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| Assurance vie, c'est la vie! |
By:
Samantha Leary |
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Why would anyone want life insurance? Isn't that just money that you pay so that someone else gets paid after you die? While you most assuredly won't be around to spend the money your insurance policy produces, there are plenty of reasons to invest against your untimely demise.
Pay off your mortgage.
When you finally kick the bucket, it is possible that you will have a balance due on your mortgage. If your estate is unable to pay the balance of the debt, the bank will be well within their rights to forclose on the home an seize possesion. Your spouse and children don't need to go through a painful move while dealing with the aftermath of your death. Even if your possessions are of enough value to cover the mortgage, your belongings would need to be sold to satisfy the mortgage. All of this could be avoided by a low cost life insurance plan.
Assist your family to avoid costly funeral expenses
The average cost of a funeral in Ontario is about $5,500. This amount estimates only the funeral home service charges and an average cost of a casket. There are many things that can drive the cost up, such as the cost of flowers, urns, cremation services and newspaper obituary fees, among others. The actual cost after this can easily reach between $10,000-15,000. These costs could easily be covered with the proper life insurance coverage plan.
Offset estate taxes
While there are no estate taxes in Canada per se, there is something called a Provincial Probate tax. What this means is that the executor of your will needs to file for probate with the provincial court. This includes a list of all your assets, along with your certified will. This will verify that the executor is the person nominated in your will to be executor.
In addition to filing for probate, the executor must pay a probate tax. The amount of the probate tax is dependent on your total valued assets. Among the provinces, Quebec and Alberta have been known to levy the lowest amount for a probate tax.
In addition, if you hold an U.S. Assets, those will be subject to U.S. Estate tax.
Its inexpensive
With the cost of a mortgage, burial services, college educations and probate taxes, being alive can be quite a large expense. For a 40 year old non smoker, it is not uncommon to qualify for a $200,000 coverage policy for around $20-$30 a month. That's roughly equivalent to a conservatively priced dinner for two. Would you forgo on night out a month to protect your family from disaster?
Always be sure to contact your current insurance company. Maybe all the reasons listed don't apply to you. Decide in advance what the purpose of your life insurance will be. You may only want to cover burial costs and probate taxes, for example. Any plan is better than no plan and all. Remember, Assurance vie, c'est la vie!
Samantha Leary is a Public Relations professional and is always on the run, travelling the world to meet and interact new clients. To save time and money when looking for the best deal on life insurance, she went online to compare quotes offered by multiple insurance providers.
http://www.kanetix.ca/ |
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