6.1.4 Insurance and you

There are many reasons why people avoid buying insurance. Most of them are based not on facts or logic, but on personal habits and emotions.

The decision to get insurance depends on your circumstances, your priorities and your stage in life. For example:

• You may want to consider getting life insurance if you have a partner who might need support, or if you decide to start a family.
• Your provincial or territorial health plan may be enough to cover your basic needs, but if you think you will need additional care, you may wish to get extended health insurance.

Decide carefully whether to buy insurance or not. You need to weigh the likelihood of an event happening against the financial hardship that would result if it did. You also need to consider how important it is to you to have the peace of mind that comes from knowing you are protected. If you think that you cannot afford the risk of financial loss or damage, you should consider buying insurance. For more on how to determine your insurance needs, see the Identify your insurance needs section.

Definition

• Risk: The likelihood that an insured event, such as loss or injury, will occur while your policy is in effect