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Why the Pandemic is the Right Time to Get Life Insurance

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As the pandemic’s death toll reached 23,211 Canadians as of April 7, 2021, more and more people are looking into life insurance. A recent study conducted by online insurance brokerage Policy Advisor reveals that 63% of Canadians think that owning life insurance is of the utmost importance these days, due to the ongoing health crisis. Furthermore, 44% have purchased or plan to purchase more life insurance coverage this year. If you are not convinced that now is a good time to get life insurance, examining the benefits might just change your mind.

The benefits of getting life insurance now.

The main reason why people get life insurance is to provide security for their family members. If an insurance policyholder dies, his or her surviving loved ones are entitled to a certain amount of money that can help them cover expenses. Life insurance policies are not subject to income tax, so your beneficiaries would not have to report the policy payments as taxable income.

In the grander scheme of things, getting life insurance today can also help you support the very companies that are assisting the country to navigate the pandemic. An article by Bloomberg claims Canadian insurers paid out a combined $585 Billion to the families of those who succumbed to the deadly virus. After paying out the aforementioned amount, fortunately, Canada’s top life insurers have been able to come out unscathed, effectively showing how they will continue to be reliable in the future.

It also helps that the government response to the Coronavirus pandemic has been quite comprehensive, as laid out by FXCM. Aside from providing commercial rent relief and financing for large employers, the Bank of Canada has also made adjustments to ensure that strains in short-term funding are alleviated and coordinated with other central banks to ensure liquidity. The Office of the Superintendent of Financial Institutions (OSFI), too, is offering regulatory flexibility to insurers. On their official website, OSFI shared its willingness to adjust its guidance and temporary measures in accordance with the impacts of the pandemic to insurers.

  • Tips for buying life insurance.  Life insurance policies are not created equal, which is why you need to know the right tips that can help you find the best one for you.
  • Determine how much coverage you need. To determine how much coverage you need, you have to examine your current and future needs. The best kinds of life insurance policies are the ones that can pay off your major debt and, at the same time, support your surviving partner in paying the bills, send your kids to school, and cover any other long-term needs.
  • Know your options. The only way you can pick out the perfect policy for you is by knowing your options and familiarizing yourself with the different types available to you. Here at Bauld Insurance, there’s life insurance that can protect not just your family but also your home. You can also find a customizable one that can take into consideration disabilities and critical illnesses.
  • Go for a policy you can afford. Aside from the type of policy, price is another thing you have to consider as well. Shop around for the best rate and make sure to get quotes from several companies before you decide.
  • Choose your beneficiaries. As for your beneficiary or beneficiaries, they can be a person, charity, business, or even your church. If any proceeds of your life insurance are meant to benefit a minor, then you have to remember that they must be held in a trust.

Life is precious, and protecting it with the right life insurance can sometimes feel pretty daunting. So for more information and to speak with our Bauld Insurance – Managing Advisor Life Insurance, Christina Wyatt, visit our Life Insurance page and request a quote today!

Written by Amelia June, exclusively for Bauld Insurance