Life insurance is one of the most important elements when it comes to estate planning in Canada. It is not compulsory for every individual to have life insurance but it comes in handy if you have young children or you are supporting a spouse or child who is disabled. Apart from the fact that it helps you to support your dependents, it is also a way of getting immediate cash when you die. This money can be used to cater for your funeral arrangements and pay off any estate or income taxes that you owe.

Life insurance is also beneficial to cater for your family's long-term needs. If you have a large number of people who are depending on you to cater for their living expenses, it is better to get a life insurance policy to ensure that their needs are met even after your death. The money can be used to educate your children or provide cash for a spouse who was not working. By having a life insurance policy, you are relieving your family from financial obligations that they would not have to deal with if you were around. Life insurance provides for the income needs of the spouse you leave behind to take care of the children. The cost of living is rising and it is increasingly becoming difficult for one spouse to earn enough money to cater for all the family expenses.

After a spouse dies, the surviving one has to wait until a certain age to get social security therefore the money from the life insurance policy will be used to provide for the living expenses. It is also a good way of ensuring that your spouse has adequate money to use after retirements. This is an advantage if a spouse does not have a retirement plan.

It takes a long time to get over the death of a spouse and expenses like mortgage can make the situation even worse. Life insurance payments can be used to cater for the mortgage payments for a significant period of time. Most parents desire to provide their children with the best education they can afford and after the death of a spouse, this can be very difficult. Proceeds received from life insurance can be used to pay for college education which tends to be very expensive.

Life insurance is also a way of protecting your assets. The other advantage that you get with life insurance is that the assets that you are protecting will appreciate over time. The main reason why people need to have life insurance is to make sure that the family's financial interests are protected from death, illness or loss of income.

Life insurance is one of the only investment products that can be designed to meet the specific stages of life that a policy holder is in. The policies are used to cater for individuals who are young and still single, the young married ones or the married ones who already have children to take care of.

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