How much life insurance do I need?

The amount of insurance you need depends on many factors, including your occupation, lifestyle, income, assets, debts, the needs of your dependents and your financial capacity. Insurance needs are unique to each person and may change over the course of a lifetime. Only insurance advisors can help you determine what is best for you, but here are some of the factors they will consider.

Job

The day-to-day activities of your career are important to insurers. The profession of members of the Canadian Armed Forces, Canadian Coast Guard and Royal Canadian Mounted Police presents an element of risk, which is taken into account when determining the best insurance policy for you and your family. SISIP Financial offers life insurance policies with no exclusions for war risk and hazardous occupations.

You may also receive benefits at your job. Your insurance advisor can help you find the best policy to meet your business needs and complement the coverage provided by your employer.

Lifestyle

Life can be adventurous; so you’ll want a font that takes into account your hobbies. Maybe you’re a boating or rock climbing enthusiast, or go on off-road or snowmobile trips in your spare time? Because insurance is there to mitigate risk, choose coverage that takes into account your active lifestyle. Life insurance offered by SISIP Financial supports your lifestyle and offers policies that do not exclude hazardous hobbies or occupations.

Debts

If something happened to you, you wouldn’t want your family to struggle to pay the amounts owed. The mortgage loan is often one of the biggest debts incurred. You can also possibly add a student loan, a line of credit or a car loan. These debts are key in determining the amount of coverage you need. If you have a $200,000 mortgage, a $15,000 student loan, and an $8,000 car loan, your policy should ideally cover that $223,000. Keep in mind that mortgage insurance pays off the amount owed to the bank, while life insurance goes to your beneficiaries.

Income replacement

If you are the primary breadwinner in your family, income replacement is an important consideration when determining your coverage. You can talk to your advisor about the many personal factors that come into play, but generally you should plan for income replacement for five to ten years. So if you earn $50,000 a year, you can choose a policy that provides income replacement of $250,000 to $500,000.

Family members

Your advisor can help you determine the appropriate coverage for you or your spouse in the event one of you outlives the other. The insurance is intended to cover financial losses in the event of death. If you have dependents, they can be added to a policy as an endorsement to cover basic funeral costs, but they don’t necessarily require the same level of coverage.

Financial capacity

Life insurance policies are personalized for each person. When choosing your coverage, your insurance advisor can help you choose an affordable premium that fits your monthly budget.

Investments

Depending on the type of policy you choose, insurance can be part of your investment portfolio.

Contact your SISIP Financial insurance advisor to find out about a flexible and affordable policy that will secure your family’s future.