A recent poll by a major Canadian insurance company indicates many Canadian couples aren’t discussing the important topic of life insurance for their family. It found that almost a third of couples, many with children, had never discussed life insurance, with those under 35 the least likely to have talked about it. This common failure has potentially serious implications, as it could mean having no coverage, insufficient coverage, or having the wrong type of insurance for your needs.
- Why don’t couples talk about insurance? 50% say they have never thought about it, while a third attributed it to a lack of seriousness in their relationship. Life insurance can seem overwhelming and hard to understand, so as a result many people don’t put enough priority on having those hard conversations around their life insurance coverage needs.
- If you’ve never thought about it, now is the time. Having adequate life insurance is essential to ensuring your family’s financial well being. In the event of your premature death, your surviving partner or children will be financially secure. If you should both pass away, it ensures the guardian of your children will have the financial resources needed to provide their living and educational needs.
- The sooner you have this conversation and understand how life insurance works the better. Insurance premiums are based on age, health, lifestyle, and life expectancy, so the younger and healthier you are, the less you’ll pay. In addition, by purchasing permanent or term insurance that’s guaranteed renewable, you will ensure coverage down the road even if you develop health issues that would cause you to be uninsurable at that time.
- I can’t stress enough how important it is to review your insurance at least every few years. It’s important to understanding that your life insurance needs will change over your lifetime. Any time you undergo a significant life event such as the birth or adoption of a child, a change in marital status, or the purchase of a home or vacation property requires a review of your coverage.
- You may need to increase or decrease your coverage, change the type, or select new beneficiaries based on any new circumstances. This is especially important for divorced couples or blended families.
I understand how difficult the subject of death is and the reluctance to talk about life insurance. After all, it means contemplating the emotional and financial consequences if you or your partner were to pass away. The death of a family member is difficult enough to work through without having to face financial hardship or a major reduction in one’s lifestyle as a consequence of having inadequate coverage or no coverage at all.
Sitting down with an objective, knowledgeable advisor can give you the chance to discuss some of your goals. Ensure that your overall financial strategy is a joint effort that suits both your needs, as well as those of your children.
Ensure that you have the peace of mind of knowing that in the case of a negative life event, there’s financial security for your family’s future.