winnipeg life insurance

Buy Life Insurance in Winnipeg: Advisor-Guided Life Insurance Planning

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Buying Life Insurance in Winnipeg

If you want to financially protect your family and dependents against the financial risks of premature death, you should consider purchasing life insurance. It will replace lost income, protect your loved ones’ lifestyle, and pay off debts like mortgage obligations, personal loans, or any other consumer debts that may put your loved ones in financial strife in case of a breadwinner’s untimely passing. Life insurance can also cover final expenses such as internment, and funeral costs which can cost between $19000 to $25000 in Manitoba.

Buying life insurance will prevent your loved ones from having to bear this financial burden in addition to the emotional one, and it will give you peace of mind knowing that they are taken care of financially should something happen to you.

We work with Canada’s major life insurance companies and we are local Winnipeg financial security advisors helping clients like you effectively plan and manage their financial risks as well as those of the people they care for in case of serious life events such as premature death.

When it comes to buying life insurance in Winnipeg, there are a few things you should keep in mind. For one, not everyone who puts through an application gets approved that’s why it’s best to apply for coverage while you’re healthy and do not have yet any preexisting medical conditions as you may get declined coverage if you already have preexisting health conditions, not to mention that life insurance rates also go up as you age due to the fact that people have a higher risk of dying as they age.

If you have any preexisting medical conditions, it’s best to apply for life insurance with a no-medical insurance company that issues, simplified-issue policies such as Industrial Alliance and Canada Protection Plan as these companies may still approve your application albeit at a higher rate since they’re taking more risks by ensuring hard-to-insure clients.

When applying for life insurance, you will be asked lifestyle questions by the insurance company such as your smoking habits as well as your alcohol consumption as these habits are major risk factors that could lead to premature death.

If you’re looking to apply for a life insurance coverage, we can help guide you in planning your life insurance coverage. We work with all major life insurance companies and can help you implement the right coverage for your current needs and one that supports your future financial goals. Click here to book your initial consultation!

There are many life insurance companies in Canada, and implementing one with a major carrier that’s covered by Assuris is important as Assuris is a non-profit organization that protects Canadian policyholders in the event that their life insurance company becomes insolvent. The list of member companies can be found on their website.

Types of Life Insurance Available in Canada

life insurance umbrella protection

The two main types of life insurance are term life insurance and permanent life insurance. Term life insurance offers protection for a set period of time, usually between 10 to 30 years, and pays out a death benefit if the insured person dies within that set period. Permanent life insurance, on the other hand, covers you for your entire life and builds up cash value over time that you can borrow against or use to pay premiums.

Term life insurance is more affordable as compared to permanent life insurance, however, it does not build up cash value over time. If you’re looking for an affordable coverage that offers protection for a set period of time, term life insurance may be the right choice for you. On the other hand, if you’re looking for coverage that will cover you for your entire life and one that builds up cash value over time, or even build wealth through your policy, permanent life insurance may be the right choice for you.

In most cases, our Winnipeg-based clients have both permanent and non-permanent financial obligations, a combination of permanent and term life coverages covers both obligations at an affordable monthly contribution while at the same time allowing them to build equity in their policies through cash value accumulation.

2 Types of Cash-Value Permanent Life Insurance

There are two types of permanent life insurance that allow you to accumulate cash surrender values: whole life insurance and universal life insurance.

Whole Life Insurance

Whole life insurance is the original cash-value permanent life insurance product. It offers level premiums, meaning your rates will never increase, as well as guaranteed death benefits and cash values. The cash value grows at a fixed rate, which is declared by the insurer in advance and does not vary with the stock market or other indexes.

While whole life insurance offers many benefits, it may not be the best choice for everyone as it is one of the more expensive types of cash-value permanent life insurance.

Universal Life Insurance

Universal life insurance is a type of cash-value permanent life insurance that offers flexibility in premiums and death benefits. It also has the potential to grow cash value at a faster rate than whole life insurance as it is not restricted to a fixed growth rate. The cash value in a universal life policy can increase or decrease depending on the performance of the underlying investment options, which means there is some market risk involved.

Universal life insurance may be a good choice for someone who is looking for cash-value permanent life insurance and wants to participate in stock and bonds portfolio growth.

life insurance policy types

Term 100 Life Insurance

Term 100 life insurance, on the other hand, is a type of permanent life insurance that covers you for your entire life. It is sometimes called “level term” or “straight life” insurance. The death benefit and premiums are guaranteed not to change over the life of the policy, no matter how long you live, as long as premiums are paid on time.

If you’re looking to implement permanent life insurance but are worried that you may not be able to maintain the higher monthly contributions that cash value policies require, term 100 life insurance may be an option, especially if you’re only looking to secure your loved ones from the immediate costs of death such as funeral costs.

While Term 100 does not have a cash value component like whole life or universal life, it can be a good choice for someone who is looking for permanent life insurance but does not want to pay the higher premiums of cash-value permanent life insurance.

How Much Life Insurance Do You Need?

couple posting for a photo with their 2 daughers

The amount of life insurance you need depends on your individual circumstances and needs. There are a number of factors to consider when determining how much life insurance you need, such as:

-Your current financial situation

-Your dependents

-Your income

-Your assets

-Your liabilities

-Your estate planning goals

An easy way to determine how much life insurance you need is to use a Life Insurance Needs Calculator. This calculator will help you determine how much life insurance you need to financially protect your loved ones in the event of your death.

If you have a young family, you need to implement a life insurance policy that’s able to replace your income or at least part of it, in case you pass-away prematurely, this is because your loved ones will still have ongoing expenses such as a mortgage, food and clothing costs, education costs, etc.

In most cases, Canadian families who are reliant on two income sources find it hard to adjust and survive when they find themselves in a situation where one income disappears.

This is why it’s important to have a life insurance policy that can replace at least a portion of your lost income, so your loved ones are able to maintain their current standard of living in the event of your death.

Another factor to consider when determining how much life insurance you need is your debts and liabilities. You’ll want to make sure that your life insurance policy is enough to cover any outstanding debts and liabilities you have, such as a mortgage, car loans, credit card debt, etc.

Another factor that’s often overlooked when determining how much life insurance you need is estate planning. If you have a large estate, you may want to consider implementing a life insurance policy to help cover any taxes and fees that may be associated with your estate.

Estate planning can be a complex process, so it’s important to consult with a financial advisor to ensure that you have the appropriate amount of life insurance to cover your needs.

No matter what your circumstances are, it’s important to have enough life insurance to financially protect your loved ones in the event of your death.

The best way to determine how much life insurance you need is to speak with a financial advisor. A financial advisor can help you assess your individual needs and circumstances and determine how much life insurance you need to protect your loved ones.

If you’re not sure where to start, you can have an initial consultation with us and we’ll guide you throughout the process.

When Should You Purchase Life Insurance?

The best time to purchase life insurance is when you’re young and healthy. This is because life insurance premiums are based on your age and health, so the younger and healthier you are, the lower your premiums will be.

If you wait to purchase life insurance until you’re older or have health problems, your premiums will be higher, and there’s a higher chance that you could be declined coverage due to the higher risks of dying.

couple playing with their two children

How Much Does Life Insurance Cost?

Life insurance rates are based on a number of factors, including your age, health, lifestyle, and the type and amount of life insurance you’re looking to purchase.

For example, a healthy 30-year-old man who doesn’t smoke and is looking to purchase a 20-year term life insurance policy for $500,000 will pay a monthly premium of about $30.

On the other hand, a 60-year-old woman who smokes and is looking to purchase a 10-year term life insurance policy for $250,000 will pay a monthly premium of about $224.

As you can see, life insurance premiums can vary significantly based on your individual circumstances. However, the younger and healthier you are, the least expensive your monthly contributions are.

This is why it’s important to implement your life insurance coverage as soon as possible, not only can you have a lower cost of insurance, but you can also use life insurance to build wealth as you age. Click here to book a consultation on how you can use life insurance to build generational wealth.

Factors That Affect Your Life Insurance Premiums

Deciding on the Policy Type

As mentioned above, the life insurance policy type will depend on your individual situation and needs.

Non-permanent obligations such as your income, mortgage, and other debts, and your children’s post-secondary education are expected to go away at some point. When your children are all grown up, your mortgage is paid off and you have planned well for retirement, you no longer have a need for active income, hence a life insurance coverage that protects your loved ones from income loss is no longer necessary at some point, which can be covered by term life insurance.

Some of our financial obligations, on the other hand, are considered permanent because they don’t go away as long as we live. An example of this is estate planning, which is the process of organizing your finances and property in preparation for your death.

Estate planning can be a complex process, but one of the most important aspects of it is ensuring that your loved ones are taken care of against potential taxes at death, especially if you’re leaving assets or businesses behind. This is where permanent life insurance comes in, as it aims to protect your loved ones from financial obligations that don’t go away.

For many older Winnipeg life insureds, their permanent obligation is their own final expenses. Planning for this means that your loved ones don’t have to worry about shelling out your costs of death from their pockets (or lines of credit).

How to Apply for Life Insurance in Winnipeg

advisor guided life insurance planning

While you can apply for life insurance online insurance apps, talking with a financial advisor helps you not only plan your coverage better but helps you understand what your options are and how your policy works.

A good life insurance policy is one that is tailored to your unique circumstances.

For example, if you have young children, you’ll want to make sure your life insurance policy is large enough to cover your income so your income continues on even if you’re no longer around.

A financial advisor can help you better understand your loved ones’ financial needs by doing a life insurance financial needs analysis that’s specific to your needs. We can also answer your questions and provide you with the necessary information to help you make a well-informed decision so you avoid wasting money on life insurance premiums or finding yourself without coverage at old age.

As your Winnipeg financial advisor, we can help you not only implement a well-planned life insurance policy but also help you build wealth over time through practical investment and retirement planning strategies.

To learn more about how we can help you, click here to schedule a free consultation today

We meet clients remotely through Zoom and the application is done all online but with real-human assistance.

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