The holiday season is one of the best times of the year, filled with quality time spent with loved ones, delicious food, and thoughtful gift exchanges.
As the holidays approach, have you given some thought to who you need to cross off your gift list this year? You probably want to get them a gift that will be meaningful while making them smile from ear to ear. An ugly Christmas sweater isn’t going to cut it! Think outside the bow wrapped (gift) box and give them something they’ll never forget.
Life insurance likely isn’t the first thing to come to mind as a holiday gift for a cherished person in your life, but we want to share how it can truly be the gift that keeps on giving every holiday season.
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Reasons Why Life Insurance Can Be a Meaningful Gift During the Holidays
Here are the top reasons why life insurance can be a wonderful gift to give someone special in your life:
The Gift of Peace of Mind
Life Insurance provides the recipient of a policy with peace of mind that their beneficiaries will be financially protected should they pass away.
This gift can help to manage stress since they’ll know their family, friends, or other dependents will be taken care of when they’re no longer here. For instance, the benefit from a life insurance policy can cover living costs so their beneficiaries can maintain a certain standard of living even without the income of the insured.
Financial stress can negatively impact a person’s physical and mental health.1 Those experiencing this type of stress are two times more likely to report poor health outcomes and four times more likely to suffer from sleep issues, headaches, and other illnesses.1 However, the recipient of your life insurance gift will rest easy knowing their loved ones are safeguarded financially.
Life Insurance is Affordable
Depending on the life insurance provider and the plan your loved one qualifies for, life insurance can be considered a comparable gift to other traditional holiday choices with a higher price point.
Many people overestimate the cost of life insurance; the truth is that there are many factors that affect what the premiums will be. Significant medical advancements over the past decades are helping people to live longer, healthier lives and allowing insurance rates to be more affordable than ever before. Try our life insurance calculator and quick quote tool to discover just how affordable life insurance rates can be.
Respect your holiday budget and give a meaningful gift that keeps more of your hard-earned money in your pocket! Help your loved one secure the financial protection they need, at a price you can both feel good about.
Who Can You Gift Life Insurance To?
If you’re considering gifting life insurance for the holidays, it’s important to know that In Canada you can purchase life insurance for almost anyone, provided you meet the following two requirements:
Consent
The first thing you need before you can purchase a life insurance policy as a gift for a loved one is permission from the recipient of the gift. This person will provide their permission via signature during the life insurance application process.
Proof of Insurable Interest
The second thing you need to consider before purchasing a life insurance policy as a gift for someone is proof that you would face a financial loss or hardship if they were to pass away. Typically, a life insurance provider will investigate the relationship between all parties by speaking to the policy owner, beneficiary, and the person who is insured in order to confirm that there is proof of insurable interest.
You may have a person in mind who can benefit from receiving life insurance as a gift this holiday season. But we want to provide further inspiration for other loved ones in your life who could also benefit from having this peace of mind. Here are a few people you can consider giving the gift of life insurance to:
- Spouse
- Siblings
- Kids
- Grandchildren
- Parents
- Yourself (you deserve a gift too!)
Types of Life Insurance You Can Gift
When mulling over the type of life insurance you want to gift your loved one during the holidays, there are a few options to consider. To begin the process, ensure you speak with a life insurance advisor and the recipient of the gift in order to determine the appropriate plan type and coverage for the person’s needs.
Permanent vs. Term Life Insurance
Permanent life insurance provides permanent coverage – which means a person is covered for the duration of their life. The premiums remain locked in at the rate the person was given when they purchased the policy. Meanwhile, term life insurance provides coverage to the life insured for a period as defined by the policy (typically 10, 20, 25, 30 years). Once the term is over, they have the option of either renewing or ending the coverage.
Traditional vs. No Medical Life Insurance
Traditional life insurance can take from one to three months for the policy to be issued since it is fully underwritten. It requires a full medical exam including needles, fluid samples, and potentially more tests if needed. In contrast, no medical life insurance doesn’t require medical exams or tests, therefore a policy can be issued in just a few days.
Canada Protection Plan offers No Medical and Simplified Issue Life Insurance, a life insurance option that can be gifted to a cherished person in your life who can truly benefit from it.
