🔄 I Already Have Life Insurance
Having coverage is a start — but coverage that isn't reviewed regularly may no longer match your needs. Here is what to know about reviewing existing policies.
When should you review your life insurance?
Life insurance needs change with life circumstances. Consider reviewing your coverage when:
- You get married or enter a long-term partnership
- You have or adopt a child
- You buy a home or take on significant new debt
- Your income changes significantly
- Your spouse or partner starts or stops working
- Your children become financially independent
- You start or sell a business
- A beneficiary dies or your family situation changes
- Your policy is coming up for renewal or conversion
A general guideline: review your life insurance at least every 3–5 years, or after any major life event.
Common issues found during reviews
- Underinsurance — Coverage purchased years ago may be insufficient given income growth, new debts, or additional dependants.
- Outdated beneficiary designations — A former spouse, a deceased parent, or a minor child may be listed as beneficiary.
- Term policy expiring — A term policy may be approaching the end of its term, raising questions about renewal, conversion, or replacing coverage.
- Group insurance gap — Employer coverage ends when employment ends. Many people overestimate how portable their group coverage is.
- No coverage for one partner — If a partner provides childcare or household management, their economic contribution often goes uninsured.
Conversion — a term insurance option
Many term life insurance policies in Canada include a conversion option — the right to convert some or all of the policy to permanent coverage without medical underwriting, regardless of your health at the time. This can be valuable if your health has changed since the original policy was issued. Conversion options typically expire at a certain age or date — check your policy documents.
Questions to ask an insurance advisor
- Is my current coverage amount still appropriate for my situation?
- Are my beneficiary designations up to date?
- If I have term coverage, when does it expire or renew, and at what cost?
- Do I have a conversion option, and when does it expire?
- Am I relying too heavily on employer group coverage?
- Are there coverage gaps I haven't accounted for?