Identify what the policy would protect
If you died, could the people who depend on you continue paying for housing, care, and everyday expenses? Would someone need time away from work? Are there commitments you'd want funded?
Be specific. “Look after my family” is a good intention. “Help with ten years of household support and a mortgage payoff” is something you can estimate and discuss.
The financial effect can include unpaid work as well as income. A household may need paid care or practical help after losing the person who provided it.
Consider what you already have
Existing policies, workplace benefits, and available savings may cover part of the need. Review their amounts and conditions before deciding whether additional insurance would help.
Check whether your family could actually use those resources when needed. The value of a home or business may look substantial on paper without providing ready cash.
Savings and insurance play different roles
Savings can fund expenses and reduce a coverage gap. Building those savings takes time. Insurance can help address a larger potential loss during the years when the money hasn't yet accumulated, subject to the policy's terms.
Ask whether the people you want to protect would have enough if the loss happened soon, rather than after another decade of saving.
As assets grow and responsibilities change, the answer may change too.
Look at the cost you can sustain
Premiums need to fit into your ongoing budget. Compare the amount and duration of protection with the initial cost and any later increases.
If the first option is unaffordable, discuss other amounts, policy types, or durations. Understand what each compromise leaves uncovered. A shorter period may cost less today while leaving a need to address later.
When the need may be smaller
Someone with no financial dependants, sufficient accessible assets, and no unfunded protection goals may have a limited need for additional life insurance.
Someone else may want coverage for a lifelong dependent, a planned inheritance, charitable giving, or an estate need. Those goals deserve their own assessment even if there is no salary to replace.
The useful answer comes from the purpose, resources, and cost together. A person's age or relationship status alone won't settle it.
If you already have coverage
Ask what the policy does well and what may have changed. Check the benefit, beneficiaries, premiums, duration, and any important options or deadlines.
Before replacing or cancelling it, compare the existing and proposed terms and confirm any new coverage is in effect. An older policy may contain features worth keeping, and a new application may produce different terms.
Questions that make the decision clearer
- What specific financial loss would this policy help cover?
- How long would that need last?
- What resources are already available for the same purpose?
- What are the important exclusions and conditions?
- Can I afford the premiums now and at any scheduled increases?
- What would change if I chose less coverage or waited?
Bring the questions to a licensed insurance professional. A useful conversation should connect the recommendation to your circumstances.
You are looking for a fit
Life insurance can provide meaningful financial protection. The aim is to choose an amount, duration, and cost that make sense for the job you want it to do.
Start with the household numbers. Then compare options with a clearer idea of what you need.
Keep reading.
YOUR NUMBER.
How much life insurance do I need?
Start with the financial support you'd want in place if you died. Add the costs you want covered, then account for the resources already available.
PERMANENT?
Term vs permanent life insurance
Both can provide financial protection after an insured death. The main difference is how long the coverage is intended to last, alongside its cost and features.
COST.
How much does life insurance cost in Canada?
Your premium depends on the person being insured and the policy being considered. A meaningful price comes with a coverage amount, a duration, and the assumptions used to produce it.