Edmonton Real Estate Blog

‘Mom’ has a big meaning for every family. A ‘mom’ can be many things: a spouse, common-law partner, sister, aunt or mother; your family’s primary or secondary wage earner; a stay-at-home parent who cares for young children and manages or co-manages your household; a small business owner; or even an empty-nester who may be financially alone.
If something happened to ‘mom’ – an accident or illness, a disability or even death — what would you do? Insurance may be the solution.
Life insurance could provide tax-free funds at a critical time to pay your mortgage or other household debts or as a source of investment income to replace mom’s income.
•
Term life insurance can be a good ‘starter’ option for younger couples but gets more expensive over time and does not allow you to renew after age 75 or 80.
•
Permanent life insurance stays ‘in force’ for a lifetime and the premiums are set at the time of purchase and depending on the policy acquired may never change.
If ‘mom’ is a business-owner, life insurance could be used to repay business debt or a co-owner could obtain ‘key person’ insurance on ‘mom’ and use it to buy out mom’s interest in the business.
Mortgage insurance will cover your mortgage debt. You can get mortgage insurance from your lender but the more flexible option is renewable term insurance that allows your named beneficiaries – probably ‘dad’ if mom is insured – to use the proceeds to pay off some or all of the mortgage or other pressing expenses.
Disability insurance can provide a source of income should ‘mom’ become unable to earn a living or manage your household for an extended period.
Critical illness insurance provides a lump-sum of money that can be used to pay for the replacement of ‘valuable’ services and/or the costs of medical care.
Long term care insurance pays the costs of medical and home care including respite care that allows a caregiver to take a break. It protects your family’s existing financial assets and helps ensure a surviving spouse or children will receive an undepleted estate.
Today’s “moms” can usually be found at the wheel of a minivan full of hockey skates and ballet slippers, birthday parties at local amusement centers and running a business or career all at the same time. Whether that describes one person or a combination of family members, high activity – high ‘life value’ contributors can and should be protected by insurance. Your professional advisor can help you make the right insurance choices for your family.

Feel free to contact me or visit my website for more information.

Tags: money tips, Tips