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Do You Need Life Insurance?


Posted by Allison Barton

Aug 14, 2014 10:54:00 AM


Friends in a Park

At some point in time, you will most likely consider whether you need life insurance.

To help decide, start by asking yourself - if you died today, would someone suffer financially because of your death?

If the answer to this question is “yes” – then you probably need life insurance.

For many individuals, the answer is yes. Even if you leave no other costs behind, at the very least, someone might have to pay for your funeral or memorial, and very few people want to leave those costs to mourning spouses, family members or friends.

The average cost of a funeral in Canada is between $8,000 and $10,000.

(Funeral Service Association of Canada (FSAC) - October 2013)

Beyond funeral expenses, you may also leave behind debt, taxes or the cost of ongoing care of a spouse or children.  If you’re married, have children, are a small-business owner, support your parents, siblings or other individuals, you probably need at least some life insurance coverage.

Some People Don’t Need Life Insurance

There are individuals that may not need life insurance. If no one depends on your income, and no one will suffer financially when you die, then life insurance might not be a necessity for you - now.

For example, if you’re single and have no children, have very little debt and have enough in savings to cover funeral costs, then you don’t necessarily have an immediate need for life insurance.

Keep in mind though that your personal circumstances can change over time. If you’re young and healthy, you may want to look into buying a life insurance policy now, regardless of the fact that you may not currently have a spouse or children relying on your income.  In most cases, the younger you are when you apply for life insurance, the less you’ll pay.

Age is one of the primary determining factors for how much you will pay for life insurance.

(Canadian Life and Health Insurance Association, 2012)

The need for life insurance varies depending on your personal situation.  Take the time to look at your circumstances, ask the tough questions, and don’t be afraid to reach out to a life insurance advisor that can help you narrow down your options.  

To help connect you with an insurance advisor, check out Find an Advisor.