Life Insurance plays many important roles in Financial, Family and Estate Planning. Some common uses are:

• Providing replacement income for your dependents in the event of your death;
• Emergency fund for your family and to fund your children's education;
• Planning for the unthinkable;
• Final expenses such as funeral & burial costs and to pay any deferred income taxes owing;
• Cash to service or pay off outstanding personal or business loans, credit card debt and mortgage(s);
• Funding of business buy-sell agreement or partnership agreement or assist in succession planning of a business;
• Wealth transfer;
• Tax-sheltered accumulation to supplement retirement income; and
• Capital Gains tax funding.

Some important factors to consider when purchasing Life Insurance will be based on your particular situation such as your age, health, income, other investments, financial loans, tax and dependents. There are many products available in the marketplace that could be considered short term, or temporary solutions such as term life insurance as well as long term solutions using permanent products such as whole life or universal life are cons.  Your circumstances and financial means each play a role in determining the best solution for you.

Ownership structure of life insurance plans and beneficiary designations should be planned carefully and also reviewed on an on going basis. We recommend that you contact a licensed insurance professional to review your personal needs and budget so that a carefully tailored plan can be recommended to fulfill your short term and long term life insurance requirements.

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To learn about life insurance for your child, and key takeaways, refer to Insights and advice published by Canada Life by clicking on the previous link.