Why Personally Owned Life Insurance is a Smart Move for Canadians

Life insurance is a vital financial tool that can help protect your loved ones and your financial future. If you're a Canadian, you may be wondering whether to get personally owned life insurance or rely on debt protection or group benefit plans. Here's why personally owned coverage may be the best option for you.

What is personally owned life insurance?

Personally owned life insurance is a policy that you purchase and own yourself. You control the policy and can make changes as your needs change. You also choose the type of policy, the coverage amount, and the beneficiaries, unlike debt protection or group benefit plans offered through an employer or lender, which typically have lower coverage amounts and far less flexibility.

Advantages of owning your policy

• Flexibility: choose the policy type, coverage amount, and beneficiaries, tailored to your needs.
• Control: you own the policy and can change it as your life changes.
• Portability: take it with you if you change jobs or move to a new province.
• Tax advantages: in many cases, life insurance offers favourable tax treatment.
• Estate planning: use it to cover estate costs or provide for your loved ones.
• Peace of mind: knowing your family is financially protected.

Is it the right move for you?

Personally owned coverage may be the best fit if you have needs not met by group or debt-protection plans, you want full control of your policy, you value portability, or you want to use life insurance as part of your estate-planning strategy. It's also worth reviewing your coverage regularly, your needs change as you move through life stages such as having children or starting a business. A financial advisor can help you understand your options and choose the right policy.