If you rent, do you need mortgage life insurance – clearly you do not. However, you still need to have life insurance for renters that will provide sufficient cash to pay your family’s rent for a life time which is the same as people who have their own home fully paid for. Their housing needs are covered. You can calculate the amount of renters’ life insurance required by going to the life insurance calculator and completing the form. Use the income replacement part to include how much you pay for rent.
Choose $5,000 for final expenses (the minimum amount) and then 4% for the return on your investment and 3% for inflation. Next figure out what your annual cost of rent is (12 times your monthly rent and other costs you pay directly like cable) and choose the time up to 40 years.
For example, a person who pays an average of $1,250 per month for rent and other costs would use $15,000 as the annual family income required. The amount of insurance required to provide rental accommodation for your family for 40 years would be almost $500,000. You could a shorter time to reduce the amount. You could also add in what the income providers earn as that would also stop which would provide the real requirement for life insurance. The next question is do you provide rental life insurance on both partners’ lives for this possibility. The answer is of course, you will want to have the family accommodation covered regardless of which spouse passes.
The principal is the same as mortgage life insurance – providing accommodation for your family for their life. Once you have decided to purchase renters’ life insurance the best place to purchase it is IDC Insurance Direct Canada. They have been helping Canadians purchase life insurance for almost 10 years on line having pioneered the sale of life insurance online. Their 12 brokers have over 168 combined years of experience and would welcome having a conversation with you about protecting your family with life insurance within your budget. You can reach them at 1-866-238-9271.