Why Do I Need Life Insurance
People are motivated to purchase life insurance for different reasons. Whether your'e a single young adult, just starting a family, a business owner, or established in life. There are good reasons why you should invest in life insurance. We've listed just a few below. What category do you fit into?
Buy life Insurance to Protect Your family
This is the number one reason that people purchase life insurance. It provides your family financial protection. Proper planning and life insurance will give your family an income to maintain their lifestyle. Life insurance can help preserve and protect your lifestyle upon the death of a family member.
Life Insurance with Armour can cover:
- Funeral & Final Expenses: Including probate and legal fees.
- Mortgage or Rent: Make sure there are funds in place to pay the mortgage.
- Education Costs: Tuition, rent and other costs.
- Survivors' Income: Income is required to maintain your families lifestyle.
Buy Life Insurance To Protect Your Business
- Funding for Buy and Sell Agreements - Life insurance can be used to guarantee surviving shareholders that they will have sufficient funds to purchase the deceased's shares. It provides a guarantee to the deceased's heirs that they will be able to obtain full value for the deceased's business interest.
- Creation of Equitable Distributions for Farm/Business Families - Life insurance can be used as a source of funds to ensure a viable farm operation is passed on to the next generation. While providing sufficient cash resources to the surviving spouse. In addition, providing an equitable distribution of estate assets to non-farming business.
- Funding for Estate Planning - Life insurance can be a logical source of funds to provide cash at death to meet estate obligations. (taxes on capital gains, taxes on recapture of depreciation, taxes on RRSP's, and RRIF's). In a case where there is no spouse beneficiary as well as legal fees, probate, and executors fees.
- Key Person Protection - Business owners cannot guarantee the continued health of their key employees. Through Key Person insurance you can prevent an unexpected death from financially harming or destroying the business that you helped to build.
- Collateral Insurance - The net cost of pure insurance owned by an individual or corporation to secure a loan can, within certain parameters, be deducted as a business expense.