Based on these findings, what should Canadians know about life insurance?RBC Insurance offers these tips:
- Life insurance works by providing beneficiaries with a tax-free benefit after the policy holder's death. This money can help pay off loans and debts; maintain lifestyle and pay day-to-day expenses; pay for children's education and cover expenses like funeral costs, while protecting retirement or rainy day savings.
- While major life events, such as getting married and having children, motivate people to buy life insurance, Canadians need to re-evaluate their needs as their family grows and changes.
- Life insurance should be tailored to suit an individual's budget, lifestyle and needs at every stage of life — and offer the flexibility to make changes as needs evolve.
- Employer-provided plans can leave families unprotected because coverage amounts may be insufficient and may not continue if the individual leaves the job or becomes disabled.