Pattie Lovett-Reid: Why everyone needs to explore the option of insurance
I’m not going say everyone needs life insurance, but I will say everyone needs to explore the option of having insurance in place.
A general rule is you need life insurance if you have dependents – and I’m not only talking about children. It could be anyone who is financially dependent on you such as a spouse, sibling or even an aging parent.
Some will consider insurance if they have a young family, or maybe unexpected medical expenses down the road including long-term care. It is a fact, insurance will never cover the loss of someone you loved and cared about, but it may help you get through a difficult situation much easier financially.
People can be hesitant to explore insurance as it can be expensive and at times it comes down to the probability factor you think something will happen to someone else and yet something could happen to you.
Insurance is really the only product that will protect you from the unknown. It will help your family maintain their standard of living. Even if you are insured, something to consider is that not all policies will last forever. Plus, the younger you are when you apply the better, as rates start to escalate after age 60 and some providers won’t offer policies after age 75.
When it comes to disability insurance, it isn’t available after the retirement age of 65. Insurance is complex and should be reviewed annually. There are so many variables in life that could have change as well as new product offerings.
Bottom line - insurance coverage isn’t for you, it's for your family.
Jane Blaufus, of The Blaufus Group, and an author and speaker for the insurance industry, has the last word: "Life insurance is there when you need it not if you need it. I have never in all of my years in the business heard of one widow or widower, who, when presented with a life insurance cheque, said 'no thanks, you keep it.'"
CTV's Chief Financial Commentator Pattie Lovett-Reid offers a financial tip of the day during the month of February for Your Money Month.