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RISING WOMEN EXPERT ADVICE...
Do I really need life insurance?
I have to admit I haven’t met too many people who have been overly
excited about purchasing a life insurance policy but for most, the
underlying need to protect someone or something has generally been the
driving force propelling them forward. Whether it’s a new addition to the
family or a new home, the reasons for buying and owning life insurance are
plentiful. And that’s where I’d like to start.
You do own the insurance you have. I have to stress this fact because in my
experience not enough people view it as ownership, but rather as a bill each
month or year that provides no immediate satisfaction. And herein lays the
problem for many. Life insurance is truly a wonderful risk management tool
that should provide owners with a sense of security as well as comfort
because, if the worst case does happen, it enables them to provide for their
families after they’re gone.
Now let’s consider the advantages of permanent life insurance. This type of
coverage enables one to shelter money to grow tax free, to borrow from cash
reserves in times of need, and when structured properly it can be a fairly
simple means to creating wealth especially through intergenerational
transfers. What about the estate protection it offers, or income replacement
for a grieving spouse, or funding a buy-sell agreement for a business? How
about fostering a legacy to a charity or paying final expenses? Permanent
life insurance can do all of that!
So whether or not someone believes insurance is in fact an asset, it’s
difficult not to see at least some tangible and lasting value in owning it.
And like so many other investments it usually pays dividends to own coverage
at a younger age because it tends to get more expensive and more difficult
to purchase as time goes by. Over the years, there have been a number of
occasions where I’ve been contacted by a person wanting to learn more only
to find out that due to a past illness or the current cost, moving forward
and applying for coverage was not an option. So to avoid this, I encourage
you to be proactive and to find out what, if any, life insurance is
necessary in order to improve the risk management portion of your financial
plan. And as always, it is important determine the best solution for you and
your family, so always get a second opinion.
Jim Coleman is a Financial Advisor with Raymond James Ltd.
403.266.0513 jim.coleman@raymondjames.ca
*The views of the author do not necessarily reflect those of Raymond
James. This article is for information only. Raymond James Ltd. is a member
of CIPF. Securities-related products and services are offered through
Raymond James Ltd., member CIPF. Financial planning and insurance products
and services are offered through Raymond James Financial Planning Ltd.,
which is not a member CIPF.
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