At the top of the list of industries most affected by the virus is the travel industry. Health-imposed shutdowns and travel restrictions have devastated businesses in this sector. Another industry that we cannot ignore is the insurance industry. The spotlight is particularly on life insurance due to the lethal nature of the virus. Everyone is anticipating drastic changes in life insurance due to COVID 19. But, what are these changes? More importantly, how would these changes affect existing policyholders and what does it mean for prospective clients?

Here’s a look at how COVID-19 has affected life insurance business, responses by life insurance companies, and what this could mean for you.

Learning from the Past

A pandemic of the magnitude of COVID-19 has not been witnessed since the early 20th-century outbreak of the Spanish flu. By then, life insurance was not such a popular way for hedging risks. Besides, there was a world war going on.

However, life insurance became more popular after that turbulent mid-20th century period. By the turn of the new century, life insurance was a well-known and accepted concept. In 2001, both non-life and life insurance companies paid out a total of US$40 billion to the survivors of the 9/11 attacks.

A few years later, during the SARS outbreak, an influx of claims triggered structural changes in the insurance industry. Many companies dealing with indemnity insurance introduced exclusions that would today rule out claims due to pandemics such as COVID-19. However, there’s disquiet in this area. We expect to see plenty of litigation, and industry transformations to accommodate customers’ needs.

But what about life insurance? Did history trigger shifts that would adversely affect claimants today? How has the COVID-19 pandemic affected life insurance? More importantly, what does it mean for you?

Impact of COVID-19 on Life Insurers

“SARS reminds us that sudden disease emergence is a permanent part of our world–and should be anticipated in our planning.” Jan Von Overbeck, a Swiss researcher said these words more than 15 years ago.

The only problem is, SARS did not cause a major disruption for life insurers. Canadian companies that have extensive operations in Asia experienced “modest SARS-related claims.” This could also be the case for COVID-19.

We all expect the number of claims to shoot up significantly. But, responses by major life insurers in Canada shows that COVID-19-related claims are not a major concern for insurers. Your life insurance policy is not at risk and the insurers are not worried about payments.

Why aren’t life insurance companies worried about a surge in claims? If we are to go by history, the aftermath of the 9/11 attacks can give us clues. Life insurance paid out a total of US$ 1.2 billion. This was a small figure considering that nearly 3,000 people lost their lives in the financial capital. On the other hand, property insurance paid US$ 4.3 billion, and business interruption insurance paid a whopping US$13.1 billion.

Like Americans, Canadians have insured their businesses and properties more than their lives.

Isn’t it ironic that you could have insurance for your car and other property but none for your life? Reach out to one of our advisors and get help to set up a life insurance cover for you.

Insurers Will Pay COVID-19 Claims But There Are Other Effects

Insurers have come out boldly to assure clients that they will process COVID-19 claims without prejudice. But the insurers are closely monitoring how COVID-19 is affecting the mortality rates. From an actuary perspective, this may affect how products are structured and priced.

If you already have a life insurance coverage, check if it’s still sufficient for your needs. If not, talk to an advisor about getting additional coverage.

COVID-19- related claims will also disrupt operations in processing claims. The movement restrictions and extra work for medical teams due to COVID-19 may cause delays and a few hiccups. Nevertheless, so long as regular policy criteria are met, you can be confident that once cleared, payments will be settled, including where death was due to COVID-19.

Existing life policyholders may not feel considerable disruption. However, it is undeniable that the current pandemic has caused shifts in the life insurance sector. The economic effects of COVID-19 are causing boards of life insurance companies sleepless nights. Here’s how this disruption is a threat.

Economic Impact of COVID 19 on Life Insurance

COVID-19 has had a two-prong economic disruption on life insurance businesses. It has shocked the capital structure and disrupted business models and operations.

Concerning the capital structure, recent plunges by major exchanges, coupled with falling interest rates, and the downgrading of government bonds, has driven life insurance companies to profit and solvency ratio concerns.

Life insurance businesses control nearly 20 trillion dollars of assets. If the current COVID-19-triggered volatility persists, life insurers may have to revise their investment portfolios and potentially reduce earnings. Of course, this will trigger a wide range of cost-cutting measures to save the balance sheets and protect clients’ interests. But it may translate to good tidings for prospective policyholders. Insurers will be more competitive and innovative. Thus benefiting the prospective clients.

Speaking about innovation, the operations and business models of life insurance companies may shift from relying on face-to-face activities to remote systems. This, coupled with a rise in the numbers has created a snarl in claims processing. However, it has ushered a new technology-driven dawn for life insurance businesses. Many companies had these works in the pipelines. But the COVID-19 pandemic has forced an acceleration of the execution.

Life insurance companies which are infamous for being esoteric, manual and policy-led, have to embrace the inevitable – a digital transformation. This makes sense on the business side of things and also for the clients. More agile institutions and emerging “insure-techs” are already making inroads by ousting the traditional products and methods with technology-based processes.

What it Means to Existing and Prospective Life Insurance Clients

Without a doubt, these disruptions will significantly affect service delivery and products. We all expect delays in claims processing for now. Not just due to the surge in numbers, but also due to the contagious nature of COVID-19.

Here is more on how the changes will affect you when buying life insurance.

For starters, there’s likely to be delays in approving applications.

The number of Canadians inquiring about life insurance has risen. However, applicants will experience some delays at first.

We expect the Insurers will be more cautious as they monitor and get a better understanding of COVID-19. Until there’s more information of the health threat caused by the coronavirus, and coping mechanisms such as vaccinations emerge, life insurers are likely to tread carefully before accepting new risks.

That means, frontline workers such as doctors and other workers in transit points like airports may be regarded as a “high risk” category.

Right now, the sooner you reach out to an advisor, the faster your application will be processed.

Insurers will at first be extra-cautious with remote underwriting

There’s likely to be an initial setback in remote underwriting. Disclosure of information such as recent travel, or contact with possibly infected people will affect the risk assessment and premiums significantly.

Since there’s no “human feel,” life insurance companies may be uneasy about remote underwriting. Your honesty is the most important aspect of such an appraisal.

However, this is an inevitable turn for insurers, and pragmatic companies are linking with “more agile partners” to overcome this “fear.”

Minor ailments and frequent travel could affect your life insurance prospects

Whereas previously a slight headache, runny nose, or fever wouldn’t significantly affect the assessment of life insurance application, this has totally changed now. Keep your medical records meticulously and be in touch with an advisor. Also, frequent travel may be considered a higher risk and affect premiums. So keep your travel and contacts records intact.

On the brighter side, consumers should expect considerable digital shifts in life insurance. There’s bound to be an increase in data-driven underwriting, less paperwork, and fewer in-person medical examinations. The reduced face-to-face interactions may initially cause some delays. However, contactless payments, collaboration tools, and algorithm-based underwriting is the future.

COVID-19 has caused shifts in life insurance. But these shifts can benefit policyholders. Reach out to an advisor and strike while the iron is hot.

If you have any question or would like a second option please reach out to attingo.ca or call us at 1-877-302-5425

This information is general in nature, and is intended for informational purposes only. For specific situations you should consult the appropriate legal, accounting or tax advisor.

The post COVID-19 Shifts in Life Insurance and What It Means for You appeared first on Attingo.

We aim to give you the best advice concerning life insurance. Read on and understand how COVID-19 has affected life insurance.

Does Life Insurance Cover Death Due to COVID-19?

This is by far the most asked question by those who already have life insurance.

There’s no need to worry if ramifications from this virus are covered or apply for additional life insurance, unless you need more coverage anyway. Most life insurance policies do not have disease-specific exclusions. This includes pandemic situations like COVID-19.

Life insurance companies, led by Manulife Financial, have also sent clear messages about COVID-19 related claims. They will assess each claim based on the terms of the agreement of the client’s life insurance policy. More importantly, the insurers assert that they will process claims due to COVID-19 deaths just as any other cause of death.

That should settle your nerves, right?

But such a strong assurance by major insurers does not mean that they will process claims blindly. There are situations where the life insurance company can deny a claim; including COVID-19-related.

When Can Life Insurance Companies Deny a Claim?

Ordinarily, a life insurance company might deny a claim (check your policy for your specific situation) if:

• There was a fraud, and misrepresentation or concealment of material facts in the application.
• Death was a result of suicide, within a certain period as stated in the contract.
• Death resulted from an act of war.
• Death was due to involvement in hazardous activities like extreme sports.
• Death was due to smoking-related ailments, yet the applicant had declared to be a non-smoker.
• Death was due to the involvement in illegal activities.

If everything is in order the insurer will process the claim. Death due to the COVID-19 cannot be a reason to deny a claim. But, you must come clean about other issues at the time of application. Otherwise, the insurer would have grounds to contest your claim and possibly deny it.

Does Travel Affect an Existing Life Insurance?

Your present activities, depending on what they are, may affect your life insurance. For instance, it is standard procedure to inform your insurer about recent travel and future plans. That is during the application process and if you are within the contestability period.

Since there’s been a surge of COVID-19 cases in the United States, Canadians should be careful to observe this requirement.

The contestability period is a sensitive phase and generally lasts 2 years. The insurer may review your application during this time if there’s a claim or to ensure the application is straight up. Any discrepancies could lead to a denial of claim, hiked premiums or cancellation of the policy.

What if you were planning to get life insurance, or you were in the process of getting life insurance. Does the COVID-19 pandemic affect your application?

Impact of COVID-19 on On-going and New Life Insurance Applications

Each life insurance provider has a unique way of assessing applications. COVID-19 should not deter you from applying for life insurance. In fact, it’s a wakeup call to those who don’t have life insurance.

Reach out to an advisor and pick out a policy that suits your lifestyle and income.

But you should let the prospective insurer know of possible exposure to infection. For instance, if you traveled to a high-risk zone like China, Italy, Spain or New York in the recent past. Generally, insurers want to manage their risks. They will check if you fit a high-risk profile. According to the CDC, this includes but is not limited to:

• Older individuals
• People who have underlying health issues such as cancer, or a cancer survivor.
• Immunocompromised individuals.

If you are in the high-risk cluster, it does not mean automatic disqualification. You could qualify for life insurance but be prepared to pay a higher premium rate and for certain exemptions.

A trusted advisor can take you through different insurers’ products and help you compare against your interests.

If you are yet to apply but intend to travel. Speak to your advisor to establish when the best time to apply would be. With so many travel restrictions across the world, it’s unlikely that your travel plans will sail through.

On the other hand, if you are waiting for approval on your life insurance application, alert the insurer about future travel plans. You should also let the insurer know if you recently traveled to a high-risk region.

What are the Signs of COVID-19 Infection and What Should You Do?

Many people wouldn’t know if they have COVID-19 infection. The symptoms are similar to the flu. Furthermore, some people may be carriers of the coronavirus but not show symptoms. Some people may develop symptoms later (pre-symptomatic). Other people may never develop symptoms (asymptomatic).

The most important indicator of infection is recent exposure. Again, honesty is the best policy.

The Department of Health Services advises anyone who suspects to have COVID-19 to take preventative measures. These include self-isolation for at least 14 days and to call the nearest public health authority.

Here’s the Bottom Line

If you have an existing life insurance policy that’s not within the contestability period, the coronavirus pandemic shouldn’t affect you. But you should inform the insurer about recent travel and future travel plans.

On the other hand, if your life insurance is still within the contestability period, or you are in the application process, honesty is the best policy. Due to the coronavirus pandemic, disclosing your travel history and plans is a crucial part of the risk assessment. Reach out to a professional for help on comparing different life insurance policies against your priorities.

If you have any question or would like a second option please reach out to attingo.ca or call us at 1-877-302-5425

This information provided in this article is general in nature, and is intended for informational purposes only. For specific situations you should consult the appropriate medical, legal, accounting or tax advisor.

The post Life Insurance and Coronavirus: What Every Canadian Ought to Know appeared first on Attingo.

Long term care is a threat to your retirement nest egg. It costs about $100 – $175 a day, or $35,000 -$65,000 each year, to meet the long term care needs of one senior. It wouldn’t take long before such a bill depletes your retirement nest egg.

If you are counting on government programs, the situation is worse. Presently, the government only meets a small fraction, 18 percent, of long term care costs. On the other hand, family members pay up to 75 percent. Worse still, experts predict a crisis in funding the ballooning public long term care bill.

So, how can you protect your retirement nest egg from illness?

One solution is using private insurance or long term care insurance.

Assessing Your Need

Possibly you are pondering “Do I need an additional insurance plan?” That’s fine and normal. But, if you can afford the premiums, we would rather you ask yourself these questions:

• How much are you saving for your retirement?
• How well can your nest egg take an extra annual hit of $35,000 – $65,000 when you are in your eighties?
• Will you rely on family for support?

How Does It Work?

Long term care insurance kicks in when you are unable to perform two of the six aids to daily living. These are Bathing, Dressing, Transferring, Toileting, Continence, and Feeding.

There are two ways long term care plans work. You can opt for a regular monthly or weekly income from the insurer and use it at your discretion. Alternatively, the insurer can pay your long term care bills. Either way, long term care insurance is generally much cheaper than making out of pocket payments.

The good part is, premiums are usually significantly lower for younger applicants. Also, the payments from the insurer are not subject to taxation. But the best part is, you’ll have peace of mind knowing that your retirement nest egg can be protected from the financial effects of illness and you won’t be a burden to your family.

Reach out to one of our agents and get to learn more about your options for protecting your retirement nest egg.

The post How Do You Protect Your Retirement Nest Egg From Illness? appeared first on Attingo.

Read on and find out how you can get affordable life insurance coverage.

Why Insurers Differentiate

One in five Canadians has had a mental health issue at some point in their lives. However, the Ontario Human Rights Code gives insurers leeway to differentiate prospective clients based on their past medical histories. If you’ve sought counseling for work stress, or to help you through the loss of a loved one, it’s sufficient grounds for differentiation. But section 22 of the Code puts a condition. The basis for differentiation must be reasonable and on bona fide grounds.

How Can You Get Affordable Coverage?

Fortunately, insurers no longer follow outdated interpretations of mental health. They have a modern perspective and products that reflect this.

Don’t just pick the cheapest policy available online. Reach out to one of our experienced advisors who’ll give you the attention you need.

The agent will likely ask you about the diagnosis and the treatment of any mental health issues. Some advisors will want to know more about the episodes. Don’t be embarrassed about your medical history. Instead, be well-armed with the information they need. Insurers use this information to weigh the frequency and severity of the condition.

You must also be open and honest.

If you’ve not had a recent episode, chances are, you’ll get a quote at standard rates. On the other hand, if you’ve had a recent episode, the rates might be slightly higher. But all is not lost. If you remain episode-free, you can reach out to an advisor at a later date and review the policy.

So, you can get life insurance, even with a history of mental health issues. Remember, insurers are different, there’s no one-size-fits-all so shop around.

Get your quote easily here.

The post Been Through Depression, Can I Still Get Life Insurance? appeared first on Attingo.

Here’s why life insurance is important.

A Great Way to Get Started on Your Financial Goals

Having financial goals is vital. If you are not working towards any objective, you are likely to overspend on minor bills and run short of cash when major bills come up. What are your financial targets?

Whatever your goal is, have you ever stopped to think, what if something terrible happens to you? Life insurance gives you peace of mind to formulate and pursue goals. You may be able to better stay on course for your goals.

It’s Way Cheaper Now

How does $150 per year sound*? That’s how much you could pay for life for a term-life cover worth $100,000 if you are thirty or under, a non-smoker and generally in good health. The price could vary depending on your personal situation. But, it usually increases significantly when you get to your 40s and 50s.

As we grow older and dependents come along, life insurance becomes essential. It is almost unavoidable. When you sign up for a term life cover in your 20s or 30s, you lock-in the rate for the ‘contract’ period. Generally, the younger you are the less likely you are to have health issues. This allows insurance companies to offer you a lower premium. As you get older you are more at risk, and therefore the premium increases.

Getting a Quote is Super Easy

Today, it’s super easy for young adults to get life insurance. You won’t go through baroque, form-filling processes. Just reach out to our online advisors, share some personal information and compare different policies. You can chat online, clear up any trouble areas and sign up for a policy in minutes!

*For more information and to obtain an illustration for any life insurance example such as this, contact an advisor.

The post Thirty, Flirty, and Renting. What Do I Need Life Insurance for? appeared first on Attingo.

Attingo helps you experience easy access to a quick personalized insurance quote. Our expert advisors are committed to help you understand, compare and select the right policy from the top Insurers in Canada.

We simplify the process and when you’re ready, we’ll help you apply for your policy on-the-spot and you’ll be protected in minutes.

It’s Easy:

1. Request a personalized Insurance quote online.
2. Receive a call within 15 mins for straight-forward advice.
3. Apply.

We know getting the right information straight-forward is valuable and results in true peace of mind.

Request a Quote today and get started. Attingo. Everything Financial

The post How to finally have peace of mind and get insured without having to do it alone or afraid of making the wrong decisions. appeared first on Attingo.

Are you heading south this coming winter? If you are, you should read on to learn about changes to OHIP’s Out of Country Coverage (OCC) and what you must include in your travel plans.

What’s Changing

As of October 1st. 2019, Ontario residents will no longer have OCC under the Universal Healthcare Plan (OHIP).

Under the current plan, the government reimburses up to $400 per day for high-level care (such as intensive care) and $200 per day for other levels of care.

When the government scraps the OCC, each of the annual 40,000 Ontario travelers will require private insurance if they want coverage. The plan doesn’t affect travel within Canada.

How to Prepare When Traveling

Scraping of the OCC by the government may not have a big impact on your travel plans if you are part of the over 90% of travelers who already purchase private insurance. If you think private travel insurance is a waste of money, think again.

Ever had a mishap while on holiday?

Last year, Mary, a resident of Ontario, went to do some shopping in Buffalo in the U.S. According to CBC news, Mary got into an auto accident. She accrued a whopping $13,000 hospital bill! OCC only reimbursed her for $1400. She had to part with $11,600 in out-of-pocket payments!

Make sure you include travel insurance in your planning checklist!

Benefits of Private Insurance

Private travel insurance is a great option to protect your investments. For starters, it’s an affordable way to safeguard against unforeseen costs due to flight cancellations or delays. It’s also an excellent way to protect against hefty medical expenses should the unthinkable happen.

Private insurers have taken it a notch higher. It doesn’t matter whether you are a millennial or a snowbird. They have excellent plans for Canadians across all ages. You can also get Travel Insurance Online within minutes.

Wondering how much you’ll pay?

Get your quote under no obligation today. You can do it yourself online, or you can talk to an expert at 1-877-302-5425

Don’t be shy! Let us know what you can afford.

The post Attention Ontarians! Don’t Seal Up Your Travel Plans Until You Watch This! appeared first on Attingo.

So, is it convenient to get life insurance at this stage? Absolutely.

Your partner depends on you. And soon your newborn will too, financially, physically, and emotionally. For that, you’ll need to spend more time and money to provide for them. Should you get life insurance at this point or not is answered in 8 easy words…

If someone depends on you, get life insurance.

It isn’t too soon to get life insurance. Actually, at this moment you might be losing the opportunity to get it for the lowest premium, because generally, the younger you are, the lower your premiums as you represent a lower risk for insurers.

In fact, getting life insurance when you’re about to start a family is one of the best decisions you can make if you currently don’t have any financial back-up (and even if you do).

As a parent, knowing your family is protected in case you become disabled or die is one of the cornerstones of good financial planning.

Imagine your family struggling financially without you – at the very peak of expenses when your child needs education, healthcare, clothing, and toys. Would your savings be enough to take care of them at least while they adapt to a new lifestyle? Read on…

Starting A Family… Which Type of Policy Should You Get?

It depends.

If you’re seeking the simplest policy with the most affordable coverage, then term life insurance may be the best value. Young families tend to choose term insurance as they are often looking for a policy with lower premiums to cover a risk over a limited time period.

Usually, families with short-to-medium range concerns go for term insurance thinking their child would be independent by the time their policy expires. Now, as this is term insurance, you might need to renew it in 5, 10, 20, or even 30-years and would have to pay higher premiums at that time.

Perhaps at this point in life, you have a long-term financial burden with mortgage debt. One of the term life insurance’s greatest benefits is that it can be used as mortgage life insurance to help protect your family against any mortgage debt.

Pros:

• Comparatively lower cost
• Coverage for financial obligations, including mortgage debt

Cons:

• No lifelong coverage
• It may be expensive to renew or to increase your coverage
• No cash value (more on that below)

Another popular type of insurance is whole (permanent) life insurance, where premiums can stay the same for the life of the policy, but generally, the premiums are higher than term life policies but are only paid for a limited time.

So for young families, if you can afford the extra premium cost of these policies now it can be beneficial to purchase permanent life insurance when you’re young and the premium is generally lower.

Whole life policies usually offer a cash value accumulation feature, which uses part of your premiums to pay to accumulate as a cash value you can access in the future (tax-deferred) for any financial need, including paying for your policy’s premiums, ironically.

In fact, if your child had a whole life policy, they could withdraw some of this cash value to make a down payment for their first home, pay for their education or to boost their professional careers. Or you as a parent could use the cash value from your policy to help them.

This is the main reason why whole insurance is highly regarded by young parents.

Pros:

• Permanent coverage
• Payments generally don’t rise
• Cash value accumulation– savings on premiums

Cons:

• Initially more expensive than term
• Here’s a small comparison for both types of life insurance:

Whether you go for term or whole life insurance, take note that stay-at-home parents need life insurance too – not just the breadwinners. Childcare is an expensive service, and while having the opportunity to raise your kids is amazing, at some point in your life you might need such services.

Life insurance can help your family repay debts and obligations in case you or your partner are deceased. This can provide your son/daughter with a financial cushion to leap forward.

Sad but true, healthcare absorbs money, and deciding not to purchase life insurance can turn out to be a major regret, not just for you, but for your child when he grows up.

For a few bucks per month, you can permanently protect your family and yourself against any financial issue.

Is it too soon for life insurance, then? Absolutely not… it’s never too soon to protect your loved ones.

For more information on life insurance, here are some tools we’ve gladly made for you…

Get FREE Instant Life Insurance Quote
Schedule a FREE No-Obligation Call

The post Starting a Family… Is It Worth Getting Life Insurance? appeared first on Attingo.

We’ll also cover:

• Who should buy parental insurance and why
• The 1 thing you need to buy Life Insurance for your parents (or Anyone)
• What type of life insurance fits best for your parents
• The Goodman Triangle (don’t miss it if you want to avoid taxes – legally)

Each section is written straight to the point. We’ve included some resources in between to leave every idea crystal clear.

Who Should Buy Parental Life Insurance?

Basically, anyone who wants to protect their lovely parents and him/herself at the same time. It’s a double shield. Beyond giving parents security and confidence, you’re financially protecting yourself against future financial obligations.

Whether you’re seeking life insurance for young parents or for parents over 50 or 60, you need one thing to be approved.

The 1 Thing You Need to Get Life Insurance For Your Parents (Or Anyone)

Insurable interest – Proof that you stand to suffer some kind of financial loss when your parents pass away.

Why is this necessary? Because it prevents people from buying life insurance for others whom they know are expected to pass away soon. Imagine if insurable interest wasn’t needed at all… there would be plenty of billionaires and insurance companies would go bankrupt.

Don’t worry, there’s absolutely no problem with this. Whether you’ll be inheriting your parents’ debt or paying for their burial costs, you can generally prove you’d be financially weakened if they were gone.

However, take note:

It’s hard sometimes to prove insurable interest if you’re an adult buying insurance for your parents, if so, it may be better to help them own their life insurance themselves and list you as the beneficiary.

You can’t apply for life insurance on another person without his or her consent.

If you still want to be the owner of your parent’s policy, then consider carefully the amount of coverage that would be appropriate to yours and your parent’s situation. Too much not be approved and too little won’t help you deal with your financial obligations.

Why Life Insurance For My Parents?

There are plenty of reasons why you might want life insurance for your parents. Here are the top 7…

• Funeral expenses – We all know burial costs can easily extend to 5 figures. Why risking the burden when life insurance can cover it completely?
• Healthcare – Keep protecting your parents from colossal health costs.
• Debt – Protect yourself against any debt you’re possibly inherited.
• Replacement Income – If part of you depends on your parents’ capital, don’t think it twice.
• Taxes – Cover any type of tax you might inherit
• Legacy – A little cushion from your parents to pass their savings, properties, and assets to their beneficiaries.
• Donations – Any donation or good social input you or your parents would like to make… tax-deferred.

How To Buy Life Insurance For Your Parents

Just as for yourself. It requires the same process, which you can find here. However, remember you must have their consent, insurable interest, an amount of coverage established and the type of insurance you’d like to buy.

You could be both the owner and the beneficiary of the policy, no problem with that. In fact, it’s better… but we’ll get to that.

About the medical exam, yes it’s required for most cases. And yes you can get insurance for your parents even if they’re in poor health, just expect to pay a little bit more.

What Type of Policy Fits Best For Them?

The easiest policy to get is the “final expense” which is basically burial insurance, yet it’s quite expensive. Actually, most people end up paying more for the policy than the death benefit they receive, merely due to the risk the elderly present for insurers.

You may be better off with term, life, or whole life policies. Each one has unique characteristics that might satisfy your needs. To know more about them, here’s a complete guide of the different types of life insurance.

The Goodman Triangle

You might be wondering what the heck is this…

Well, let us quickly explain. An insurance policy has three roles:

• The Owner – The person who owns the policy.
• The Insured – Who is being covered by the policy.
• The Beneficiary – Who will receive the death benefit.

When these are 3 different persons, the owner of the policy might have to pay estate taxes for the death benefit.

Let’s say Matthew is the owner of an insurance policy covering his mom, and Matthew’s brother (Mike) is the beneficiary. If Matthew’s mom passes away, Mike would receive the death benefit. But, the owner of the policy (Matthew) would have to pay estate taxes (45-55% of the death benefit).

It can be a lot of money you could save.

Now you’re aware of why parental insurance is a good option and how to prevent the “Goodman Triangle”. Remember you can always come back here and reread all the content we’ve published for you.

If you still have any questions or doubts, contact our support team at hello@attingo.ca or schedule a call here.

The post Can I Get Life Insurance For My Parents? appeared first on Attingo.

First of all, you must understand if anyone depends on you, then you need life insurance. Then, we can move to what type you need, followed by the ideal amount of coverage.

Exactly How Much Coverage Should You Aim For?

We’ll guide you through a couple of basic questions that will whisper you the answer. Your life insurance needs some analysis. Before we start, grab a piece of paper or something to write on; your smartphone would also work well. It’s a quick exercise definitely worth giving a shot.

The first question…

1) How much debt do you have?

We’re talking besides your mortgage here. Whether you’re spending more than you earn or paying for your car on a monthly basis, write it down. Take debt into consideration as it’s the FIRST number you should know in order to pay it off.

2) How much do you spend each month?

Any type of expense, anything that comes out of your pocket, add it all up and write down the final number. (Please don’t try to guess this one… you’d better get the right number to protect your family in the future)

Imagine reaching a false conclusion that ends up not being enough for your family… you wouldn’t want that, would you?

3) How much do you save each month?

How does that piggy bank look like? How much money do you put aside? This question is important as it makes you realize it might be necessary to replace all your income with insurance. If you have a fat piggy bank, then you might need less coverage.

Actually, let’s break the pattern here for a second… pay close attention.

Assuming your family invests $500,000 from your death benefit for an annual interest of 5%. That means they would earn $25,000 dollars more every year. This number should match your annual salary to replace your income.

Golden Rule – You need enough coverage to match your annual income.

So if you earn $25,000 dollars a year, then you might need a $500,000 coverage. Rough estimate.

Alright, back to the questions…

What are your long-term goals? If you’ve prepared yourself for your retirement, well done! Otherwise, you should aim for more coverage.

Finally, how much income the people who depend on you need? Include all types of expenses: education, mortgage, food supply, etc.

Basically, your financial obligations – your assets = life insurance coverage.

Keep in mind our money tends to lose its value over time due to inflation while interest rates increase. Because of this make sure when you request life quotes you go a little bit higher on the scale.

3 Basic Ways to Calculate Your Coverage

1 – Multiply your Income by 10

We don’t urge this method as it’s too broad to work with. It doesn’t include possible future expenses, education or asset growth (the increase in value of your assets over time). But if you’re on a run, then take it for a quick estimate.

2 – Multiply Your Income by 10 + $100,000 per Child

A similar method for those who have kids. Again, it’s a general way to calculate coverage. However, future obligations and assets aren’t taken into account, making it a little bit inaccurate.

3 – The DIME Formula

D – Debt & financial expenses

I – Income

M – Mortgage

E – Education

A more direct approach where deeper areas are evaluated. Simply add these up to get an approximate coverage.

We share these methods with you in case you’re in a hurry or don’t want to go deep into numbers. Either way, the best tip we can give you is that whatever number you get, you aim higher. It will always be better to leave a gap between how much you need and how much coverage you get.

BONUS Tips

Among the types of life insurance in the market, term and whole life are the most popular. If you’re a parent of young kids, here’s our suggestion…

Besides protecting yourself and your family, your kids also need financial help for their future. We suggest whole life insurance for them to build up cash value and provide for them when they need it the most. If you’re interested, click here to learn more. Whole life insurance can be 6 to 10 times more expensive than a term policy, though.

Here’s an example of how whole insurance can greatly help you…

Let’s say, Mike, a 27-year-old adult is searching the Web for life insurance. However, he must calculate how much coverage he needs to provide for his wife Jenny and his infants Marco & Matt.

Both Mike and Jenny have always taken care of their health, exercising regularly and eating properly, so how much should life insurance cost? No more than $400 a year.

But they’re looking to slowly build up cash value for their two kids. If budget isn’t quite a problem, what could they purchase?

Maybe they could buy term life insurance for the entire family. But they wouldn’t be able to build up cash value. That’s why Mike better decides to buy term insurance for Jenny and himself and invest a little bit more in his kids’ future with whole life insurance, which as long as he keeps paying it won’t disappear.

In case money gets tight, they can withdraw funds anytime from the cash value they’ve built up in their kids’ policies. 20 years from now, Marco & Matt would graduate from college and they could use these funds to make a down payment for their first home or to cover any other need they might encounter.

Do you see how whole life insurance works?

Even though you can find plenty of cheap life insurance quotes, sometimes stretching yourself with a bigger investment might be of great help for your family, to the point where not only are you securing a couple of months or years of your salary in case you’re missing, but you’re giving your kids a small leap towards their journey when they most need it without having to die to withdraw these funds.

Now you know how to calculate coverage by yourself and how buying whole life insurance for your kids might help them hugely. Anyways, here are some tools that will help you make a confident decision:

Quote Generator – Request Your FREE Instant Quote

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