Although it’s a little awkward, discussing if life insurance is right for you is important. While some see it as a luxury, other families deem it an absolute necessity. We break down the pros and cons of life insurance to help you decide if it’s right for you.
Pro: Peace of Mind
People often purchase life insurance to help those they care about financially when they pass. In this regard, life insurance payouts can, and have, helped many people deal with expenses they might not have even considered.
Mentally, it can also relieve stress since you know that even if something did happen to you, your loved ones would be okay. Parents would know their significant other and children would be able to still live comfortably. Additionally, life insurance payouts can even support young adults financially for college or university. Regardless of how the money is used, a huge weight can be lifted off your shoulders when you sign up for life insurance.
Pro: Potential Tax Deductions
In many cases, when it comes to payroll deductions, life insurance premiums are considered a taxable benefit. However, employers will also need to deduct Canada Pension Plan contributions as well.
If you purchase a life insurance policy that builds up cash over time, there are a few instances where life insurance may be tax-deductible. For instance, you may be eligible if you use your policy’s cash value as collateral for a loan from a bank or other third-party lender. Additionally, if you withdrew some cash value from your policy or you completely cashed out (surrendered) your policy some of your money may be taxable.
Pro: Affordable Coverage
Pro: Affordable CoverageMany people overestimate the cost of life insurance—it’s often highly affordable! The best time to buy it will always be when you’re young, but depending on the policy you choose (and your situation), there are still many options available for affordable coverage as you get older.
Looking for life insurance as a senior or have a pre-existing medical condition? Don’t worry, there may still be inexpensive life insurance options available to you as well.
Accomplish Insurance is always up-to-date on the latest changes to policies and plans. Reach out to get the right life insurance for you.
Con: The Idea of Dealing With Life Insurance Is Tough to Grapple With
No matter how old you are, death is never easy to discuss. It can be difficult to live your life knowing there’s going to be a time when you will no longer be able to see those you care about. This doesn’t mean it’s any less important to bring up the topic of life insurance.
In fact, it’s even more important to think about if you have your own family that’s relying on you for support. It’s a selfless act to put them first, and although it’s tough, talking about life insurance can ensure the people you care about have a happy life.
Con: You’ll Need to Plan Ahead
Although not really a con (really more of a by-product) there is a significant amount of planning involved with life insurance. Because everyone has different needs and are at different points in their life, how much planning you actually need to do will depend on your situation.
With the help of your life insurance agent, you’ll need to anticipate as many factors as possible in the future. These include things like:
- Family size
- Costs of raising your children
- Your home (or future home) upkeep and mortgage
- Inflation costs
Some policies offer a large degree of flexibility which can be especially helpful if there are future elements you’re unsure about.
Ultimately, whether you choose to purchase life insurance is up to you. Understand that getting life insurance is always a selfless choice to help the significant people in your life. If you want to ensure they are financially taken care of, it’s a great option to provide them with additional monetary support and help them move forward in their lives.