There are several reasons why Canadians may need life insurance. The top reasons include:
1. Financial protection for loved ones: Life insurance provides a death benefit that can help replace lost income and cover financial obligations such as mortgage payments, debts, childcare, education expenses, and funeral costs. It ensures that loved ones are taken care of financially in the event of the policyholder's death.
2. Income replacement: Life insurance can serve as a replacement for lost income, ensuring that the surviving spouse or dependents can maintain their standard of living and cover ongoing expenses.
3. Estate planning: Life insurance can be used to pay final taxes and settle debts, ensuring that beneficiaries receive the full value of the estate. It helps protect assets being passed on to the next generation.
4. Business succession planning: For business owners, life insurance can be used to fund business succession plans, enabling a smooth transition of ownership and compensating business partners in the event of the owner's death.
5. Affordable coverage at an early age: Life insurance can be more affordable when purchased at a younger age, and it allows individuals to lock in lower rates for the duration of their policy.
6. Protection against long-term care costs: Some life insurance policies offer options that allow policyholders to use a portion of the death benefit while they are still alive to cover long-term care expenses if needed.
7. Peace of mind: Life insurance provides a sense of security, knowing that loved ones will be financially protected and can maintain their quality of life even after the policyholder's death.