When is the Right Time to Purchase Life Insurance?

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Protect you and your family for good with a life insurance poilicy that suits you. Contact Jay Asher Ontario Insurance Hub today!

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When is the Right Time to Purchase Life Insurance?

  1. 1. When is the Right Time to Purchase Life Insurance?
  2. 2. The Purpose of Insurance • When most people think about life insurance, they understand that it has the purpose of providing security when a death occurs. However, the timing and purposes behind purchasing such insurance sometimes have other important implications. • Aside from basic protection, modern tax laws make insurance an important part of estate planning for many individuals. Policies are set up to allow for the deferral of taxes and to provide for other planning purposes.
  3. 3. Term Insurance • Whole life is a more expensive form of insurance that provides more than simple protection. As premiums are paid, a cash value accumulates and earns dividends for the policy holder. Many people use this form of insurance for estate planning and transfer of assets to other individuals. This means the timing of purchasing is directly related to key financial issues and decisions involving one’s longer- term financial objectives.
  4. 4. Whole Life • Businesses also use insurance as a planning device for their executives and key employees. The purchase of this insurance at employment or when promotions occur helps to provide the company a source of funds to replace an executive in the event of a death. This insurance is also considered an important employment benefit in many circumstances, with payments to be made to both the company and the employee’s family should unfortunate circumstances occur.
  5. 5. Whole Life • Businesses also use insurance as a planning device for their executives and key employees. The purchase of this insurance at employment or when promotions occur helps to provide the company a source of funds to replace an executive in the event of a death. This insurance is also considered an important employment benefit in many circumstances, with payments to be made to both the company and the employee’s family should unfortunate circumstances occur.
  6. 6. Timing the Purchase of Insurance • As the above circumstances indicate, there are a number of different reasons and times for the purchase of life insurance. It is important to understand the issues behind the planning and the timing of the purchases. These decisions affect the costs and long-term benefits of the insurance that is purchased. • It is possible to get very affordable protection by using the options of term insurance, and this is often all the protection that is needed for a family.
  7. 7. Timing the Purchase of Insurance • At the same time, it is possible to achieve much more complex benefits at a greater cost with whole life options. At different points in one’s life, different insurance choices are appropriate to fulfill the goals of a specific financial situation. • Working with a qualified insurance agent can be beneficial in determining just the type and amount of insurance that is needed to fulfill specific needs at different times in your financial life. There are variations and combinations of these policies designed for specific applications.
  8. 8. Conclusion • As the above circumstances indicate, there are a number of different reasons and times for the purchase of term or whole life policies for insurance purposes.
  9. 9. More Information • For more information on purchasing life insurance visit http://www.ontarioinsurancehub.ca/ • If you live in the Durham region of Ontario and are looking to purchase life insurance contact Jay Asher Ontario Insurance Hub

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