Like everything in life, your insurance needs will not always remain the same over time. That is why your discussion with your insurance advisor and your Ottawa Certified Financial Planner about your insurance needs often depends on three things. The first is your stage of life, your current needs, and your future priorities.
However, everyone has two primary life insurance needs irrespective of their life stage. The first relates to income protection, which is often the priority for young and career-oriented people. This type of insurance ensures your loved ones are adequately protected from current risks to their financial situation today. In addition, it helps to maintain their standard of living in the event of any unplanned circumstances.
The second insurance need relates to asset protection with increasing age. In this case, your actual needs are not the priority. Instead, you prioritize your desire, which could be anything. An example of ‘desire,’ in this case, is wealth-building or estate planning. Interestingly, you can meet both needs with just one extensive insurance plan.
How Can You Find the Best Insurance?
Get a combination of a term plan and a permanent insurance plan that grows as you age and move from one stage of your life to another. In other words, a combined type of plan is designed to meet your current and future needs as follows;
– Guarantees income protection for the moment and asset building for the future.
– Offers short-term protection for any comprehensive but temporary need.
– Keep rates constant for long-term protection in your younger and healthier years.
– Offers adequate protection for any future assets that may become a tax liability.
– Ensures flexible equity inside the plan that comes in handy during emergencies.
Our needs will never remain the same throughout our years on earth. But you can always drop your temporary insurance coverage when you become more stable financially and switch to a plan with permanent death benefit with continuous growth over time.
Picking the right insurance plan is not an easy job. It requires dedication and adequate guidance. The options are so many, and they all seem like the “right” choice. So, what do you do? First, you must realize the fact that there is no perfect plan. That said, you can consider your options until you find a plan that offers more than just a death benefit. The ideal plan should handle your needs at the moment and help you build assets for your needs in the coming years.
Your future is in your hands, and the only way to make it bright is to cover all your bases. Contact an experienced Ottawa CFP for expert advice and guidance when in doubt. Remember, insurance decisions are crucial and must not be left to chance.
