Life insurance is not something you set up once and forget. As your life changes, your coverage can stop fitting the way it once did. This article explains the moments worth a fresh look.
Nothing here is a recommendation. Whether to change coverage depends on your circumstances, and any changes are subject to the policy terms and underwriting where required.
Marriage
Marriage often changes how you think about protection. A partner may now depend on your income, and the household's finances may be combined. A review can help make sure the coverage and beneficiaries reflect the new reality.
Divorce
Divorce can change both your financial situation and your wishes for who should receive a benefit. It is a common moment to review coverage amounts and, importantly, beneficiary designations, which may still name a former spouse.
Children
A new child is one of the most common prompts to review life insurance. A growing family often means higher ongoing costs, and existing coverage may no longer match the household's needs. Life insurance for parents is worth a look.
Home purchase
A new home usually means a new, larger financial responsibility. If you have taken on a mortgage, it is worth checking whether your coverage would help the household with that obligation. This connects to life insurance and your mortgage.
A larger mortgage
Even without a new home, a larger mortgage, such as from refinancing or upgrading, can widen the gap between your coverage and what the household would need. A review can help close that gap.
Income changes
A significant change in income, up or down, can shift what coverage makes sense. Higher income often means higher ongoing expenses, and existing coverage may no longer reflect the household's needs. Lower income can change what is affordable.
Job changes
A job change can affect life insurance through work, since group coverage is often tied to employment. A review can help make sure there is no gap, especially around the transition.
Business ownership
Becoming a business owner, or changes in a business you own, can shift both personal and business-related protection needs. The personal side connects to life insurance for self-employed Canadians.
Beneficiary changes
Life changes are a natural prompt to review who you have named as a beneficiary. Outdated beneficiaries can lead to outcomes that no longer match your wishes, so it is worth checking the designations, not only the amount.
Term renewal
When a term life insurance policy approaches renewal, it is worth reviewing your options well before the term ends. Premiums can rise significantly at renewal, and your needs may have changed. A review gives you time to consider your options rather than deciding under pressure.
Major debt changes
Taking on significant new debt, or paying off a large one, can change the picture. A review can help make sure coverage still fits the new level of responsibility.
Why reviewing matters
The reason these moments matter is that a policy that fit your life when you applied may not fit your life now. Reviewing helps make sure your coverage still matches your current circumstances, rather than the circumstances you had years ago.
If any of these moments applies to you, and you would like to review your coverage, I can help you look at it in the context of your current life, in plain language and with no pressure.