6.2.11 Identify your insurance needs

From: Financial Consumer Agency of Canada

When deciding whether to buy insurance, and how much, you need to weigh several factors: what you stand to lose if an unexpected event were to occur, your financial situation, how well you would be able to cover your losses, how you feel about risk, and how much you can afford to pay in premiums.

Before buying insurance, look at all the protection you currently have, privately or through your employer. Keep in mind that some types of insurance are very expensive and may not be worthwhile. Consult an insurance agent or broker to help you determine what types of insurance and levels of coverage are available, and then decide what is right for you. This checklist can get you started. Check any statements that apply to you.

 Determining my insurance needs

Statement Recommendations
Consider life insurance, disability insurance and various forms of mortgage insurance.
Consider disability insurance and critical illness insurance.
Consider long-term care insurance.
Consider home insurance or condominium insurance (if you own your home) or tenant insurance (if you rent).
Consider various forms of business insurance.
Consider travel medical insurance and trip cancellation/baggage insurance.
Consider, in addition to your basic mandatory insurance, collision and comprehensive insurance.
Consider credit protection insurance and credit balance insurance.
Consider life insurance, credit protection insurance and credit balance insurance.

How much will it cost?

Naturally, how much your insurance will cost depends on what types of insurance you need, what levels of coverage you want and personal factors such as your health condition. Consult an insurance agent or broker to work out the costs.

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