Why You Need Life Insurance Before Marriage in the Toronto Area.

Do I need life insurance?

I had to have this conversation with one of my clients the other day. They asked, “do I really need life insurance, we’re not even married yet”. In their case we came to the conclusion of absolute yes! They were planning to buy a house together and start their lives with one another, so to me it just made sense. To them, not so much!

Working with many individuals in the Toronto and Surrounding areas (Mississauga, Milton, Oakville, Burlington, etc…) we realize how hard it can be to afford housing, let alone buy property in these areas. With student loans higher than ever, credit card debt on the rise and house prices being on an increase for quite some time, it’s making it harder for young clients to take control of their finances.

Can you purchase a home yourself?

Let me ask this one important question, can you buy a property on your own? If you can’t, which is the majority of us, then ask yourself what will I do if something critical happens to me or my partner? Likely to say it will be detrimental to my Financial Plan and do our future. 

Qualifying for Mortgage in Milton, ON.

Check out this example. To qualify for $230,000 you need an estimated $50,000 income. Average family income (joint income) in Milton, ON is $107,000. In Milton, ON. the average townhome price is $640,000. What does this mean for you?

If you lose one of the two incomes (death, critical illness, or disability) you won’t be able to buy a home.

Assuming you both make $50,000 Your $460,000 mortgage gets sliced in half. You’re leaving your partner in a position that they just can’t get into the housing market in these areas near or on Toronto.

My advice, don’t overlook these insurance products, you need it!

Financial Plan

A Financial Plan starts with PROTECTION! You don’t get house insurance after the fire. You don’t build a home without a solid base to hold it up in all conditions. Life insurance, Disability Insurance and Critical Illness Insurance is your base to a solid Financial Plan that need to be in place so your life can move forward with no worries of being knocking your family down by a major health event. It’s these unforeseen events that will crumble all that you have worked so hard towards.

From here you can work to to save for a home, extra properties, RRSP and TFSA savings for retirement as well as planning the lifestyle you want. Planning travel and staycations, cars and fun nights out with friends. All of this can be achieved with a Financial Plan that is tailored to your family and the proper insurances so nothing can come between your family and future goals.

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