In 2013, 37% of Canadian families relied on group life insurance without any supplementary life insurance.[1] Group life insurance is an economical and convenient solution, but many families rely solely upon it and we don’t believe it offers enough to meet all of your family’s needs. Here is why we believe you should supplement your group plan with more protection.
Group coverage is not comprehensive coverage
The most important factor to consider when it comes to life insurance is the amount of protection it offers. The coverage amount through group plans is usually linked to your annual salary. Typically it is one to three times that amount. This is not enough money to help your family maintain its standard of living and the cost of future expenses like university education for your kids. Permanent life insurance allows you to set the amount of coverage you believe your family needs.
Permanent life insurance is true to its name
Group plans offer term life insurance, which is only temporary coverage that expires when you are no longer an employee. If you decide to leave your job and start your own business, you will lose your coverage in an instant. Permanent life insurance can last a lifetime and isn’t linked to an employer, only to you and your estate.
Reasons to get permanent coverage
Permanent life insurance may be used to serve multiple purposes. Every person has their own unique situation, but we believe everyone can benefit from life insurance in some way. For example, it can be used to create an estate for your beneficiaries to receive upon your death. You can use it to pay for your final expenses, like funeral costs or outstanding debts. It can used to preserve your estates value by offsetting your tax liabilities, like capital gains. You can even use a portion of your coverage as a donation to a cause that is dear to your heart.
Have a financial advisor help you find the right coverage
If you are in one of the 37% of households that rely solely on group coverage, you should talk to a financial advisor at The Beacon Group of Assante Financial Management, Ltd. Your financial advisor can conduct a thorough insurance needs analysis and advise you if you have the coverage you need. They can also go over your current group coverage to make sure you have appropriate disability and critical illness coverage.
Greg Snider provides insurance products and services through Lifetime Financial Planning Inc. in the province of Alberta. Wayne Hill provides insurance products and services through Assante Estate and Insurance Services Inc. in the province of Alberta. Cory Gagnon provides insurance products and services through Lifetime Financial Planning Inc. in the province of Alberta, and through Assante Estate and Insurance Services Inc. in the province of British Columbia. Lifetime Financial Planning Inc. is an outside business activity that may offer non-securities-related financial planning services. Any specific investment recommendations provided by Greg, Wayne, or Cory must be done through Assante Financial Management Ltd. (“Assante”), a registered mutual fund dealer. Although Assante is not responsible for any service or product supplied through Lifetime Financial Planning Inc., Assante will monitor for conflicts of interest and investigate any client complaints related to services offered by Lifetime Financial Planning Inc.
[1] LIMRA, Canadian Insurance Ownership Survey, 2013.
