Life Insurance Awareness Month

In September, we celebrate Life Insurance Awareness Month. Advisors work together to educate our clients about the importance of Life Insurance and the part it plays in protecting families and their financial stability. While we know that Life Insurance may not always be a top-of-mind priority for many Canadians, its importance is vast and should be recognized as a valuable and versatile tool in protecting our loved ones and our assets.

Many find it uncomfortable to talk about, as the conversation does revolve around what could happen when we pass away. Taking steps to put adequate Life Insurance in place, review our Life Insurance needs, and update our coverages accordingly, can help all of us feel more confident and rest easier, knowing our loved ones and finances will be well taken care of.

In essence, Life Insurance is an agreement between yourself and the Life Insurance company where, when you pass away, they will pay a death benefit. The death benefit is a lump sum of money, received tax free, by a beneficiary, or beneficiaries, of your choosing. There are many options available, and you can decide what cost and type of Life Insurance fits best within your budget. During the worldwide pandemic, we all learned that life is very fragile, not one of us is invincible, which makes a campaign like Life Insurance Awareness Month that much more important.

Like many things in life, some level of maintenance is recommended for your Life Insurance. As we go through life, many things change about our overall financial outlook. That mortgage that has been around for years might one day be gone, children will one day be all grown up and able support themselves financially, and other debts may be paid off and no longer need to be insured. Here at O’Farrell Wealth & Estate Planning we recommend:

• Reviewing your Life Insurance and Financial Plan with your Advisor on an annual basis.

• Completing an insurance needs assessment periodically in order to determine if your overall insurance coverages are on track. You may be under insured, over insured, your coverage needs may not have changed significantly, or you may need to make an adjustment. Your Advisor will help review your situation and make recommendations.

• Review your Beneficiaries and Contingent Beneficiaries annually to make sure your policies are up to date.

• Discussing Whole Life Insurance as an investment with your Advisor. Whole Life Insurance provides consistent returns in a tax efficient manner and is a powerful addition to your Financial Plan.

Life Insurance Awareness Month is a great time to reflect on our overall Life Insurance needs. Take some time to review your coverages and if you have any questions or concerns, contact your Advisor.

Andrew Goetz is a Financial Advisor with Assante Capital Management Ltd. The opinions expressed are those of the author and not necessarily those of Assante Capital Management Ltd. Please contact him at 613.258-1997 or visit ofarrellwealth.com to discuss your particular circumstances prior to acting on the information above. Assante Capital Management Ltd. is a member of the Canadian Investor Protection Fund and the Canadian Investment Regulatory Organization. Insurance products and services are provided through Assante Estate and Insurance Services Inc.