Life insurance needs are typically divided into two segments: short term needs and long term needs. An example of a short term need is coverage to protect any debt you’re currently carrying, like a mortgage for example. People often insure themselves for the value of their mortgage so in the event of their death, their loved ones are not burdened with the responsibility of paying off the mortgage. Another example of a short term need is money for your partner. Whether it be a romantic relationship or a business one, the death of either partners can have a significant impact on the survivor’s ability to maintain their lifestyle or to maintain the business. Having money assigned through a life insurance policy provides a much needed parachute during what is usually one of the most challenging moments in someone’s life.
A long term insurance need can be a legacy gift you’d like to provide to an organization that is dear to you.
There isn’t a quick answer to how much life insurance someone requires or what type of life insurance product is appropriate. Whether it’s for long term or short term needs, your insurance needs are established after we’ve undergone a detailed assessment of your personal and financial situation.
Daniel Enayatzadeh is a Financial Security Advisor specializing in investment and insurance planning. He can be reached at 514-996-9400 or at email@example.com