vehicle is of little interest to someone who is interested in managing their savings and who will find better investment conditions elsewhere. For her part, Clorinde Desjardins, who is a life insurance broker and who has worked in the field for fifteen years, believes that this type of contract is in decline; now, many of his clients prefer to take out term life insurance which costs less, offers more flexibility and can even extend up to 100 years for followers of a certain ... permanence in the temporary ! Unlike permanent insurance, there is no possibility of redemption, nor of participation payments. On the other hand, the Term life insurance adapts to the needs of the insured according to his obligations for a specific period: number of children, professional situation of the spouse, etc. How long should you insure your life according to your children? Élise Cormier explains that, nowadays, we subtract from the number 25 the age of the youngest child: we thus obtain the recommended duration of the life insurance contract. In other words, we consider it wise to financially protect our 'little ones' at least until they reach their quarter of a century. Five years, ten years, twenty years: the term varies according to the circumstances. However, you should know that at the end of your contract, if you wish to continue to subscribe to life insurance, the amount of your new premiums will be established according to the age you will have reached; for equivalent protection, the costs will then be significantly higher.
$ 25,000? $ 200,000? What is the appropriate coverage?
The best tool to have on hand to establish the amount of coverage needed is your own budget, that of the family or the couple as the case may be, which allows an accurate view of income, property, expenses and debts. From this table, one can determine exactly what this family or couple needs to maintain their standard of living. Then, we establish what is, in the whole table, the financial contribution of the person who intends to take a life insurance, contribution which should be replaced in the event of death. Ultimately, we arrive at an amount of coverage included in a contract of more or less long term, with higher or lower premiums depending on the age of the insured at the time of signing the insurance policy.
Life insurance for yourself
For Clorinde Desjardins, if taking out life insurance is first and foremost an approach to helping others, it should more often represent for women a bulwark of security for themselves, which they also ensure. personally. 'It is not uncommon that when their husbands die, women find with amazement that the amount they expected to receive from the insurance company is not owed to them since the premiums have no longer been paid. long paid by the insured. 'Forgotten or personal decision of the man who did not warn his wife? The same problem can arise when two spouses separate and there is designation in the contract of a new beneficiary without the knowledge of the previous one. This is why Clorinde Desjardins regularly suggests that its clients be the owners of their partner's life insurance contract. The person then pays their spouse's life insurance premiums and, conversely, the latter agrees to the same arrangement. In this way, everyone sees to their own interests. Do the couples to whom she offers this formula see it as a mark of mutual mistrust? According to the insurer, everything is in the art of presenting things so that this formula appears above all as a means of making money. life insurance foolproof protection. After all, we are never so well served .