Life Insurance 101

Do I need life insurance?

If someone depends on you financially, you're most likely someone who needs life insurance. The harder question is usually how much — but let's start with whether it applies to you at all.

By Trevor Perron, Independent Insurance Advisor · Serving Manitoba & Ontario

Life insurance provides cash to your family or loved ones after you pass away. That payout — the death benefit — replaces your income and the many unpaid ways you support your household. Your family can use it to cover funeral costs, a mortgage, education, day-to-day expenses, and more.

The simplest test is this: if your income or your role would leave a financial gap for someone if you were gone, life insurance fills that gap.

People who often need life insurance

Couples

Many partners would find it hard to make ends meet without the other's income in the picture — covering shared rent or a mortgage, loans, and everyday living costs on a single income is a real strain.

Couples with children

On top of losing one income, the surviving parent may face new costs like childcare that the other parent used to cover. Coverage keeps those plans intact.

Single parents

As the sole source of financial support, you'll want to think carefully about how your child's needs would be met if your income disappeared.

Stay-at-home parents

From meals to school runs to homework, stay-at-home parents handle responsibilities that would be genuinely costly to replace. That value deserves protection too.

Empty nesters

Many surviving partners couldn't maintain the lifestyle they worked hard to build without the security of a policy.

Retirees

Depending on the size of your estate, your heirs could face significant costs. A policy can provide tax-free funds to handle immediate expenses and preserve what you intend to pass on.

Business owners

Life insurance can support your business in several ways if you, a co-owner, or a key employee passes away — from funding a buy-sell agreement to keeping operations stable through a transition.

The bottom line

Life insurance provides peace of mind and financial security, making sure your loved ones — or your business — are protected no matter what happens. If anyone relies on you, it's worth understanding your options. The next step is figuring out how much coverage actually makes sense for you.