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How much life insurance do I need?

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Understanding how much life insurance you need

Canadians love life – and many of us are looking forward to living long ones. According to our research, the average age most of us want to live to is 88, and about a quarter of people want to make it past their 90th birthday!

Still, preparing for the worst doesn’t have to hurt your “glass half full” personality – or your wallet. That’s where life insurance can help. But how much coverage do you really need?

With North Cover Life Insurance, you can choose a coverage amount from $100,000 all the way up to $1.5 million (depending on your age). From your current financial obligations to future goals for your loved ones, understanding your needs will help you determine the right coverage amount to protect what matters most. So, let’s take a look at what to consider when determining how much life insurance you may need!

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What does life insurance cover?

Life insurance is designed to help provide your family with financial support when you’re no longer around. The payout can be used to cover funeral costs, mortgage payments, education, final expenses and other costs.

North Cover Life Insurance covers any cause of death, including accidental death. The only exceptions are terminal illness or death as a result of attempted suicide or suicide within 24 months of getting a policy.

All Canadian residents aged 18 to 70 (excluding Quebec) are eligible to apply for coverage. It’s a good thing too, since our poll found that almost three quarters of Canadians want to provide some financial support to their families after they pass away.

Plus, there are other advantages to taking out life insurance:

Advanced funeral payout

An advanced funeral payout gives your beneficiaries $15,000 (subject to approval) to help cover any immediate costs after you pass away.

Terminal illness benefit

Our terminal illness benefit means you can get your full benefit amount right away if you’re diagnosed with a terminal illness1.

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Calculating how much life insurance you need

How we live, dream, and spend is always different, so we understand your policy needs to work for you. There’s no magic answer for how much life insurance coverage you’ll need, but our team of Canadian-based licensed advisors are here to guide you through the application, making the process simple and easy. Here are some things to take into account to make the decision easier.

  • Your age and how long you need your coverage to last: If you’re on the younger side, the beneficiaries you designate (like a partner or sibling) may be as well, so you may want a higher coverage amount that can help support them for a number of years. A larger amount can go towards bills now, but also set them up financially for the future. If you’re closer to your golden years, you may be able to factor in less for your partner or dependents.
  • Who’s in your household: Are you flying solo, or do you have a dedicated co-pilot? Are your little ones just getting started or are they already out of the house? Think about who will need financial help most if life throws you a curveball. And remember, that includes yourself. Even if you don’t have a partner or dependents, a terminal illness benefit is a good way to take care of you.
  • Major costs you’d want covered: Even if you’re gone, the costs of mortgage repayments, maintenance, renovations and more stick around. If you have a couple of decades left on your mortgage, life insurance can help your household keep paying the bills or paying off other loans. The same goes for saving up for a treasured little one’s education.
  • How much is in your savings: If you’ve been as busy as a beaver and have savings under your belt that will already go to your loved ones, you may need less life insurance coverage. Keep in mind that accessing your estate can take time, so having money on hand quickly to pay for immediate costs can be a big help. North Cover Life Insurance, for example, offers a $15,000 advanced funeral benefit (subject to approval) to use towards end-of-life expenses, taking some financial weight off your loved one’s shoulders.

If you’re still unsure, don’t stress – our licensed advisors are just a phone call away and can help guide you on the best level of coverage for your needs. Take the guesswork out and allow us to put our thinking caps on to find the coverage amount that best suits you!

Who benefits from life insurance?

Plenty of people, including those in great health, can benefit from life insurance coverage. Here are just a few scenarios:

  • Living on your own: Life insurance can help cover personal debts and other payments that would otherwise come out of your estate. North Cover Life Insurance can also help you keep living independently without financial worry if you’re diagnosed with a terminal illness1.
  • Couples: Your partner can benefit from a life insurance payout by putting it towards mortgage or rent payments, so they can stay in the home you’ve created together with your family.
  • Households with young kids: Life insurance can help cover the essentials for growing kids, from food and clothing to education costs.
  • Empty nesters: Adult kids living independently will have money on hand from a life insurance payout. This can help with their own spending and set themselves up for the future.
  • Single parents: Life insurance coverage can help the person you appoint as a guardian to cover costs, so they can devote more energy to loving your nearest and dearest.

Seeing the benefits of life insurance? Let’s have a chat!

I’m single – do I really need life insurance?

If you’re a household of one, it can still be worthwhile considering how life insurance can benefit you. If you don’t have a spouse or dependents, life insurance can still be useful for a number of reasons:

  • It helps you right away if you’re diagnosed with a terminal illness. If you’re diagnosed with 12 months or less to live, you will receive your benefit amount upfront1.
  • It takes some financial burden off the people who will take care of your final wishes. Life insurance can help your friends and family cover thousands of dollars of costs they may not be expecting, like funeral costs and outstanding bills.
  • You can choose to help anyone you love. From a best friend to an extended family member, you get to choose who receives your life insurance benefit. You can designate up to five beneficiaries with a North Cover Life Insurance policy, so your payout will go towards people you care about most, even if they aren’t immediate family members.

Life insurance for seniors

Life insurance for seniors can be one of the best ways to plan ahead for yourself, with the added advantage of giving the important people in your life some financial security. They can use your life insurance payout towards end-of-life costs, including medical bills, a funeral or memorial and more. If you’re diagnosed with a terminal illness with 12 months or less to live, you’ll also get your full benefit right away1.

Having life insurance can make it easier to enjoy your retirement savings, without feeling like you need to save extra funds for your loved ones to use when you pass away.

North Cover also offers final expenses insurance designed specifically to help cover immediate costs when you pass away, like a funeral, burial, cremation or any outstanding bills. Canadian residents aged between 20 and 80 (excluding Quebec) are guaranteed acceptance, with coverage available from $3,000 to $25,000. Plus, there’s no medical or blood tests needed to apply! If that sounds more like what you’re looking for, you can get the details on North Cover Final Expenses Insurance here.

How much does life insurance cost per month?

Life insurance is a bit like the perfect poutine: a few key ingredients combine into something that’s well worth having. In North Cover’s case, we’re committed to ensuring coverage is accessible and affordable for Canadians as we understand the importance of protecting you and your loved one’s financial future. To support this, we offer flexible coverage amounts to suit any budget, putting you in control of your policy.

The best way to know how much you’ll pay is to get a quote from one of our licensed advisors. Get in touch with us and we’ll let you know how much you’ll pay each month (your premium), based on the coverage amount you need.

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Benefits of choosing North Cover Life Insurance

Made for Canadians

From the old souls to the young at heart, Canadian residents aged 18 to 70 (excluding Quebec) can count on assistance when it’s needed most.

Flexible coverage amounts

You may be eligible for between $100,000 and $1.5 million, depending on your age. The benefit can be used to cover costs like mortgage payments, education costs, final expenses – or simply leave it to your favourite folks as a financial cushion.

Pay less based on your lifestyle

Living a healthy lifestyle has rewards. You’ll pay lower premiums for being a non-smoker.

Advanced funeral payout

We may provide $15,000 (subject to approval) to pay for immediate costs, like a funeral. However you want your life celebrated, know you’ve done what you can to plan ahead and help take the financial pressure off those you leave behind.

Any cause of death covered

Natural death, accidental death, and terminal illness are all covered1. Take some of the worry out of your day-to-day knowing you’ve helped prepare for the unexpected.

Terminal illness benefit

Receive 100% of your benefit upfront if you’re diagnosed with a terminal illness with a life expectancy of 12 months or less1. Stress less and live more confidently knowing you’ve planned ahead.

Apply easily over the phone

We like making things simple. Get in touch with our licensed advisors to apply for coverage in just one phone call, with no medical or blood tests required.

Optional yearly cover increase

Every loonie counts. We automatically give you the option to increase your coverage amount by 5% on your policy’s anniversary to help cover changes to your lifestyle. You may contact us to opt out at any time.

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How to get covered

Ask for a quote

Get in touch with our team of licensed advisors who can provide you with a quote in minutes.

Select coverage

Tell us what amount you need and tailor your policy to what works for you. If you're unsure, our licensed advisors can help guide you.

Get covered

Protect your loved ones from your final expenses, including funeral costs.

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  1. Terminal illness diagnosis with a life expectancy of 12 months or less. Excludes terminal illness or death as a result of attempted suicide or suicide within 24 months of getting a policy.

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