regarding life Insurance
and How You Can Avoid Them.
Procrastinating Or Waiting To Obtain Coverage
Accidents and unexpected deaths aren’t planned
and can happen at any time. Delaying coverage leaves
your loved ones and assets vulnerable. Life insurance
premiums increase as you get older, so putting off coverage
means it can be considerably more expensive if you wait.
If your health declines, you may have to pay even more
or find that you are unable to get coverage at all.
To Avoid This Mistake – You’ll
get more value for your life insurance dollar when you’re
younger and in better health. With EasyTerm, you can
lock in a premium that is guaranteed not to increase
for 10 or 20 years.
Purchasing Too Little Coverage.
Deciding how much coverage you need can be difficult
and unfortunately some people discover too late that
the cash benefit they planned on didn’t cover
all of the family’s expenses. Items such as post-secondary
tuition, mortgage, childcare costs, medical expenses,
lifestyle needs and more should be considered.
To Avoid This Mistake – Be realistic
about your current and future expenses. We complete
a full needs analysis to determine how much coverage
is right for you.
Neglecting To Periodically Review Your Needs.
As your life changes, your insurance needs typically
do as well. Did your marital status change? Did your
family grow? Are you starting your own business? Did
your children graduate? The insurance coverage that
was suited to your needs when you first got your policy
might not be the best for your needs anymore.
To Avoid This Mistake – Discuss your
needs with a life insurance advisor. Make sure to review
your policy whenever you experience a significant life
change or milestone.
Relying Solely On Employer Coverage.
Employer-provided life insurance is a wonderful benefit,
but it can be risky to rely on for your only coverage.
In many cases, it simply doesn’t offer enough
protection and is not based on your specific family
and financial situation. And if you leave your job,
chances are you could lose this coverage. If this happens,
and you’ve developed a medical problem, you might
find it difficult, or impossible, to obtain new coverage.
To Avoid This Mistake – It’s a
good idea to consider employer life insurance coverage
a welcome bonus, but not your primary coverage. When
you purchase your own insurance policy, you can tailor
it specifically to your individual needs and situation.
Overlooking Expenses That Should Be Covered.
Many people consider only the obvious expenses –
lost income and paying for final expenses and debts.
To help uncover the ‘hidden expenses’, consider:
- Additional childcare costs
- Caring for an elderly parent
- Your children’s tuition
- Making sure your family can maintain the same standard
- Paying off the mortgage and liabilities
- Does anyone in your family need special medical or
To Avoid This Mistake – To ensure you
aren’t overlooking any needs, it’s wise
to discuss your situation with a life insurance advisor.
During your free consultation, your agent should ask
you questions and provide you with information to help
you determine the amount of coverage needed.
Assuming Smokers Or People With Health Problems Cannot
Smokers and people with health problems should never
assume they can’t get coverage. However, it’s
important to be honest if you use tobacco or have health
problems as it will help the insurance advisor give
you the information you need to get the appropriate
coverage. Delaying coverage until you quit using tobacco
or your health improves is not recommended. Every moment
without coverage means your family is vulnerable to
a lifetime of financial hardship.
To Avoid This Mistake – if you use tobacco
or have health problems, don’t assume you can’t
get life insurance coverage. Don’t put off getting
coverage until you quit smoking. Call an insurance advisor
to learn about the options available. For example, you
can get coverage as a smoker today and apply later for
lower non-smoker premiums provided you have stopped
using any form of tobacco products for at least 12 months.
Insuring Only The Primary Breadwinner.
If someone in the family stays home to take care of
children or an elderly parent, the caregiver’s
death could lead to significant unexpected expenses.
Will your family suddenly be faced with childcare or
adult daycare costs or even assisted living expenses?
These costs can run for years and really add up. How
much will it cost to replace the caregiver services
being provided in your household? The answer might truly
To Avoid This Mistake – In-home caregivers
represent an important financial contribution to the
family – make a list of the current and future
expenses you could be faced with in the event of a caregiver’s
death and discuss these with a life insurance advisor.
Assuming Only Families Need Insurance.
Does anyone in your life such as an aging parent or
a disabled sibling depend on you for financial support
or care? And even a modest funeral can represent a significant
financial burden. Your loved ones could be left feeling
obligated to pay those costs as well as any outstanding
medical or legal bills.
To Avoid This Mistake – Look beyond the
immediate family and assess what sort of financial strain
you might leave for others (for example, a spouse, disabled
sibling, elderly parent) if you die unexpectedly. Term
life insurance is an affordable and reliable way to
protect your loved ones whether you’re single
or have a family.
Buying Creditor Insurance For Your Mortgage
From A Bank
Many banks will offer you life insurance coverage when
you take out a mortgage. But unlike individual term
life insurance, creditor insurance does not provide
for your loved ones’ income needs and the coverage
amount decreases each year as the outstanding amount
of your mortgage decreases but the premium remains the
same. You cannot name your own beneficiary and at most
banks, you cannot get better rates if you’re healthy
or a non-smoker.
To Avoid This Mistake – When you buy
term insurance, it is designed to suit your needs, not
the banks'. Your coverage is fully portable –
it stays in place when you change homes, mortgage lenders
or jobs. A licensed insurance advisor can help you make
the right decision.