How The Right Personal Insurance Plays A BIG Role In Financial Planning

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By Aman Ahuja

When planning for your future, it’s very important to include ways to save a lot of money over time. Getting the right insurance can protect you and your loved ones from having to pay major expenses when you least expect them and to save that money instead.

The Importance of Income Protection Insurance

Financial blows can be prevented with the right insurance coverage. 

Being in an accident – either at work or elsewhere, or diagnosed with a life-threatening disease or illness makes you miss work. Missing work for months due to an injury or illness can all drain your bank account very quickly and in some cases, sending you into bankruptcy.

While you recover from an accident or illness, instead of taking money from your savings or your take-home pay, an arrangement from the right income protection plan can pay the monthly bills, pay for the extended health services or let you hire a permanent caretaker. 

The Importance of Life Insurance

Buying a good life insurance plan is one of the most important aspects of financial planning. It’s highly important to get life insurance when you are young. This will let you build savings while you are strong and healthy and your relative risk is low. 

The same goes for getting life insurance in your 30s, 40s, and 50s. Even though you expect to live life to the fullest for many decades, getting insurance now will save you a lot of money over waiting until your senior years.

Life insurance offers a number of major advantages that save you tens to hundreds of thousands over time:

  1. If you were to pass away, your income would be replaced for your family. This would ensure they live full lives with all the opportunities and extras that might be unavailable without the right life insurance plan.

  2. Life insurance can also be an excellent way to save over time. It’s like a savings plan that consistently builds over the years giving you a great retirement income.
  3. When life insurance is bought under a corporation to protect the key person, the plan may help you reduce your tax liability so you pay less tax, thus saving you a lot of money over time.
  4. Can fund your dream business or buying a franchise opportunity that will make your first million.

All this can save you vast amounts of money over your lifetime. Life insurance doesn’t just pay your survivors if you pass away, it can finance your dreams too.

How to Save Big on Life Insurance 

Consult a Good Broker 

The best way to save on Life Insurance is to locate an experienced broker with good knowledge of the vast number of available coverage possibilities. They can sit down with you, look closely at your financial life and analyze what you need now or may require in the future. Then, they put together a plan that includes everything from your financial needs analysis.

Typically, a knowledgeable broker suggests a lot of ideas and benefits you may not have thought of or know about. Most people feel their visit with a broker is time well-spent.

Ask your friends to refer you to someone they took services from!

Don’t Waste Time

One thing many people do is drive around town talking with different insurance agencies or call as many brokers as they can find online. Don’t waste time shopping across brokers. The insurance industry is very competitive and highly regulated. It’s better to go with a good honest broker and listen to all the options they offer you. You will get the best deal with a policy that does what it’s supposed to.

Declare All Health Issues

Talk about any health issues upfront. If you have a history of problems, let your broker know about that. Take the medical exam to get your health correctly documented. This helps you save money and ensures your policy is exactly what you need. Try quitting smoking which is one of the factors in ensuring you live a long, healthy life. Ask your broker about possible quit-smoking incentives.

 Pay Annually

You can some more money over time by making one insurance payment annually. It’s better to save up your single annual payment than make monthly or quarterly payments that require you to pay a bit more.

More Ideas for Saving

Other ways that can save you money on Life Insurance:

  • most companies will let you lower your death benefit in exchange for lower premiums.
  • Some permanent life insurance pays dividends that can be applied to paying the premiums.
  • A broker can shop around for Life Insurance coverage from several suppliers and offer you the most affordable with the best benefits. They can also explain smart ways to save money now and in the future. After proper financial needs analysis, you’d be able to receive a wide range of coverage options specifically tailored to your needs, and with very competitive benefits & price.

Aman Ahuja is a Financial Security Advisor at einsured.ca

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