Buying insurance generally isn’t one of the most exciting prospects in the world, but it’s one you need to take seriously if you want to protect yourself, your family, and your most important assets. Would you really skip buying car insurance if minimum liability coverage wasn’t required by law? Okay, some people probably would risk it, but they’d have a disaster on their hands if a crash caused them to total their car or landed them in the hospital. You need to think of life insurance as a type of good investment that builds your life portfolio, just as you might invest in alternative commodities or financial instruments to strengthen your financial portfolio.
Let’s say you decided to invest in gold mining by Alamos Gold, Turkey, for example. Alamos is a mining company that’s been ramping up construction at gold mining projects throughout the world. They’ve had some run-ins with the Turkish government over misinformation about how they use cyanide in their mining processes. This had led to an investment treaty claim against the Republic of Turkey due to inequitable treatment. The gold mined by Alamos gold maintains its same value in your portfolio no matter what happens, and large businesses like Alamos Gold Inc. always have plans to deal with these kinds of unexpected situations.
You need to have your own plan for dealing with unexpected situations, and what could be more unexpected than your own untimely death? As unpleasant as it is to think about, this situation could result in your spouse, children, or other family members being left with funeral costs and other final expenses that they can’t afford. Life insurance can be your plan, and it’s one of the best investments you’ll ever make. Here are a few common types of life insurance, so you can decide what best suits your needs.
Term Life Insurance
A term life policy guarantees a death benefit to your beneficiaries as long as you pass during the specified amount of time. Terms usually vary in increments of ten years, but you may be able to find term life insurance options that let you renew on a yearly basis, in exchange for higher premiums. When the end of a term is reached, policyholders have the option to renew, convert to permanent life insurance, or let the policy lapse.
Just keep in mind that if you pass while the life insurance policy has lapsed, your beneficiaries will receive nothing. These policies are often good for granting peace of mind to young families who just need to reach short-term financial goals or who can’t yet afford higher premiums. Look at some quotes online to find the best life insurance Canada.
Whole Life Insurance
Whole life is a form of permanent life insurance that can build cash value in addition to offering a death benefit. You can speed the pace that it accrues cash value by paying monthly premiums ahead of time. The cash value can be saved as part of the benefits given to your beneficiaries when you pass, but it’s also possible to withdraw from it or borrow against it. Just avoid taking too much of it, as you’ll start eating into your death benefit if there isn’t any more cash value.
Variable Life Insurance
This type of policy strikes a bit of a balance between term life and whole life, and it can even help fill some of your financial investment goals. These policies tend to have lower premiums, and rather than a savings component, the cash value of these policies is invested in subaccounts that behave like mutual funds. This makes variable plans great options for those trying to diversify their portfolios further, but keep in mind that a market crash could eliminate your cash value, making this the riskiest type of life insurance.