If you’ve ever wondered, “Is life insurance worth it?” you’re not alone. It’s probably one of the most common questions we hear at TermCanada, and honestly, it’s a fair one.
Life insurance isn’t something to be taken lightly. It’s a long-term commitment that involves trust.
Let’s take a minute to break down the facts together and explore how life insurance can work in your world.
Let’s Address the Less Savory Stuff First
Life insurance agents don’t always have the most stellar reputation. You may picture a guy inappropriately pushing his business card at a wedding during the toast. Now I am here to say that image is outdated, but it didn’t come out of nowhere.
And let’s be clear, most agents do NOT fit this stereotype. At TermCanada, we operate differently. We don’t sell policies that pay us the most to up our commissions. We help Canadians find coverage that makes sense for their needs and budgets. Our independence allows us to work with multiple insurers, which means we’re not tied to a single company’s products.
Life insurance isn’t a one-time purchase. We have long-term relationships with our clients, not transactions. You’re not just buying a policy; you’re building a plan that helps protect your loved ones in the event of something tragic happening. When that call comes, we are there to help your loved ones through the process… and that makes our job even more important.
Is Life Insurance Worth It? That’s a RESOUNDING YES!
When people ask if life insurance is worth it, what they really want to know is: Will this actually help my family? Or is it just another bill I don’t need?
Let’s be clear, life insurance is one of the best investments you can make in your family’s security when it’s structured properly and fits your circumstances.
Imagine losing a loved one unexpectedly with incredible grief, and then unpaid debt, lost income, and legal or estate costs. Life insurance gives your loved ones breathing room, and I don’t know about you, but that’s vital for me.
The key is buying the right type of insurance, not just ANY insurance.
Term Life Insurance is Simple, Affordable Protection When You Need it Most
Term life insurance is our most popular product. This is for good reason. It’s simple, budget-friendly, and designed to protect you during your highest-risk years.
When you buy a term policy, you choose a set length. Typically, my clients purchase terms ranging from 10 to 30 years. During that time, your premium stays level. If you pass away during the term, your beneficiaries receive a tax-free payout. That money can go toward the mortgage, childcare, debt, tuition, or anything else your loved ones need.
Most Canadians buy term life insurance to cover the years when they have young kids, a mortgage, or other major financial responsibilities. Once those responsibilities shrink or disappear, the need for coverage often does too. That’s why term insurance works so well. It aligns with the years you need it.
Who Needs Life Insurance? YOU That’s Who
You might think life insurance is only for people with kids or big houses, but nothing could be further from the truth. Let’s walk through a few real-life examples.
If you’re single but have debts, like student loans or a car loan co-signed by your parents, life insurance makes sure your family isn’t left with the burden if something happens to you.
If you’re a young couple just starting a family, term life insurance gives you an affordable way to protect your growing household. Even a modest policy helps your partner and kids feel more financially secure if the worst happens.
This is another often overlooked use for life insurance. Homeowners frequently use life insurance to protect their mortgage. If one spouse dies, the other can use the insurance payout to stay in the home without struggling to make payments on a single income. But it’s far less expensive than the mortgage insurance offered by the bank, and your beneficiary has full control over the proceeds.
What if you’re self-employed or own a business? Life insurance becomes part of your stability plan. It helps cover business loans, protects key employees, or funds a buy-sell agreement to keep your operation afloat if you’re no longer around.
Even in retirement, some Canadians use life insurance as a tool for estate planning or final expense coverage. This works especially well if they want to leave something behind or avoid passing on debt.
What Happens If You Don’t Have Life Insurance?
This is the tough part to talk about, but it’s also the most important.
Without life insurance, your family could be left trying to figure out how to pay the bills, keep the house, or even cover the cost of your funeral. We’ve all seen GoFundMe campaigns pop up after a death. While communities sometimes rally, it’s far from a guarantee. Do you really want your family to find out how much support they have while they are grieving?
One of our clients once told us about a friend whose husband passed away suddenly. He had no insurance, and she was left with three kids and a pile of debt. The support she received helped them get through it, but it wasn’t easy.
On Nov. 11, the day of his brother’s funeral, the organizer gave the family $7,000 of the $15,200 raised. But the remaining $8,200 had not been paid to him, and he had an outstanding bill from the funeral home to worry about.
“I was giving the organizer the benefit of the doubt,” Oliver told CBC News.
His feelings of anxiety turned out to be warranted — months later, the organizer admitted to him in a text message that she had withdrawn the remaining money and gambled it away.
What If You Outlive Your Policy?
What happens if I don’t die before my term is up?
My answer? That’s exactly what you want.
Outliving your term means you stayed healthy and didn’t need the safety net. If you still want coverage at that point, many policies give you the option to renew or convert to permanent life insurance without another medical exam.
This flexibility is one of the reasons term life remains the best option for most Canadians. You get protection when you need it most, and options when your situation changes.
Is Life Insurance a Waste of Money?
No! However, the key is to buy the right policy. If you buy an expensive product that doesn’t align with your goals or stage in life, then, sure, it might feel like a waste.
But when you purchase life insurance through TermCanada, we walk you through all your options to help you avoid common mistakes. You won’t be stuck paying for a bloated permanent policy when a low-cost term plan would do the job better.
This is about protecting your family.
What Kind of Life Insurance Makes Sense?
Now that’s not the easiest question. To be quite honest, it depends on your goals. If your primary concern is protecting your income while you raise a family, term life insurance is your best bet.
Final expenses, leaving a small inheritance, or managing taxes on your estate, require a permanent policy. While permanent coverage costs more, it’s designed to last a lifetime and often builds cash value over time.
At TermCanada, we help you weigh your options based on your health, your budget, and your long-term goals. So give us a call today, we can help walk you through your options.
How Much is Too Much or Too Little
There’s no one-size-fits-all answer here, but a good starting point is 10 to 15 times your annual income. From there, you can adjust based on your mortgage, other debts, the number of dependents, and what you want the money to be used for.
Our free life insurance calculator at TermCanada.com can help you run the numbers in just a few minutes.
Why Canadians Choose TermCanada
We’ve helped thousands of Canadians find the right coverage without the pressure or confusion that can come from tied agents or call centres. Our platform lets you compare rates from the top insurers in the country.
If you want to talk to a real person, we’re here for that, too. Our licensed brokers provide honest advice tailored to your needs, and we stick with you through the life of your policy.
We believe that life insurance is worth its weight in gold, when it’s done right. And we’re here to make sure you don’t overpay or get stuck with something you don’t need.
Final Thoughts
Is life insurance worth it? It sure is… and I don’t just say this as a life insurance agent with 30 years of experience in the trenches.
It’s affordable, it’s flexible, and when the worst happens, it gives your family financial security at a time of emotional chaos.
We buy insurance for our homes, our cars, and even our cell phones, but one thing too many people forget to insure is their lives. And that’s the one thing your family can’t replace.
And the best part? With TermCanada, it’s easier than ever to get started.
Ready to find the right policy?
Visit TermCanada.com to compare quotes, use our calculator, or speak with a licensed advisor today.
