Five Reasons to Get Life Insurance While Your Young

If you're a in your 20s life insurance is likely the last thing on your mind along with savings, mortgages, and dependants. Life to you is still an unencumbered adventure.

Spoiler alert, this will not always be the case. You may not currently have debt, no one to support and a life essentially free of encumbrances. It might seem okay going without life insurance, for now. But things change fast and as they say, life happens whether you’re paying attention or not. Perhaps you may need to rethink what happens financially in the unhappy event of your demise. Below are five reasons to consider buying life insurance.

If you have school debt:

Today nearly two million Canadians have student loans totaling $20-Billon. The Canadian Federation of Students says the average debt for university graduates is almost $27,000. While some students rely on just the OSAP most are being partial funded by their parents who have sacrificed putting money into their retirement in order to do so. Over 50% of students have some sort of debt which should be covered by a life insurance to ensure no additional financial burden is put onto the parents, should the unthinkable happen.

If you own a home:

Home ownership is very important to the vast majority of Canadians. More than two-thirds of married couples are homeowners and among those who are renters, a great many would like to own property. Young adults are no different from the general population in this respect. With the cost of borrowing so low the increase in house poor Canadians is on the rise. A recent report from CBC indicates that these families would not be able to withstand a life crisis event, making life insurance a must have.

If you have risky hobbies:

Most young people think that they are invincible and that nothing can touch them. I am sure that each of us can think back on one or two stories of when we were young and shake our heads, wondering what you were thinking. According to the Public Health Agency of Canada, unintentional injury is the leading cause of death for Canadians under 30. This is more of a concern if you engage in risky sports, hobbies, or work in a high risk jobs. Life insurance makes sense in this case.

If you have children:

It is our responsibility to take care of our children until they are old enough to take care of themselves. If you live with a partner or have a child with a partner with or without marriage, life insurance will protect their interests in case something happens to you. The majority of parents are under the age of 30 despite the recent increase in the average age of mothers as tracked by Statistics Canada.

If you have hereditary health risks:

Although most young people don't have to worry about poor health, you should know that you can be turned down for life insurance once you receive a formal diagnosis and/or develop symptoms. Locking in life insurance now while you are younger will ensure that you receive better rate and allow you to keep coverage even if a hereditary condition crops up.

There are numerous reasons to get life insurance and these are just a few. To learn more about the whos, whys and coverage amount required visit: http://www.protectingwhatmattersmost.com/#!Life-Insurance-–Questions-and-Answers-you-need-to-know/czn1/1. 

By Edgar Schuchardt    May 28, 2015 from Protecting What Matters Most

Preventing the death of a small business

Recently I had a Telecom client pass away, too soon in my opinion as he was still in his prime. This is the second such incident in a year that I have experienced and to be frank it is quite unsettling. I guess that this is one of those inevitable things that happen with age. As I get older I find myself hearing about those close to me come down with illness or pass away more frequently. Despite this recent event’s impact on my own life, I am sure it is having a more profound and exponential effect on the family of the deceased. To make matters worse, I know that my clients business is now undergoing some big changes.

When someone close to you dies it is a difficult thing to come to grips with. Our emotions have a way of high jacking our ability to think clearly and react as we should under normal conditions. I am sure that each of us has a memory of this exact thing happening to them and simply being numbed by the news, for me that was my Grandmother. And in actual fact it took me several years later to fully deal with her death. I can only image that on top of dealing with my grief, having to also deal with the running or survival of a small business.

The disposition of a small business is a difficult task on its own, and it would be made even harder without a succession plan in place. Small businesses are usually service orientated and their clients are used to the quick response and reaction times that come along with that service. Any change in the level of service could have a huge impact on both the client and provider.

From the client’s perspective, being a small business themselves interruptions in service to their own clients has an immediate impact on the bottom line which may force them to seek out an alternative partner. On the provider’s side of things, now you have someone trying to pick up the pieces, service the known clientèle and re-establishing business ties with the community through a new relationship with the replacement manager/owner.

These complications can lead to the failure of a business during this critical transition period. The following three steps should minimize the impact on your clients and ensure the survival of your business and legacy.

1.   Have a succession plan in place:

If you want your company to survive and thrive after you have gone then a succession plan is a critical component to retaining clients during the transition period as well as maintaining service levels.

2.    Have a provision for the business in your will:

Letting your family know your wishes is very important so that there are no legal issues or delays as a result of the transfer of ownership. This process will ensure the value of the business remains intact. It would also be helpful to communicate with both your clients and immediate family your succession plan so that all parties will have clear expectations if the unthinkable happens.

3.   Have a Buy/Sell agreement in place:

Life insurance is a great way to ensure that money is available for the purchasing of a business should one of the partners pass away. The idea is that each partner would pay for the others life insurance and receive a benefit equal to the value of the business which can be then exchange for full ownership of the business. The advantage is that the benefit is almost immediate and does not go through probate and can be given to the surviving family quicker.

Small businesses can be complex and as such need structure to run smoothly and efficiently, the moment it doesn’t there is a concern for its service level and by extension survival. Implementing a plan of succession with the help of a transition team including, a tax consultant, lawyer and insurance professional will ensure that both your family and business are taken care of.

For more information about business solutions visit http://www.protectingwhatmattersmost.com/#!business-solutions/c11l7

Written by Edgar Schuchardt – Life Insurance Advocate & Agent