We don’t believe everyone needs life insurance, nor that it should be kept forever. Our guiding principle is to protect what matters most, precisely when it matters most. In practice, you truly need coverage only if:
- You have a spouse who doesn’t work—or whose income is much lower than yours—and
- You have children under 18 who rely on your earnings.
If neither situation applies, insurance is generally optional rather than essential.
That said, you might still want coverage for two key reasons:
- Locking in a lower rate while you’re young
Premiums rise with age and health changes, so buying earlier can mean significant long-term savings—even if you don’t yet have a partner or kids. - Planning for estate taxes
Large RRSPs, TFSAs, non-registered investments, or multiple properties can trigger a sizable tax bill when you pass away. A life insurance policy earmarked for those taxes lets your heirs inherit the rest of your assets with fewer complications.
In short, you need life insurance only when dependants count on your income for day-to-day living—typically, a non-working spouse and young children. Outside of that, insurance can still be a strategic want for cost savings or tax planning, but it isn’t a necessity.
