Life insurance 101: what you should know
Having the right life insurance can help protect the financial future of your loved ones. It’s one of those things many know is important, but often put off until it’s too late. It’s understandable, given the perceived complexities of the subject; however, it doesn’t have to be that way. Below we break down when people should start to think about applying, and how to go about doing it.
What is it?
At its core, life insurance helps protect your loved ones financially in case you should unexpectedly pass away. Ensuring their quality of life won’t be drastically affected.
Term Life Insurance
This is a type of policy with a set premium covering an individual for a set number of years. Generally, the younger a person is, the lower the cost. A health exam may be required depending on the amount of coverage and a person’s lifestyle. The plans will automatically renew at a locked-in price without the need to re-apply again.
Key Life Stages
If you’re unsure about when to get life insurance, here are three reasons that now might be the right time.
Getting married
Deciding to share your life with someone means it’s time to prep for the wedding and look at new living arrangements. You’re also now responsible for the well being of a spouse and vice versa.
Buying a home
It’s the most significant purchase the majority of people make in their lifetime, and one very often made with a partner. The last thing you would want to do, should you no longer be there to contribute, is leave him or her with the burden of shouldering mortgage payments alone.
Having a child
There’s nothing quite as exciting as bringing new life into this world. It is, however, a huge responsibility, as dependent children will rely on you for everything, particularly in the early years.
Beneficiary
One of the steps during a life insurance application is naming someone to receive the proceeds from the policy. These are tax-free. When the insured passes away, the beneficiary will be contacted to arrange payment details. One individual or several can be named as beneficiaries — for example, the total amount could be split in varying percentages between children and grandchildren.
How to apply
A BCAA Term Life insurance policy can provide coverage between $50,000 and $1 million, offering protection in case you should unexpectedly pass away. One of our expert advisors would be happy to discuss your Term Life Insurance options, call us at 1-888-268-2222 or visit bcaa.com/life. You can also book an appointment with a BCAA Life Insurance Advisor.