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Is group life insurance policy enough for the average Canadian?

Life insurance is an important element of family financial planning. Every family breadwinner or even a housewife must be insured. In case a family loses any of its members, insurance coverage should allow the family to keep their normal life, pay off mortgage and educate children, Advisor's Edge reports.
Is group life insurance policy enough for the average Canadian?

When starting a new job, you can get group insurance in the first 30 days of work without passing medical tests. If you leave a job where you have had group insurance, you have 30 days to continue this insurance individually in the same insurance company without passing medical tests.

The majority of Canadians with life insurance (according to a recent survey, 62%) receive coverage through a workplace group benefit plan. The same study has found that group plans typically insure only one to two times an employee's annual income, which is between $55,000 and $110,000.

A life insurance contract is a unilateral contract. The insurance company undertakes to pay your heirs the insurance benefit upon the occurrence of insured event (death of the insured). It cannot terminate this contract unless it expires or you stop paying.

Based on the individual's personal situation, a large insurance coverage may be more appropriate. Besides, spouses and children may not be covered by the group plan, which leaves a gap in the family’s risk protection strategy. However, it is up to employer to increase the insurance coverage, for example, increasing life insurance benefits or adding a spouse, leaves employees vulnerable as they typically cannot take their group coverage with them if they change employers.

A person feels protected with such a benefit from the employer. However, it is important to make that everyone has adequate insurance in case of unexpected events that life sometimes throws at us.

Source: https://www.advisor.ca/partner-content_/expert-advice_/is-group-life-insurance-enough/

Photos are from open sources.

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