Protecting Your Family With Life Insurance: A Guide For Manitobans

Family of a mother, father, and two kids smiling outside
July 5, 2022

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Family life insurance is a means to protect your family in the tragic event that you, your spouse, or one of your family members pass. It gives your family the protection they need so that you can rest easy knowing everyone is taken care of financially if the unthinkable ever were to happen. 

In this post, we’ll look at how life insurance can help protect your loved ones, who can be covered with a life insurance policy, and the different policies that exist. We’ll also answer some commonly asked questions to ensure you have all the information you need to get everyone covered.

Prefer to skip the reading and jump right to talking with one of our Insurance Advisors to find the life insurance policy that is best for you? Contact us today!

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How Can Life Insurance Protect Your Family?

Life insurance coverage is your way of showing your family that you’ve got them covered– even if you’re no longer there. It allows them to take the time they need to grieve your death without worrying about how they will meet their financial obligations. 

Insurance is a way for your family to replace your income. It allows you to leave a legacy to your family or children so that you can help them pay for education or a down payment on a home.

As sad as it can be to think about, it’s important to consider what you want for your family when you are no longer there.

What Is Life Insurance?

Life insurance is a contract in which the insurer pays a premium that guarantees that their beneficiaries– usually their family– receive a certain amount of money upon their passing. This amount will depend on the insurer’s policy, their age, and potentially how they passed.  

In other words, it’s guaranteed financial protection in case something horrible were to happen.

Who Can Be Covered With Your Life Insurance Policy?

When you buy a life insurance policy for yourself, it only provides coverage if anything happens to you. However, a life insurance policy can be purchased to protect all members of your family!

Getting Life Insurance For Your Partner/Spouse

It’s important that in the situation your partner passes, you have a way to replace their income. When picking a policy and coverage amount, make sure all your debt is covered and money is left to pay for any final expenses required.

Getting Life Insurance For Your Children

Purchasing life insurance for your children is one of the best things you can do. Depending on the type of policy you get for them, it can ensure that they will have a policy for the rest of their lives, plus they’ll have time to accumulate a death benefit. Getting them insurance young will also allow them to access the cash value of their plan. They’ll be able to use this for any reason they need (down payment, student loans, etc.).

The best part of buying life insurance for them now? The premiums are a lot less! Plus it guarantees insurability for them if they ever decide to buy more insurance in the future.

We hope the unthinkable never happens to our children, but just in case it does, it’s important to have the coverage that will allow you to pay for their funeral and take the time away from work you need without suffering from a negative financial impact.

Related: Living Benefits & Life Insurance for Children and Babies in Manitoba

Getting Life Insurance For Your Parents

Covering your parents is sometimes a shared commitment among siblings to ensure there will be money for final expenses and the financial burden doesn’t fall on the family. The earlier you buy insurance, the better!

Related: Covering Your Parents With Health Insurance in Manitoba

What Insurance Should A Family Have?

As you begin shopping around for a life insurance policy, there are numerous things for you to consider such as which family members you want coverage for, how much coverage you’re looking to get, and what monthly premiums you can afford. Before you begin to dive too far into these topics, it’s important you consider whether you’re looking to purchase a term or a permanent policy.

Option 1: Term Life Insurance

Term life insurance offers coverage for a specific term or period of time. The terms can range from a few years to a hundred years. It provides an affordable option for people who want protection but don’t have a large budget.

Option 2: Permanent Life Insurance

On the other hand, permanent life insurance includes coverage for a person’s whole life. Think of this type of plan as an investment account that can be withdrawn from if something were to happen. This is a great option for those who have hit the max contributions on their tax-free savings accounts and looking for somewhere to hold/grow wealth.

How To Get Insurance For Your Family

If you purchase insurance for one of your children (juvenile), the process will look different from buying for an adult, spouse, or parents. 

To purchase insurance for another family member, you will need all of their medical information (any current and past medical history, medications they may have taken or are currently on), lifestyle information, net worth, income, social insurance number, and banking information.

This process starts with talking to an Insurance Advisor about your particular situation and getting a quote today. Remember, the healthier and younger the person is when you purchase this insurance, the more affordable and easier it will be to get! 

Family Life Insurance FAQs

Every family’s situation will vary significantly. The right amount of coverage for a family will depend on the family’s debts, their income, their future goals (rental properties, cabins, etc.), final wishes, how many children they have and what they want for them in the event they are no longer there.

 

It’s hard to determine what your individual needs will be based on what someone else has. The best thing you can do is contact a life insurance advisor to determine what life insurance policy will best protect you and your loved ones. 

 

Related: What Questions To Ask When Buying Life Insurance

The person who is going to be insured will need to be present, as they will have to answer questions about their health, lifestyle, personal finances, etc.– if they are an adult. A parent or guardian can answer the questions for a juvenile policy. 

 

The person who pays for the policy will be considered the policy owner.

Get Your Family Protected Today!

Life insurance is the best way you can show your family you have them financially protected. As much as we hope we are around forever to take care of them, the reality is that unfortunate things happen, and it’s important to plan for these situations to make sure everyone is covered. 

The best way to find the coverage most suited to your family is to Contact our Insurance Advisors. We’ll help you find a policy that makes sense for you and your budget. We crunch the numbers, and you decide if you want to move forward.