Insurance Planning

Life changes constantly, and you can never predict when insurance will be needed.  Many people only purchase insurance when it is required, like when they are buying a new home.  But insurance can be an important safety net if the unexpected happens.  Here are some situations when insurance can help give you peace of mind and ensure that your family will be okay if anything should happen to you:

Long-Term Needs

Preparing for the loss of an income earner is the best way to protect your family.  Insurance can be used to provide living expenses for your family, especially if you have children and a spouse at home.

Short-Term Needs

Life Insurance proceeds can be used to pay for funeral costs and other expenses like credit card debt, personal loans, or a mortgage.  If your estate has non-liquid assets such as real estate, there may be a significant financial loss if these assets must be sold quickly to pay bills, as opposed to using the proceeds from an insurance policy to pay short-term needs.

Avoid Probate and Estate Taxes

The proceeds of a life insurance policy are not subject to probate and estate taxes unless you name your estate as the beneficiary of that policy.  If anyone else, including a trust, is the beneficiary, the proceeds are not included in probate and can be quickly transferred to survivors. Regardless of the size of the policy, any beneficiary would not have to report life insurance proceeds as taxable income in Canada.

Business Needs

If you own a business, life insurance proceeds can be an integral part of succession planning by providing funds to keep a business operational until it is sold. If you are a co-owner, insurance proceeds can be used to buy out a co-owners interests.  Life insurance can also be used to support the business should a key employee die.

Critical Illness

Critical illness insurance pays out a lump sum in the event of a critical illness such as cancer, a stroke, or a heart attack, and can help with the cost of medical treatment or for a family member to take time off from work.


Accidents and illnesses are a part of life, and financial commitments do not disappear if you cannot work.  Disability insurance provides monthly income to manage your expenses during the period when you are unable to work.