In this series, Elevated Wealth, they’ll give you their expertise as CERTIFIED FINANCIAL PLANNER® professionals so you can elevate your financial planning.
Today's topic is insurance!
"Imagine you have a money-printing machine in your basement—would you insure it? Of course! Now, think of yourself as that machine," says Kayla.
Kayla and Karen give an explanation about the differences between term and permanent insurance.
"Term insurance is a product you would purchase for a finite period of time," she explained. "It's often used to cover debts like a mortgage or to provide income for your family if you pass away unexpectedly."
In contrast, permanent insurance lasts a lifetime and is designed to build value over time. Permanent insurance, such as whole life and universal life policies, is often used for long-term financial planning, like covering estate taxes or leaving a legacy for your heirs.
Karen emphasized the two primary reasons people get insurance: owing money and loving someone.
"If you owe someone, like a mortgage or car loan, term insurance ensures your loved ones aren’t left with these burdens if you pass away. If you love someone, insurance can provide financial security for your family, ensuring they maintain their standard of living."
Insurance might not be the most exciting topic, but it’s vital for a comprehensive financial plan.
"A well-structured insurance plan can provide peace of mind and financial security, helping you navigate life’s uncertainties with confidence," Karen concluded.
Learn more about critical illness insurance, disability insurance and more by watching the full episode!
If you have questions about insurance and financial planning, contact Karen Erickson and Kayla Caruana below.
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