The Financial Literacy Video series is your exclusive gateway to financial empowerment brought to you by Wiegers Financial & Benefits. In this series, we offer invaluable perspectives and tailored approaches to bring your financial goals to life. Whether you’re just beginning or seeking to refine your financial planning, we have the resources for all. Stay tuned as we explore essential financial topics in the coming posts, and let’s work together to unleash your financial potential. Your brighter financial future starts here. In our latest VLOG, Cliff Wiegers, a trusted financial advisor will provide you with information about why life insurance is so critical to your family’s financial security

Why Life Insurance is so Critical to Your Family’s Financial Security

No one likes to think about what will happen to their family if the worst happens.  Life gets very real, though, and the unexpected happens.  A lot.  What would happen to your family if you met your maker?  What would happen if your partner met their maker?  Would your family be able to maintain the same lifestyle they had prior to the death of a family breadwinner?  Could your partner, for example, afford to have your children continue to participate in the sports they enjoy so much?  If you don’t have adequate life insurance in place, it could mean that your family would be forced into a different lifestyle than they are used to.


Prerequisites to a Life Insurance Program

If you’re like most Canadians, you have at least one strong reason to have life insurance.  Before you get it, though, the following four things must be in place:

  1. Responsibility: you have to be responsible to get life insurance
  2. Economic means: you need to be able to afford the insurance premiums
  3. Health: you have to be healthy to qualify for life insurance
  4. Urgency: you have to be of the mindset that you could die today so you need to get life insurance in place as soon as possible

Once your life insurance application is approved and your coverage is put in place, no one can take it away from you (as long as you pay your insurance premiums on time).  Life insurance, if purchased in a sufficient amount, will go far in protecting your family’s financial security.


Types of Life Insurance

There are two main types of life insurance available:

  1. Term Life Insurance
    • This is the most affordable option for most Canadians. It’s the most economical way to purchase the level of insurance you need to ensure your family’s financial security.
    • Every 10 or 20 years (depending on the terms of your contract), your premiums increase.  Premiums remain level until the next scheduled rate increase.
  2. Whole (or Permanent) Life Insurance
    • Most whole life policies feature level premiums throughout the insured person’s life.  The premiums, though, are typically higher than with term life insurance.
    • Whole life insurance has a cash savings component which the policy owner can draw on or borrow from.


When Should You Purchase Life Insurance?

The short answer is that you should purchase life insurance when you are young and healthy.  Most people’s health declines as they age.  The longer you wait to purchase, the greater the eventual cost.  Also, very importantly, if you take a medical exam to prove your good health now, then if any health issues arise in the future, your insurance will be grandfathered at the lower rate.


For most of us, our life insurance needs change as our lives evolve by having children, getting married, getting divorced, taking on a mortgage, beginning retirement, caring for elderly parents, and/or a myriad of other potential life changes.  A professional financial advisor can work with you to ensure your life insurance coverage evolves as your life evolves.  For more information or to get started on an analysis of your life insurance needs, listen to what Cliff has to say below. For more resources on Life Insurance check out our other VLOG’s here.

Clifford A. Wiegers, CFP, TEP, CH.F.C., CLU, B.Comm.

Financial Planner, Manulife Wealth Inc.

Insurance Representative, Wiegers Financial and Insurance Planning Services Ltd.


The opinions expressed are those of the author and may not necessarily reflect those of Manulife Wealth Inc.

Mutual funds are offered through Manulife Wealth Inc. Insurance products and services are offered through Wiegers Financial and Insurance Planning Services Ltd. Banking products and services are offered by referral arrangements through our related company Manulife Bank of Canada. Please confirm with your Advisor which company you are dealing with for each of your products and services.