Although people often purchase their first life insurance policy after the birth of their first child, Ezemenari says you don't need to have kids for life insurance to be worthwhile. Other financial obligations, including co-signed student loans or mortgages, for example, are often reason enough. If you were to pass away with unpaid debts, consider who would be responsible for paying the remainder of what you owe: your spouse or partner, or even your aging parents? How would they cope?
Life insurance can also help if you want to leave a legacy, Ezemenari says. Making a charitable organization the beneficiary of your policy, for example, is one way you can continue to make an impact after you're gone.
Of course, if you do have children, life insurance is an easy way to help protect their financial wellbeing when you pass away and are no longer able to take care of them.
Ezemenari says the cost is one of the most common misconceptions people have when it comes to life insurance. While life insurance premiums can vary depending on your age, sex and the plan selected, for many people, the monthly fee can be affordable. Moreover, the premium will remain the same throughout each term in your insurance policy — often 10 or 20 years. "Of course, the younger you are, the lower your premiums will be," Ezemenari adds.
Ultimately, Ezemenari recommends considering the cost of a monthly insurance premium versus the cost of potentially leaving your family without financial support, should you pass unexpectedly.
Ezemenari says there are several important differences between employer-provided life insurance plans and personal term life insurance.
For one, employer-provided insurance is generally tied directly to your overall compensation, which means the benefit paid out if you pass away may only be one or two times your salary. While Ezemenari says that may be enough to cover basic expenses for a period of time, for many it’s unlikely to allow for much beyond that. Further, she says employer-provided plans are usually not portable, which means that if you change jobs, you may not have an option to take that coverage with you. "With personal life insurance, you are the policy owner and it's not tied to an employer, " she says.
Although the thought of purchasing life insurance may conjure up images of excessive paperwork, an invasive medical exam, and meetings with lawyers, Ezemenari says the process can be simple and straightforward: "A medical exam isn't always required. In fact, with TD Insurance Term Life Plans, eligible applicants could receive instant approval with no medical exam required, depending on their age and coverage amount selected1".
For those with health challenges, it can be difficult for some to get life insurance. With no health questions or medical exam required, TD Guaranteed Acceptance Life Insurance can help provide financial support for your family. The benefit can be used to pay your final expenses, such as funeral costs, after you pass away. If you’re a Canadian resident aged 50 to 75, you will be instantly approved for coverage ranging from $5,000 to $25,000 — regardless of your current health or medical history.
Life insurance can be an important financial safety net for families who understand that life can be unpredictable. As Ezemenari points out, it is there to help cover your family's financial needs if you were to pass away. So, the comfort that a life insurance policy can provide for you and your family may make it worthwhile. If you have any questions about term life insurance or guaranteed acceptance life insurance offered by TD Insurance or would like to get a quote, visit us online at TD Term Life Insurance or TD Guaranteed Acceptance Life Insurance.