The loss of a family member is a hard thing to go through. It gets even harder when that person was a parent/provider to other family members. On top of the emotional factor, family members have to deal with the financial consequences of funeral costs, replacing lost income, legal fees, estate fees etc.
We get it – no one likes to think about their own mortality, but when we have others depending on us, it is no longer an emotional discussion – it becomes a financial discussion. If you are a parent supporting their children and/or spouse, or helping your parents or other family members by supporting them financially, you should look into your existing life insurance coverage and do the right thing by planning ahead.
Here are a few questions to ask yourself as you’re going through this exercise:
1. How much personally owned life insurance do i currently have?
2. How much life insurance coverage does my employer group plan provides (dont count on it, treat it as extra).
3. What is my magic number? what amount of coverage is the right amount for me based on my assets and liabilities?
4. What are the immediate financial consequences and long term financial consequences my family members will have to deal with after my death.
5. Do I really know what I currently have in terms of life insurance coverage?
6. Does my spouse know about all my assets, bank accounts?
7. Do I have a will? and if so, has it recently been updated?
As you and your spouse or dependents are going through this exercise, try and write everything down and carefully document the answers as well as let them know where and how to gain access to this important information.
If you’re having trouble doing the math, or looking at the options, it is always recommended to consult a Financial Advisor who can help you with the math as well as come up with solutions from the various companies. It’s always recommended to shop around before making a decision in terms of which Insurance company or policy to go with based on your needs. Ask all the questions, make sure your spouse and dependents understand your coverage and can access it in time of need.
Remember: Insurance planning is an important part of your overall financial planning and taking care of your loved ones.
For more information on how to be prepared please contact Independent Financial Concepts Group today at 1-416-849-1653 or visit www.wecoveryou.ca.