*Please note that this is a sponsored post in partnership with PolicyMe, all thoughts and opinions are our own.
It’s no secret that adulting ain’t easy, and once you become a parent, there’s truly no hiding from your (seemingly endless) responsibilities. Having term life insurance is one of those crucial parts of adulthood that shouldn’t be avoided, especially if you have kids.
Trust me, I get it. With multiple schedules and responsibilities to stay on top of, navigating how to get life insurance coverage can easily drop to the bottom of your to-do list. It can also be daunting and sometimes stressful to discuss coverage that involves worst-case scenarios that no one enjoys thinking about. We purchased life insurance when we bought our first home over eight years ago, but, to be honest, I’m not sure if we would have it now if we weren’t (somewhat) forced into it when we made our purchase, because of how important it is to be covered once you’re a homeowner. Since I know all too well just how crazy life can be, I love that PolicyMe is dedicated to making it easier for Canadians to get term life insurance in a quick and affordable way. If you’re wondering what term coverage is, and why you need it, keep reading!
What is Term Life Insurance Anyway?
Life insurance is recommended for those who have people to protect financially. If you’re a mom, like me, who has a partner, kids, aging parents, or other dependents who need financial support, life insurance is essential to help your family stay afloat in case something unfortunate happens.
Term life insurance, in a nutshell, gives your beneficiaries (financial dependents) financial coverage for a set period of time, should something happen to you. This could be as long as 10 to 30 years, depending on your need for it. You pay a premium every month or every year for the duration of the term, in exchange for your loved one’s financial security. In case of your death, your family (or whoever are listed as your beneficiaries) can file a claim, and they can receive a tax-free lump sum.
Why Is It Important For Parents And Families to Have?
“Most parents should have life insurance to protect the financial future of their family. But, we need to educate more parents about the best way to protect their family,” Andrew Ostro, PolicyMe CEO and Co-Founder, said.
Think of term life insurance as a temporary safety net for your family, especially if your children are still young and financially dependent. Having term life insurance lets them go on with their lives without having financial troubles and worries. Specifically, here are some aspects where a term life insurance can benefit parents and families:
It Can Pay for Your Kids’ Expenses Until
They’re Financially Independent
A child is the most important person to a parent. Having life insurance guarantees that you can still provide for your children’s needs even when you’re not around. Should anything happen to you (again, *knock on wood*), you’re not leaving them in a financially vulnerable position. Knowing that children’s education and daily expenses are covered — at least until they can support themselves — is a massive peace of mind..
It Can Support Your Partner to Keep The Family Afloat
and Save for Retirement
A loss of income doesn’t mean a decrease in expenses. Instead, it usually means that the surviving parent or guardian has to shoulder the financial burden alone That can spell trouble, especially if the person who passed was the main income-earner of the family.
Whether your partner is working or a stay-at-home parent, life insurance is a way to cushion the financial loss in a worst-case scenario. This can help them keep the family afloat and maintain the lifestyle you currently enjoy, without having to break the bank or rely on retirement savings.
It Can Pay for Outstanding Debts
No parent should burden their children with debt. If you have a mortgage, credit card debt, student loans, car loans, or any other withstanding debts, term life insurance will ensure your children won’t have to bear the burden.
Getting term life insurance is the best kind of protection for these kinds of situations. This way, your family can still make payments for your existing debt without having to worry about where they’ll get the money from.
You won’t leave your family with costly funeral expenses. It’s scary to imagine, but we need to prepare for the worst-case scenario. We don’t want to leave our loved ones worrying about how they can afford to pay the bills, especially during an already-difficult time. This varies from company to company, and it’s best to ask them about it.
But Life Insurance is So Expensive…
While it’s important for families and parents to have life insurance, 50 percent of parents living in Canada don’t have one because they think it’s too expensive. This is because 49 percent of Canadians were sold ’permanent’ or ‘whole life insurance’. Permanent life insurance costs seven to eight times more than term life insurance! Mind you, the average Canadian family, especially younger ones, only needs term coverage. You should only ever consider permanent coverage if you’re very wealthy or if you’re older than 55 (maybe not even then). Insurance brokers usually push the whole life coverage because they receive five to ten times the commission for it. Additionally, t’s more expensive because, unlike whole life includes administrative fees, mortality charges, hidden fees, and other charges.
“Too often we see the same mistakes happening over and over again due to poor financial advice,” Andrew noted. “Many Canadians seem to believe they need permanent coverage, but the reality is that permanent life insurance is a very specialized product that only meets the needs of a very small percentage of the population […] It’s time that we see this for what it is: bad advice that’s costing Canadians millions,” he added.
Seeing this issue in the insurance industry, co-founders Andrew Ostro, Laura McKay, and Jeff McKay set out to build PolicyMe to fix this broken industry.
What Sets PolicyMe Apart?
When applying for life insurance, we’re often misled by advisors who say permanent life insurance is a great investment alternative. In addition to taking a long time to get approved, this is just flat out bad advice.
But it’s advice you won’t get with PolicyMe, where nobody is encouraged via sales incentives to sell you a costly policy you don’t need...
PolicyMe also has the most competitive rates in Canada. If you look at price comparisons, you’ll see that most of PolicyMe’s premium rates are, on average, 10 to 20 percent lower than other insurance companies.
No Middle Man
How is PolicyMe so much more affordable? Because they don’t have a middle man! Other insurance companies spend roughly 40 percent of a policy’s premium on unnecessary distribution costs and underwriting steps. In fact, guaranteed rates of return for most policies are only often 1 to 2 percent instead of the 4 to 6 percent advisors would “assure” you. With PolicyMe, you’re assured that you’re spending only on what’s necessary, and the savings are passed back to the customers.
Applicants with Pre-Existing Conditions are Eligible
Even those with pre-existing conditions are encouraged to apply. In fact, 90 percent have already been approved, depending on the severity of their condition.
Co-founder and CTO Jeff McKay has worked to streamline the process online. This means that submitting an application and getting approved will only take a matter of minutes instead of weeks! You’ll get a quote in less than five minutes, complete an application form in 15 minutes, and receive a decision almost immediately! And if you’re required to take additional underwriting steps, PolicyMe will cover the expenses.