If you have debts – or people who depend on you financially – you likely need life insurance.
Life insurance can help ensure that your family will be able to maintain their lifestyle if you were to die unexpectedly. The tax-free life insurance payment that is made upon your death can be used to:
replace some or all of your income,
repay debts or continue debt repayments on mortgages, loans and credit cards,
pay for child care and any current or future education costs for your children, and
cover your funeral and estate costs, such as probate fees and capital gains taxes that may be due on death.
2 questions to ask yourself
If you are a main or co-breadwinner, will your family still have the money they need to cover day-to-day expenses if your income is lost?
If you are a full-time caregiver, will your family be able cover the cost of child care if you’re gone?
If you answered “no” to either question, consider life insurance to help protect your family financially.
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