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Yes, if you have people who depend on you for financial security. It’s true that many people don’t die until they’re older and no longer need coverage. But because you probably don’t know when you’ll die, paying the cost of life insurance is worth it to ensure your family will be protected in case the unthinkable happens.
You should buy coverage as soon as you have anyone who depends on you financially. This includes people you support financially and people who could become financially responsible for your debt if you died. For most Canadians, this happens when they get married, have a baby or buy a home with someone else.
The right amount of life insurance coverage depends on your family’s needs. In general, you should have enough insurance to financially support dependents, pay off debt and cover any other expenses you want to take care of for your family.
If you die while holding an active life insurance policy, your loved ones can submit an insurance claim to your life insurance company. Once your insurer processes and approves the claim, it’ll give your family the payout as a tax-free lump sum. Your family can use the money in any way they want.
