How Can a Life Insurance Broker Help?

Posted on November 7, 2013 and updated July 3, 2014 in Brokers, Insurance Types, Life Insurance Canada News, Term Insurance 3 min read
Insurance broker
A broker can help you protect your
financial future through insurance.

According to Service Canada, there are 16,900 new insurance brokers and agents working in Canada, as of data collected between 2008 and 2010. Overall, the Insurance Brokers Association of Canada represents over 30,000 brokers across Canada

Life insurance brokers can help protect you and your family’s financial future in many ways. The following is a list of five.

1. Life insurance can be used to pay off debts, such as a mortgage, credit card or line of credit — The average debt load for Canadians is $27,131 and the maximum line of credit you can usually take out is $50,000.

2. Replace lost income — Your family depends on your income. If you were to pass away, life insurance can offset your income and make sure your family continues to maintain their standard of living. There are a ton of life insurance choices, like term and permanent insurance, and many other sub-categories within those two main types of policies. A good broker can help you sift through the clutter of explanations and clauses to make sure you get the right coverage for your family.

3. Protect your income while you’re alive — A life insurance broker can offer you a disability or critical illness policy that either pays you a monthly income to replace yours if you are disabled or a lump-sum tax-free benefit to help cover the costs associated with having a critical illness. A good broker can explain the ins and outs of a disability insurance policy, such as whether you should buy injury-only only coverage or injury and illness protection instead. A knowledgeable broker can also explain the appropriate benefit amount, elimination period, and benefit period while also touching on any policy exclusions.

4. Allow your family to inherit your estate tax-free — You work hard to obtain your assets, such as RSPs, RRIFs, or perhaps a family cottage. However, these assets can trigger a very significant tax bill for your family. Life insurance is a great way to provide tax refunds to your beneficiary to help offset those taxes.

5. Protection if you require in-home care due to an injury or illness — Life insurance brokers can provide long-term care coverage, which allows you to receive a daily, weekly, or monthly tax-free benefit. In the event that you require assistance with two of the six functions of daily living, including bathing, dressing, eating, maintaining continence, toileting, and transferring, long-term care policies can help. A long-term care policy elimination periods is shortest 30 days and benefit periods that last a lifetime.

For more details on how life insurance broker can help, please contact us at 1-866-899-4849, or visit our Term Life Insurance Quote Page.

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Brittany S. Sheppard
Brittany S. Sheppard

One thing for sure not all insurance agents are the same; some just manage a few insurance agencies. This means the examination over the business sector will be a great deal more restricted than an organization like Lifebroker, which manages numerous organizations.

LSM Insurance
LSM Insurance

Thanks I think you mean to say is most brokers just work with a few insurance carriers and this limits their options for the consumer. There is some truth to this. Thanks, Brittany.