What does it mean, to protect your family?

We've all said to ourselves, "Why didn't I learn this at school?" 🤔 Whether it's while making your budget, paying your taxes, choosing plan A, B or C of your group insurance or even while filling out a government form, we often come to the same conclusion: Being a responsible adult is complicated!

In this blog, we take 2 minutes of your time to explain to you what life insurance is all about, that big misunderstood thing that your parents often talk about and that makes your eyes roll every time 🙄 More specifically, what does protecting your family with a life insurance really means?

Protect who?

In life insurance, you insure yourself to protect your loved ones. It's as if by putting on a helmet yourself, your child would be safe if he or she fell off the bike. It sounds illogical and yet it's not only true but it's very effective!

You probably guessed it, but your life insurance will pay a death benefit when you're gone. So you'll never really benefit from it. Instead, your spouse, children, parents or loved ones will be the real people protected by your life insurance. Since they would be the people most affected by your death, they are the ones you really protect by taking out your insurance.

Buying a life insurance is therefore a very generous act on your part 👌

Protecting against what ?

Now that you know for whom you are buying an insurance, it would be good to know for what exactly. Here is a short list of the financial impacts that could fall on your loved ones following your death :

• Funeral expenses: You might not know it, but dying is as expensive as living 😕 Ranging from 10 000$ to 20 000$, "funeral expenses" can quickly become a burden for those who will have to take care of them. Among other things, a life insurance policy can cover these expenses.
• Debts : Student loans, lines of credit, car loans, not to mention the most important of all: the mortgage 🏡 Upon your death, your heirs will inherit not only all your assets, but also all your debts. Therefore, life insurance will usually include enough money to pay off these debts and avoid giving your heirs any problems
• Income replacement: If you are married/common-law partners or have children, chances are that your family is financially dependent on you. This means that people depend on part of your salary to support themselves. In the event of your death, your family would lose your salary and there would be a hole to fill in the family budget. With life insurance, your salary can be replaced so that your family can have the same lifestyle despite your absence.

Depending on your situation, the financial impact of your death could vary from a few tens to a few hundreds of thousands of dollars 💰

Protecting yourself how?

The best way to answer this question is to discuss it with an expert. There are many types of life insurance, and you can quickly get lost in front of so many choices! Many professionals, such as financial security advisors, are there to guide you through these decisions.

With Emma, you'll be able buy your life insurance in minutes and chat with an advisor, without any additional fees and without an appointment, in the comfort of your own home 😇.

There you go! Now you know everything a responsible adult needs to know about life insurance! As we say, it's not always at school that you learn the most important things 😉