Your life insurance needs will change over time. For example, if you start a family, your need for life insurance will increase dramatically with new dependants. Conversely, as large debts such as a mortgage are paid off, you may need less life insurance.
Review your coverage regularly, especially if you go through any major life change. A life insurance agent can help you think through the coverage you need, and explore the different ways insurance can help you achieve your financial goals.
3 life events that can change your insurance needs
New dependants – Your insurance needs will increase if you gain a partner or children who rely totally or partially on your income.
Loss of a partner – If you lose a partner through divorce or death, your insurance needs will increase if you have dependants who now rely solely on you to provide. But if your partner was your only dependant, your insurance needs will decrease with their loss.
Repayment of debts – Your insurance needs will decrease as debts are repaid.
Calculate your life insurance needs: Most insurance companies have calculators on their websites.
Content in this section is provided in partnership with Investor Education Fund, a non-profit organization founded and supported by the Ontario Securities Commission that provides unbiased and independent financial tools to help Canadians make better money decisions. To find out more, go to: GetSmarterAboutMoney.ca
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