Rick Hoogendoorn, CSA
Life Insurance Advisor in Victoria, BC
Retirement & Estate Planning Specialist
Creator of SENIORSVICTORIA.COM
No tool solves the financial problems
created by a death better than life insurance. And there are many, many
financial problems that can be created when somebody passes away.
Life insurance solves the financial problems created
when a parent dies, leaving behind a young family. Life insurance solves the
financial problems created when an older person dies leaving substantial tax
liabilities. And life insurance works very well as a tool to create liquidity,
so that inheritances can be made fair, or business partner heirs can be bought
out. There are many other uses.
There are many different types of life insurance, and
thousands of different "plan names", but life insurance can really be broken
down into two basic categories: permanent life insurance, or temporary (term)
life insurance. Permanent life insurance can be viewed as insurance you own,
while term life insurance can be viewed as coverage you rent.
In my 15 years of experience in the insurance business,
I have often met people who wish they had coverage, but couldn't afford it
because of their advanced age. I have also encountered many people who simply
could not qualify for it because of poor health. Many had rented their insurance
and then let the coverage lapse.
The question to consider, then, is what will happen
financially if you or someone in your family passed away tomorrow? What debts
would you be left with? How would the loss of income affect your family? Would
the death trigger taxes you couldn't afford to pay without selling valuable
assets?
Life insurance is a tool. First you need to know the
problems, then you can reach for the tools.
Rick Hoogendoorn, life insurance advisor
Victoria, British Columbia
Toll free in BC
1 (866) 380-3096