Life Insurance: Protecting Your Family

A life insurance guide for families who depend on your income.

Why life insurance matters

Life insurance replaces your income and pays off what you owe, so the people who depend on you can stay in their home and keep their plans on track.

• 31% of Canadians say they need more life insurance than they have, or have none at all.
• 1–2× your salary is what group life at work typically pays. Most families need far more.
• 7–10× your income is the coverage benchmark below which a family may be underinsured.

Sources: LIMRA and Life Happens, 2023 Canadian Insurance Barometer Study; Financial Consumer Agency of Canada benchmark, as cited by CAFII.

How much do you need?

Clear the debts

Your mortgage, car loans, lines of credit and final expenses.

Replace the income

Enough to cover your family’s living costs for the years they’d need it.

Fund the goals

Children’s education, a spouse’s retirement, and any legacy you want to leave.

Types of coverage

1. Term insurance. Affordable coverage for a set period, such as 10, 20 or 30 years. Best for needs that end, like a mortgage or raising children.
2. Permanent insurance. Whole life or universal life lasts your lifetime and can build cash value. Best for estate needs and lifelong protection.
3. Group coverage at work. A good start, but usually tied to your job and often only one or two times your salary.

Work coverage isn’t enough on its own. If you change jobs or retire, group coverage usually ends. An individual policy stays with you, wherever you work.

Coverage for every stage

• Starting out: Lock in low rates. Buying while you’re young and healthy keeps premiums low for years.
• Growing family: Your biggest need. A new mortgage and young children usually mean the most coverage.
• Peak earning: Review and adjust. As income and debts change, adjust coverage or convert term to permanent.
• Retirement: Plan the estate. Permanent coverage can pay final taxes and leave a legacy.

For parents and grandparents

Life insurance can do more than replace income. It can pass on wealth simply, quickly and tax-free.

• Leave a tax-free gift. A death benefit paid to a named beneficiary is generally received tax-free.
• Cover the tax bill. A RRIF, cottage or investments can trigger tax at death. Insurance can pay it so assets stay in the family.
• Insure a grandchild. A small permanent policy started young can grow with them for life.

Skip probate. With a named beneficiary, the death benefit is paid directly to them, outside your estate, without waiting for the estate to be settled.

Getting started checklist

• List your debts and monthly living costs.
• Check your coverage at work, and what happens if you leave.
• Name or update your beneficiaries.
• Decide how long your family would need income replaced.
• Compare term and permanent options with me.
• Review your coverage after any big life change.

What a claim pays for

A life insurance benefit gives your family choices at the hardest time, instead of forcing quick decisions about money.

• The mortgage and debts: Paid off, so your family can keep the home.
• Everyday living: Income for groceries, bills and child care for years to come.

When to review your coverage

1. Marriage or a new partner.
2. A new baby or an adoption.
3. A new home or a bigger mortgage.
4. A new job, a business or retirement.

Applying is simpler than you think. Many policies can be approved with a short health questionnaire, and some need no medical exam at all.

Let’s talk about protecting your family

I’ll help you work out how much coverage you need and find a policy that fits your budget.

Book a conversation with Michael, or call the office at 506-406-6100 (cell 506-440-6196). Email: [email protected]. Ask for a printed copy of this brochure at your next meeting.

For general information only; not tax or legal advice. Coverage, eligibility and premiums depend on the insurer and your circumstances. We’ll review the details that apply to you together.