MDRT Blog | Sep 9, 2020

Many people shop around for the best price on gasoline, yet they might not do the same for their insurance. They buy a homeowner’s policy at the same time they buy their house and they keep that policy unchanged until the day they sell their house. If they do that with their homeowner’s policy and the rest of their insurance, they could unknowingly have significant coverage gaps that may be putting them at risk. Insurance needs change over time!

Insurance isn’t a ‘set it and forget it’ …insurance is dynamic. It can change along with your situation.

10 examples of how insurance needs change:

Insurance needs often change alongside life-changing events…these include:

Insurance for life changing events
  1. Graduating from school…your life is ahead of you. Although retirement seems far away, it’s never too early to start saving for retirement. As a qualified advisor, I advise my clients on annuities and other retirement savings vehicles, to maximise their retirement benefits.
  2. Buying a car….if it is a new car, it likely includes collision insurance. As the car ages and loses value, collision protection might not be as important. Getting better and better cars means better insurance.
  3. Getting married….a big step, you will likely be planning a family. Whole life insurance is important. It provides protection and builds cash value.
  4. Buying a home…requires homeowners’ insurance. You will probably have a mortgage. More life insurance is a good idea to protect your mortgage.
  5. Having a child…Another cause for celebration. College is going to cost a fortune. You need to start saving now to prepare for the future.
  6. Buying a vacation home….requires additional insurance coverage, especially if it is in a part of the country subject to extreme weather, such as flooding. Plan the coverage you need.
  7. Illness in extended families….we are all growing older. The thought crosses our mind “this could happen to us”. Makes sense to buy long-term care insurance when you are younger. The best time to buy, is when you don’t need it.
  8. Approaching retirement….you may have accumulated significant cash value in your life insurance policies. Now you need retirement income. Does it make sense to move the cash value into an annuity to provide lifetime income?
  9. Charitable giving….charities close to your heart. You want to make a difference. Should you designate one or more charities as beneficiaries on life insurance policies you currently own?
  10. Estate planning….the government can move the goalposts when it comes to the threshold for paying taxes at the federal level. Can some life insurance policies owned by you be designated to pay estate taxes? This might require establishing a separate trust. You need to get advice for best options!

As a financial advisor at Desjardins I look forward to meeting you and understanding your goals and needs.

As a professional in the field of insurance and investments, my understanding of people's goals and aspirations has created a lasting bond over two decades. The key to their success has been my passion for excellence.

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