5 signs your family might be under-insured (and how to fix it)

We often meet families who think they’re fully covered – only to discover that their insurance no longer fits their life. That’s not because they’ve done anything wrong. Life changes, and sometimes, your coverage doesn’t keep up.

Here’s the truth: being under-insured doesn’t always mean having no insurance. It often means having the wrong kind, or not enough of the right kind. And if that sounds familiar, you’re not alone.

According to a 2024 study from the Life Insurance Marketing and Research Association (LIMRA), only 69% of Canadians have life insurance coverage that actually meets their needs.¹ That leaves a significant number of families with potential gaps – sometimes without even realizing it.

Below are five common signs your family might be under-insured, and how to get back on track. 

1. You haven’t reviewed your insurance in more than 3 years

Life moves fast. In just a few years, you might have bought a home, changed jobs, had a baby, or started a business. Each of those milestones affects your insurance needs.

If your coverage hasn’t been reviewed recently, there’s a good chance it no longer reflects your current life or financial goals. Outdated coverage might leave gaps – or worse, give you a false sense of security. 

2. You only have group life insurance through work

Many Canadians rely on group benefits from their employer. And while group coverage is a great starting point, it’s often not enough.

Group policies are usually limited in how much coverage you can get. And they may not stay with you if you change jobs or retire. If your family is counting on that insurance, that’s a big risk.

This is one reason why so many Canadians are under-insured, even if they technically “have insurance.” If your only policy is through work, it’s worth taking a second look. 

3. You don’t have any critical illness or disability insurance

Most people think of life insurance as the only kind of protection they need. But what if you get sick or injured and can’t work for months – or even years?

Disability and critical illness can happen to anyone. But when it comes to having coverage, the numbers are eye-opening: 

• Less than one-third of Canadians have disability insurance 
• Just under 6% have critical illness insurance² 
   

That means millions of people could face financial hardship during recovery. Disability insurance helps replace income if you’re unable to work due to injury or illness, while critical illness insurance provides a tax-free lump sum if you're diagnosed with a serious condition like cancer, stroke, or heart disease.

These policies help protect your income – your family’s biggest financial resource – and offer peace of mind when you need it most. 

4. You’re not sure what your policies actually cover

If you’ve ever said, “I think I have something, but I’m not really sure what it does,” you’re not alone. Many people have old policies they bought years ago that they don’t fully understand.

You might be under-insured if: 

• You don’t know how much coverage you have 
• You’re unclear on who the beneficiary is 
• You don’t know when your coverage expires (if it’s term insurance) 
   

If that sounds familiar, don’t worry – it's more common than you think. The important thing is to get clarity. 

5. Your debt or expenses have gone up, but your insurance hasn’t

Did you buy a new home? Take on a bigger mortgage? Or maybe daycare, tuition, or living costs have increased?

If your coverage amount hasn’t changed to reflect your current expenses, your family might not have enough support if something happens to you. As your lifestyle grows, so should your protection. 

Why this matters – and how we can help

Not having insurance, or having the wrong kind, can put your financial future at risk. It’s not just about replacing income or covering final expenses. It’s about making sure your family can stay in their home, your children can continue their education, and your goals stay intact – even if life doesn’t go as planned.

That’s why having a comprehensive risk management strategy is so important. It’s the foundation for protecting your income, your future, and the people you love.

We don’t believe in one-size-fits-all coverage. We offer personalized, honest advice, without pressure or complicated jargon.

The first thing we do when we start working with you is an insurance audit, which is a no-obligation review of your current coverage. We’ll: 

• Help you understand what you already have 
• Identify any gaps or unnecessary overlap 
• Recommend tailored protection options, if needed 
   

Whether you’re looking to protect your income, your home, or your family’s future, we’ll guide you through your options so you can make confident, informed decisions. Our goal is to help you feel clear and prepared – not confused or overwhelmed.

Because confidence and clarity doesn’t come from a product. It comes from a plan. Ready to see if your coverage still fits your life? Let’s get started. 

Sources

Nearly one-third of Canadian adults report living with a life insurance coverage gap. June 11, 2024. LIMRA. https://www.limra.com/en/newsroom/industry-trends/2024/nearly-one-third-of-canadian-adults-report-living-with-a-life-insurance-coverage-gap/.  

Critical illness and disability insurance in Canada. September 29, 2023. MoneySense. https://www.moneysense.ca/save/critical-illness-and-disability-insurance-in-canada/.