As a life insurance broker, I get this question quite often: “Is life insurance actually worth it?”
And honestly, I get why people ask. It needs you to think ahead – sometimes decades ahead. That alone makes many people uncomfortable.
I have sat across kitchen tables with many Canadians from all walks of life. I have learned something important through these interactions. Life insurance isn’t really about death. Instead, it’s about responsibility, planning, and peace of mind while you are alive.
So let’s talk about whether life insurance is worth it.
Why This Question Comes Up So Often
First of all, most people don’t wake up excited to buy life insurance. Especially for young professionals or new parents, money already feels stretched. Life feels financially stretched from rent or a mortgage, childcare, and student loans. Groceries and saving for the future are on top of that. Life insurance can feel like “just another bill.”
At the same time, many assume it’s either too expensive or unnecessary if they are young and healthy. Others believe workplace coverage is enough. And some simply avoid the topic because it forces them to think about uncomfortable “what ifs.”
Nevertheless, avoiding the question doesn’t make the risks disappear. In fact, it often makes them bigger.
What Life Insurance Really Does
At its core, life insurance creates financial stability when life takes an unexpected turn. More importantly, it ensures that the people who depend on you aren’t left scrambling.
For example, if you have:
- A partner who relies on your income
- Children who need care, education, and stability
- Debt that doesn’t disappear when you do
- Or even parents who count on your support
Then life insurance becomes less about you and more about them.
In other words, it’s a safety net. It is not an investment, not a gamble, and not a luxury.
A Real Story From My Own Experience
A few years ago, I worked with a young couple in their early 30s. They had just welcomed their first child and bought a townhouse outside Toronto. Like many new parents, they were exhausted, excited, and overwhelmed.
At first, they weren’t sure if they needed life insurance. They were healthy, active, and felt invincible. Still, they decided to put basic coverage in place. It was nothing fancy. It was just enough to cover the mortgage and future expenses if one of them passed away.
Unfortunately, less than couple of years later, one of the partners was diagnosed with an aggressive illness. It came out of nowhere.
Because they had been honest on their application and secured coverage early, the claim was paid quickly upon passing away. As a result the spouse didn’t have to sell the home and all other spendings were not affected.
Later, the surviving spouse told me something I’ll never forget:
“The insurance didn’t fix my grief. It gave me breathing room. It bought me time to heal.”
That’s when the value of life insurance becomes crystal clear.
Is Life Insurance Worth It If You Are Young?
Short answer: yes and no but mostly yes – and here is why.
First, life insurance is generally cheaper when you are young and healthy. Second, locking in coverage early protects you against future health changes. And third, even if your life feels simple right now, it won’t stay that way.
For instance, you might:
- Get married
- Have children
- Buy a home
- Start a business
When that happens, coverage becomes more expensive and sometimes harder to qualify for.
So while life insurance might not feel urgent today, it can be incredibly valuable tomorrow.
What About Workplace Life Insurance?
Many Canadians rely solely on group life insurance through work. While that coverage is helpful, it often has limits.
For example:
- Coverage usually ends if you change jobs
- The amount may not be enough to support a family long-term
- You don’t control the policy
Therefore, while workplace insurance is a great supplement, it is rarely a complete solution.
The Role of Honesty — This Matters More Than People Realize
Here is the part most blogs don’t emphasize enough.
Life insurance only works if your application is honest.
Even small omissions — like leaving out past smoking, medications, or medical tests — can cause serious problems later. In Canada, insurers have the right to investigate claims. If they discover misrepresentation, a policy can be reduced or denied altogether.
It may be tempting to gloss over details to get a better rate. However, honesty is what actually protects your loved ones.
So… Is Life Insurance Worth It?
If no one depends on you financially then it might not be urgent. It might not be an immediate concern and it will change if there is any change. If your income supports others, life insurance is absolutely worth it. If your absence would create stress, consider life insurance. If you simply want to plan responsibly, then life insurance is a wise choice.
Let me make it clear. It is not because something bad will happen, but if it does, your family won’t face it alone.
Key Takeaways
- Life insurance is about protecting people, not predicting death
- It’s often more affordable and accessible when you’re younger
- Workplace coverage is helpful but usually limited
- Real value shows up when the unexpected happens
- Honesty on your application is essential for claims to be paid
A Final Thought
You don’t need to rush into buying life insurance. And you definitely don’t need to buy more than makes sense for your life.
However, it is worth asking yourself one simple question. If something happened to me tomorrow, would the people I love be financially okay?
If the answer is “I am not sure,” spend some time to find the right answer. Make yourself aware to get it right.
And when you do explore coverage, take a moment to be completely honest on your application. Not for the insurer’s sake, but for the people you are trying to protect.
That honesty is what makes life insurance truly worth it.