Life insurance is a critical part of your family’s security, but with so many different options available, it’s hard to know where to start.
Fortunately, Mortgage Guard from The Co-operators seeks to simplify the process by covering your life, your family and your home with one comprehensive policy.
“People don't want to talk about serious illness or death,” says Solvi Stokholm, owner of Stokholm Insurance in New Westminster, a Co-operators Agent since 2009, “but it’s necessary if you intend to protect your family after you’re gone. You want to know that the bills will be taken care of and that your children will get a good education, no matter what happens. The right kind of life insurance will do that for you.”
When it comes to life insurance, there are two types of policies, Stokholm explains.
“You can buy term insurance, which expires and needs to be renewed,” she says. “We refer to it as ‘renting’ insurance. It’s good for new families.”
While less expensive at the start, each time you renew the policy, the rate goes up.
The alternative is “permanent” insurance. It’s a better option for larger Vancouver families with mortgages, says Stokholm, as there is no expiry date, no need to renew and it stays in place as long as you live.
Either way, however, you’ll want to consider life insurance, critical illness insurance and disability insurance, as each of the three provides unique and important coverage.
“When looking at life, critical illness and disability insurance, Mortgage Guard from The Co-operators often makes the most sense,” says Stokholm. “Mortgage Guard puts you in total control of your policy.”
With Mortgage Guard critical illness, for example, you get a lump sum, tax free, to cover significant and unexpected costs that can seriously disrupt your life.
With a disability option, you get ongoing coverage that pays you monthly to take care of your mortgage and living expenses.
The Co-operators also provides customers with their Best Doctors service, providing access to more than 50,000 specialists.
And there is also what Stokholm refers to as “Instant” insurance, a relatively inexpensive form of coverage that carries a maximum $25,000 payout to cover final expenses, such as funeral costs.
“The benefit of instant insurance is that you get it right when you need it at your fingertips, without having to wait,” says Stokholm. “You really don’t know how you’ll react if the provider in your family dies. You may be able to cope; you may not. You don’t want to have to think about money in those situations.”
Stokholm advises people to start buying life insurance early, because the sooner you start, the less it will cost.