Deciding If You Need Life Insurance in Canada - dummies

By Margaret Kerr, JoAnn Kurtz

Part of Wills & Estate Planning For Canadians For Dummies Cheat Sheet

Building your estate is one way to ensure that your family will be taken care of — life insurance is another. Though life insurance is needed by some Canadians, others can go without it if their estate will easily cover the expenses related to their death. Do you need a life insurance policy? Here are some tips to help you find out.

You need life insurance if:

  • Someone you support will still need your income when you’re no longer alive to earn it.

  • You’re likely to die leaving a large debt and you want it paid without eating into the capital of your estate.

  • You want to create a fund to pay funeral costs, taxes, and probate fees.

  • You want to leave money you wouldn’t otherwise have to a family member, friend, or charity.

You don’t need life insurance if:

  • You don’t have anyone who depends on you for support.

  • You have no large debts or expenses.

  • You have plenty of cash or property in your estate to pay funeral expenses, taxes, and probate fees.

  • You don’t need or want extra money to leave to family, friends, or charities.