WHY YOU NEED LIFE INSURANCE

What can a life insurance plan do for your loved ones.

In a time of great hardship and emotional trauma, having a policy and a broker you trust can be truly priceless. Life insurance provides a financial payout to your beneficiaries at the time of your death. This can help cover expenses they may not otherwise be able to afford. There are generally two options for the term of your policy, Term and Permanent, your VLG broker will discuss both options with you.

Term Insurance: A receipt of a tax-free lump sum benefit in the event of your death during the selected period of time (term).

Permanent (whole life) Insurance: A receipt of a tax-free lump sum benefit after your death, paid into for the duration of your whole life.

How to calculate the total benefit you’ll need.

Using the DIME method to calculate how much coverage you need.
(D) – Debt, (I) – Income, (M) – Mortgage, (E) – Education

These are the financial obligations you’ll want to make sure are covered to ensure you are keeping your family’s future secure.

Here is a relatively easy formula you can work with to sort out the level of coverage you may want for a Term life insurance policy.

Total your assets (income and liquid)
Subtract your debts (mortgage, creditors, education etc.)
= Recommended life insurance benefit
The average person should plan for approximately 10x their annual income.

More Than Life Insurance

VLG can assist you with many other health related insurances that protect your family’s future.

  • Disability Insurance
  • Critical Illness Insurance
  • Group Benefits

We Find you the right coverage at the right price.
Let our Friendly team of experts work for you.

Call us today 1-888-302-6388
Call us today 1-888-302-6388
Office hours Monday - Friday 8:30am - 4:30pm

Life Insurance Tips

Estate Planning

Estate Planning is the act of preparing for the transfer of a person’s wealth and assets after his or her death. Assets, life insurance, pensions, real estate, cars, personal belongings, and debts are all part of one’s estate.

Critical Illness

Critical illness insurance covers against expenses that may occur at the time of major illnesses such as heart attack, stroke and cancer. Policies can cover as few as 3 medical conditions and up to 24. This coverage is offered in terms of 10 – 20 years, with the option to lock in premiums for the duration of your chosen term.

Can your health affect your rate?

Your health history, current conditions and family conditions can all play a role in determining your eligibility for coverage. The most common health conditions that may affect your life insurance premiums are: high blood pressure, high cholesterol and obesity.

How your premium is calculated?

To give you an idea of just what information you will be asked for when applying for Life insurance, we have gathered a short list of 7 key factors that will be taken into consideration:

  1. Your Age
  2. Gender
  3. Your Health History
  4. Family Health History
  5. Smoking and alcohol consumption
  6. Hobbies, high risk activities, lifestyle habits
  7. Occupation

Terms to know

Term Policy: The ‘term’ is the time you start paying your policy premium until a set end, typically 20 or 25 years. Premiums are paid for the duration of the term, similar to your home or auto insurance, while premiums are paid you are covered. In the event of the unthinkable, your death, your term life insurance policy would pay the full benefit to the designated beneficiaries.

Permanent Policy: The death benefit is a tax-free chunk of cash paid out by the life insurance company in the event that you die. For example, let’s say you buy a whole life insurance policy with $500,000 in coverage. Whole life insurance lasts for your whole life– as long as you keep paying the insurance premiums, of course.

Legacy: Where a portion of their assets are used for purchasing life insurance to pass along the value of those assets to the next generation.

Beneficiary: The person you have legally assigned to receive the proceeds of your policy. This can be changed and updated throughout your life as relationships evolve over time.

For more definitions, please our full Glossary of Insurance Terms.