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Why Gifting Life Insurance Can Be a Sensible Choice During the Holidays?

/ Life Insurance / Dec 23, 2020

December, the holiday season, is definitely one of the best times of the year, even if it has been the year of the pandemic! This is the month of quality time spent with loved ones, mouth-watering food, and thoughtful gifts.

With the holiday season approaching, have you given some thought to the gift you are going to give to your loved one? You probably would like to opt for something meaningful that comes with value and capable of bringing that ear to ear smile.

A Christmas jumper or a PS4 game may not always cut it. How about thinking outside the wrapped box idea and giving your loved one something that s/he will treasure for most of his/her life.

While life insurance may not be the first thing to come to your mind, it can be an excellent holiday gift especially in 2020, the year of the Coronavirus. Here’s why.

1. Peace of mind

Life insurance provides the peace of mind to the recipient that his/her beneficiaries are financially protected in case the worst happens.

This gift can reduce family stress because it will be a known fact that their future is secured even if the policy holder passes away. For example, a life insurance policy can cover living costs so the beneficiaries can continue with their standards of living even in the absence of the policyholder.

Financial stress can affect a person’s mental and physical health, causing problems like sleep deprivation, headaches, and other problems. A life insurance policy in Mississauga or Toronto can act as the perfect solution to these problems.

2. Life insurance is very affordable

Life insurance doesn’t have to be expensive. In fact, the younger you are, the cheaper it is. If you are in your early 30s and in good health, you may be able to secure yourself a term life plan under $15 a month.

Many people wrongly overestimate the price of life insurance. Significant advancements in medical science has increased our life expectancy, thus, reducing the average price of life insurance, on the whole.

So, secure the financial future of your loved one with a plan, at a price that both of you can feel good about. Talk to a life insurance advisor in Mississauga or Toronto to know about the best and affordable plans for you.

3. Who can gift a life insurance plan?

If you are thinking of gifting a life insurance plan for the holidays, you should know that in Canada you can purchase life insurance for almost anyone, provided the following conditions are met:

Consent

The first thing that is required before gifting a plan to the recipient is his/her permission. The recipient of the gift must provide his/her signature during the life insurance application process.

Insurable Interest Proof

The second thing that you would need to prove before purchasing the policy is the chances of you facing financial hardship or loss in case the recipient passes away. The life insurance company, typically, investigates the relationship between the parties by speaking to the policy holder, beneficiary, and the insured person to confirm that there is indeed a proof of insurable interest.

Here are a few people to consider giving the gift of life insurance:

  • Kids
  • Siblings
  • Spouse
  • Grandkids
  • Parents
  • Yourself (It’s Christmas! You deserve a gift too!)

4. What are the types of life insurance you can gift?

There are many options to consider. We would always advise you to speak to an experienced life insurance advisor before purchasing any plan so you get the best value for your money. The consultation is free with zero obligations.

The plans typically range from:

  • Permanent and Term Life policies

Permanent plans provide coverage for life with the premiums locked in at the rate they were purchased. Term life plans, on the other hand, last for a certain term (10, 20, 25, 30 years). Once the term is over, the individual has to renew the coverage at an increased rate of premium or choose to end the same.

Permanent plans also come with a cash value option allowing you to grow your money. Term life policies are actually cheaper and very affordable if the individual is young in his/her late 20s or 30s.

  • Regular and no-medical policies

Regular life insurance policies can take from 1 to 3 months before they can be issued because of the underwriting process. They require a full medical examination including fluid samples, needles, etc. No medical life insurance policies, on the other hand, do not require medical tests and can be issued in a few days.

Talk to our life insurance advisors to know the best option for you

Our life insurance advisors at trust Life & Investments have over 30 years of experience providing expert insurance and investment advice in Mississauga and Toronto. Talk to us to know about the best and affordable life insurance plans for you – no cost, no obligations!