What are the options of life insurance for retirement?

What are the options of life insurance for retirement?



Is it a good idea to take out life insurance when retirement is approaching? Like many other things, it depends on certain factors.

Many people question the need for a life insurance policy the moment they receive their RRSPs.

If you are single, without dependents, especially if you don’t have debts, you may not need it.

Furthermore, if you receive benefits from retirement savings at work, the chances are that you also have group life insurance.

To know whether subscribing to life insurance is warranted in your case, request for advice from one of our partners. Life insurance professionals are in the best position to help with your choices.

Fill out our online form, your information will be transmitted to one of our partners (they are insurance brokers and insurers).


Subscription to life insurance during retirement: a difficult decision!

Among the formalities that must be addressed when reaching a certain age is the question of funeral arrangements. Because even in good health, nobody is immortal. Of course, we wish to break longevity records. Inevitably, the issue of funeral expenses arises. Do you pay out of pocket or take out a life insurance policy to cover the cost? Employers who provide life insurance to their employees don’t necessarily offer the same type of coverage. There are no less than 700 different options available in Canada for life insurance so coverage varies, and maybe not just a little bit! The difference can be in the amount of the benefits as well as the duration of the coverage. For example, the indemnity may decrease once you retire, or you may also lose your coverage completely upon reaching a certain age or quitting your job.

In a nutshell, it is important to verify with your group insurance manager at work to know exactly what your group life insurance coverage provides.

It is important to take note that the death benefits from the provincial government, currently $2500, is taxable. Consider this fact when calculating your actual needs for funeral arrangements.

What are the funeral options?

Life insurance covers everything!

Life insurance for peace of mind

Here’s what you need to consider to pay for your funeral arrangements:

What are your choices?

When your group insurance expires, you can choose to pay for your arrangements from your savings or use a funeral home for pre-arranged funerals.

Note that the government death benefits don’t cover pre-arranged funeral expenses.

Life insurance will have multiple uses after death: reimburse funeral fees, pay debts (mortgage loan, personal loans, auto loan, etc.) and will provide an amount to be divided among your beneficiaries.

The average cost of a funeral in Quebec

Of course, the total cost of a funeral in Quebec varies greatly. On average, it costs about $8,000, or a minimum of $5,000.

How to leave a significant inheritance

Sometimes, you wish to bequeath something to an extended family member such as a niece or a cousin who is less affluent or handicapped, or to a friend.

In other cases, there may be family members living abroad.

You may also wish to bequeath a sum to a non-profit organization that is close to your heart.

Finally, it is possible that you have children or grandchildren to whom you want to leave an inheritance.

Life insurance is ideal for that. It is important to speak to a broker or financial advisor since the variety of life insurance products is quite large and each individual would have specific needs.


Some questions and answers about life insurance and money available to your heirs after death

Depending on the circumstances of your death, your loved ones can receive benefits that are independent of your life insurance.

Below are some questions you could ask yourself:

How does one prepare for death in Quebec?

One of the difficulties we all need to face one day is the loss of a loved one. In addition to mourning the loss, there are a number of formalities that need to be done. When a loved one dies, what do you do first? Can you receive benefits as a surviving heir? As the administrator of the estate, what should you do?

Visit the website of the Government of Quebec to learn more.


Does the date of death affect the amount of taxes payable?

Absolutely. All income from the current year is taxable such as if a person dies in December compared to a death in January.


Will your family receive compensation if you die due to a road accident?

Yes. The SAAQ offers the heirs an indemnity of $5,178 in cases of road accidents.


What happens to your life insurance if you stop paying the premiums?

As a general rule, your coverage ceases if you have been in default for more than 30 days.


Ask professionals how to plan your life insurance

If you are wondering about the need to buy life insurance, whether it is for funeral expenses, payment of debts, or for leaving an inheritance, the first thing to do is to contact a person who is knowledgeable about the subject.

By using our free online form, you can connect with one of our partners (all insurance brokers and insurers) who will be happy to assist you in making your choices. He can explain to you the nuances among the many different options available so that you can decide with full knowledge of the facts.

As a consumer, it is normal for you to want the best. In filling out our form, you can avoid hours wasted on the phone with agents trying hard to sell you their product.


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