6.2.2 When to review your life insurance

From: Financial Consumer Agency of Canada

Review your life insurance coverage when your life circumstances change. You may need life insurance, or more coverage, if you:

  • Get married, form a common-law partnership or have a baby. If you died tomorrow, life insurance could give your partner enough money to pay basic living expenses.
  • Buy a home or take on other debt. Life insurance could help your family stay in their home and pay off your credit cards and loans if you died or became unable to work.
  • Get divorced. If you pay for your children’s support, life insurance could cover these costs in the event of your death. Your divorce agreement may require you to buy life insurance.
  • Support aging parents. Life insurance could provide funds to help support your aging parents if you die.
  • Own a business. If you buy insurance for yourself or a business partner, it will help keep your business going if something happens to one of you. Likewise, if your business takes on a big loan, life insurance could pay it off if you die.
  • Retire. If your pension income will stop or be reduced after your death, life insurance could help your family cover your funeral costs and pay their living expenses when you die.
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