Buying life insurance is an important decision that will affect your entire life. Before signing up, do your due diligence and ask yourself these questions:

  1. What do you need life insurance for?

Some common reasons include:

  • Income replacement: If your family relies on your earnings, life insurance can pay a lump sum or steady income to your spouse and dependents should you pass on.
  • Child care and education: This includes daycare, tuition, and post-secondary school fees.
  • Repayment of debts: The most common debt is your mortgage. Ensure your family can pay off your home even when you’re not around.
  • Funeral expenses and estate fees: Funerals cost thousands of dollars and estate costs (such as probate and executor fees) can add thousands more. Life insurance can provide your dependents with the cash they need to settle these expenses without going into debt.
  1. How much coverage do you need?

To calculate this amount, consider:

  • Your existing debts and possible future debts
  • Funeral expenses and taxes that will be owing on your death
  • The day to day amount your family needs
  • Child care costs. If you have children, keep in mind that the average cost to raise a child to 18 is around $250,000. This is approximately $1,000 per month over 19 years.
  • Future education costs for your children. If you want to send your children off to university/college, you’ll have to budget for that as well. Tuition can cost tens of thousands a year.
  1. What kind of coverage do you want? Term or permanent insurance?

There are two main types of life insurance: term and permanent.

Term insurance is the simpler of the two – it provides protection for a specified number of years. Price tends to be lower than other options and it provides a flexible solution, now and for the future.

Permanent insurance provides protection for your lifetime and is divided into two main types: universal life and whole life.

Universal Life: It’s a combination of life insurance and investment. A portion of your premiums go into a savings account, giving your insurance plan a cash value which you can borrow off of or withdraw prior to your death. 

Whole Life: A whole life insurance policy has an insurance component and an investment component. A portion of your premiums go into an investment account managed by the insurance company.

At Juniper, we are specialists in Term insurance. It is a great choice for young families due to its low
price, straight forward nature and increased flexibility.

We hope this short guide on life insurance helps. If you’re ever confused about insurance policies, don’t be afraid to ask a Juniper Life Insurance rep. Remember, Juniper is
life insurance. Done differently.

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