Define your life insurance needs

coube des besoins en assurance vie

In life insurance, we often wonder if we are well protected.

Because life insurance is an intangible good of consumption, so you can not see or touch. And too often if we have to reduce our expenditures are this type of property that is the first cut. But it is a safety aspect for our family members and should never be neglected in my opinion.

they are different factors to consider in determining our need:

Inflation

As in all financial aspects of our lives inflation is also present in our need protection. If I want a protective order to cover my final expenses, my children’s tuition, protect the standard of living or another, we must always consider that today incurred expenditure will increase in the future by increasing the Cost of life. You can not get insurance thinking die in the months following calculation therefore is necessary to project these expenses by an adequate horizon.

The life cycle

Depending on the age and life journey traveled, insurance needs are not all the same for each of us. There is no absolute rule in insurance by age, gender, status, etc. we must reflect on our present and future situation. Some needs are permanent, such as funeral expenses, the other by cons are temporary as the repayment of a mortgage balance. Therefore a combination of permanent and term insurance products can allow you to protect a fair price according to the curve of your life insurance needs. (See illustration).

The children’s autonomy

When we make the decision to start a family , we do it with the idea to bring him what is best. How many parents that struggle to work in order to pay proper education to their children or simply that they lack nothing . This commitment goes beyond death . If we are the most , who will care for our children , who will pay for studies that we want their data access . When you decide to protect the standard of living of your family , determine the approximate age at which our children can be considered financially independent . Calculate the number of years remaining to make it has autonomy and multiply by the annual costs and do not forget to add inflation. Education, housing costs and groceries all increase each year.

Quality of life

In a family, each adult brings income and is divided into different areas of expenditure. Each of these sectors is to benefit the family or on behalf of the individual. For example, income may be used to the future economy of clothing, personal monthly expenses such as subscriptions and other sports activities or even travel expenses such as the purchase of a second car, insurance, registration and gasoline. All these expenses, its connected to an individual while as a mortgage, groceries, electricity, heating, tuition fees for children’s activities, children’s clothing are all expenses related to the family. Account must be taken of the two types of expense in computing the need for protection of living standards by life insurance. The expenses are the individual disappear, but one related to the family persist. So it is important to determine the income portion is for personal expenses and one that is for the family to end of calculations required. It should of course choose a period in the year in which we want to protect the quality of life. And do not forget inflation.

Retirement

Often in a couple ‘s income is not the same level, then one of the partners save more to prepare a suitable retreat to the couple. In the event that the individual will have the biggest income should die prematurely. That would happen to the retirement of his partner? savings and an important aspect of your personal finances and the still more event of the loss of your spouse.

Finally , the calculation of insurance needs may prove to be more complex and difficult than a simple and fast evaluation or a digit simply launched into the air. Meet with your advisor will help you to clarify your needs. They have tools to fully determine the death benefit amounts required and all you can get around all these determinants.

André Gagnon
Conseiller en sécurité financière
Représentant en épargne collective