The 10 Reasons Why You Need Life Insurance in Canada Now

top 10 reasons why you need life insurance in canada
top 10 reasons why you need life insurance in canada

Get free quotes to lock in rates before health changes. Peace of mind knowing your family is protected. Don’t wait – why you need life insurance in Canada.

Life insurance, fondly referred to as’ protection insurance,’ is a financial safeguard for you and your family during life’s most challenging times, such as critical illness or unexpected death.

In Canada, as in many other parts of the world, the financial aftermath of these circumstances can amplify the emotional turmoil experienced.

Hence, having life insurance can provide peace of mind by alleviating financial strains allowing families to focus on coping with their loss or illness.

Below are the ten cardinal reasons Canadians should consider life insurance urgently, enriched with data and specifics about the Canadian demographic and economic context.

When contemplating life’s great certainties and uncertainties, one thing is sure: life insurance is a crucial element in ensuring the financial security of our loved ones.

For Canadians, acquiring life insurance is not just a prudent decision; it is a pivotal step towards creating a safety net for the future.

With the evolving dynamics of modern life, having a secure insurance policy is more pertinent than ever.

So here are 10 reasons you should buy life insurance today :

Homeownership and Mortgages

In Canada, securing a mortgage is a significant financial commitment, often requiring a substantial portion of one’s income.

Meeting mortgage obligations can become insurmountable if unforeseen circumstances such as severe illness or death occur.

Life insurance policies in Canada, including decreasing term life insurance tailored for mortgages, can offer financial reprieve by covering outstanding mortgage amounts, ensuring sustained homeownership for the family left behind.

Tenancy and Renting

Protection insurance isn’t exclusive to homeowners; it’s equally vital for renters in Canada. Products like income protection insurance are pivotal for tenants as they replace income during illness or incapacity, ensuring the continued ability to meet rental and other regular expenses. This financial buffer enables focus on recovery without worrying about making ends meet.

Parenting and Childcare

Life insurance for canadian parents is an essential component of responsible parenting. It guarantees that children receive the care, education, and quality of life they deserve, even without their parents.

Beyond replacing lost income, life insurance for children can fund education or leave a financial legacy , allowing families to maintain their lifestyles and achieve their aspirations.

10 reasons why you need life insurance in canada
10 reasons why you need life insurance in canada

Funeral Expenses

The inevitability of death comes with substantial financial implications. In Canada, funeral costs can range between $5,000 and $15,000 ( Source : ).

A life insurance policy can alleviate this financial burden on grieving families, ensuring a dignified farewell without undue financial stress, thereby allowing families to concentrate on healing and remembrance.

Inheritance and Estate Tax

In Canada, the inheritance tax can pose a significant financial burden to heirs, necessitating prudent financial planning.

A whole of life insurance policy can be instrumental in covering these taxes, preventing the erosion of the estate’s value and safeguarding the wealth intended for the next generation.

Pre-existing Health Conditions

Facing or witnessing a loved one endure health challenges like cancer or mental health conditions can be distressing.

Life insurance provides solace and financial security to those grappling with health conditions, enabling access to protection and peace of mind regarding future financial stability.

Self-Employment Vulnerabilities

The burgeoning self-employed demographic in Canada, devoid of employer-provided benefits, is particularly susceptible to income disruptions.

Income protection insurance is crucial for this cohort, ensuring continued income flow during illness or incapacitation, mitigating financial anxieties and maintaining standard living conditions.

Insufficient Savings

With Canada’s rising cost of living, many find it challenging to save. Protection insurance can fill the financial gap during hard times, preserving any savings for future needs or aspirations, thus maintaining financial equilibrium and allowing for focus on recovery and well-being.

Read more about saving money buying life insurance at this article : Save Money On Life Insurance

Life Buzz Canada is a newspaper branding in life insurance to provide Life Insurance News – Trends and knowledges for Candian.

Young Adults and Financial Planning

The younger Canadian demographic, while seemingly less encumbered with familial or financial obligations, benefits significantly from the early acquisition of life insurance.

The relatively lower premiums and the proactive financial planning make it an advantageous venture, ensuring affordable and long-term financial security.

Healthy Lifestyle Incentives

Canadian insurers often provide incentives for maintaining a healthy lifestyle, reflecting lower premiums and additional rewards. These offerings encourage and reward healthy living, making protection insurance an attractive and affordable option for those leading a healthy life.


The diversity and adaptability of life insurance products available in Canada, including those provided by reputable services like, make them indispensable financial planning and security tools. Whether it’s addressing the needs of homeowners, renters, parents, couples, the self-employed, or young adults, life insurance offers tailored solutions to meet the diverse needs of Canadians.

While navigating life’s uncertainties and certainties, taking proactive steps by acquiring life insurance can make a significant difference, assuring Canadians of their financial stability and their family’s well-being.

By consulting with expert advisors at, Canadians can make informed decisions, choosing the best protection insurance products that align with their circumstances and future aspirations. Secure your peace of mind, and now explore your life insurance options with – the biggest life insurance newspaper in Canada.

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Written by Ben Nguyen

Ben Nguyen is an award-winning insurance expert and industry veteran with over 20 years of experience. He is the chairman and director of IDC Insurance Direct Canada Inc., one of Canada's leading online insurance brokerages.

Ben is renowned for his extensive knowledge of life, health, disability, and travel insurance products. He is the prolific author of over 1,000 educational articles published on LifeBuzz, BestInsuranceOnline, and InsuranceDirectCanada. His articles provide Canadians with advice on making smart insurance decisions.

With a Bachelor's degree in Actuarial Science and a Fellow of the Canadian Institute of Actuaries (FCIA) designation, Ben is frequently interviewed by media as an insurance industry spokesperson.

He has received numerous honors including the Insurance Council of Canada’s Pivotal Leadership Award, the Canadian Insurance Hall of Fame induction, and the President’s Medal from the Canadian Institute of Actuaries.

Ben continues to shape the vision and strategy of IDC Insurance Direct as chairman. He is dedicated to advancing the insurance industry through his insightful leadership.

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