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Are you over-insured? Add to ...

When we took a vacation in South America recently, my husband and I made sure to take out extra travel medical insurance. Although we have some coverage through both of our work plans, it just made us feel safer. We have the same attitude towards our life insurance.

Three years ago when our second child was born, we worked with a financial adviser to update our coverage. We added to our and life insurance policies. In calculating the amount of insurance we would need to support our children as well as a surviving spouse, we considered the fact that we have a mortgage insurance policy and separate life insurance coverage through our work plans.

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Canadians are among the people on the planet. It fits with our nationally cautious character. And it's a good thing. After a mortgage, life insurance is one of the most important personal investment decisions you can make in life.

But life insurance is also one of those areas of your family budget that it pays to get right. Too much insurance, or insurance that doesn't match your needs, could cost you thousands in unnecessary fees.

I found a helpful calculator on the website of insurance adviser , one that helps determine how much insurance you need based on your assets, liabilities, and the amount of income required to support your survivors. There is also a to determine if you are getting the right return on the insurance you already have.

My husband and I are confident that should the unthinkable happen, we now have the right mix of life insurance. But there are other types of insurance out there. If you're under the age of 65, statistics show that that you're less likely to die than suffer a debilitating injury or sickness. Disability and critical illness insurance are designed to cover expenses during these unexpected events. As much as we hate to think about it, we're looking into both.

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