Life is constantly changing, and so are your financial needs. Whether you’re starting a family, buying a home, or planning for retirement, your life insurance policy should reflect your current situation. Fortunately, many life insurance policies allow for adjustments to ensure you have the right coverage at every stage of life. You might find yourself asking: Can I adjust my life insurance? Here’s what you need to know about updating your policy in Ontario.
Increasing or Decreasing Coverage
One of the most common ways to adjust a life insurance policy is by increasing or decreasing your coverage amount. If you experience a major life event, such as having a child or taking on a large mortgage, you may want to increase your coverage to provide additional financial protection. Many insurers allow policyholders to apply for additional coverage, though this often requires a medical exam.
On the other hand, if your financial responsibilities have decreased—perhaps your children have grown up and become financially independent, or you’ve paid off your mortgage—you might consider lowering your coverage. Reducing your death benefit can lower your premiums and free up money for other financial goals. Keep in mind that decreasing your coverage might require you to contact your insurer to review policy adjustments.
Converting Term Life to Permanent Life Insurance
If you have a term life insurance policy, you may have the option to convert it into a permanent life insurance policy. Term life insurance provides coverage for a set period (e.g., 10, 20, or 30 years), whereas permanent life insurance lasts a lifetime and includes a cash value component.
Many term policies in Canada include a conversion feature that allows you to switch to permanent coverage without undergoing a medical exam. This can be a good option if your health has changed and you want to secure lifetime coverage. It can also be beneficial for estate planning, as permanent policies often build cash value that can be used later in life.
Adding Riders for More Protection
Life insurance riders are additional features that you can add to your policy to customize coverage. Some common riders available in Ontario include:
- Critical Illness Rider – Provides a lump-sum payment if you’re diagnosed with a serious illness covered under the policy.
- Disability Waiver of Premium Rider – Waives your premiums if you become disabled and are unable to work.
- Child Term Rider – Provides coverage for your children under your policy.
Adding riders can enhance your policy’s benefits and ensure more comprehensive protection for you and your family.
Reviewing Your Policy Regularly
Life insurance is not a “set it and forget it” product. It’s a good idea to review your policy at least once every few years or whenever a major life event occurs. If you’re unsure whether your current coverage meets your needs, speaking with an insurance advisor can help you understand your options and make necessary adjustments.
Can You Adjust Your Life Insurance? Get in Touch with Us
Your life insurance policy should evolve alongside your life. Whether you need to increase coverage, convert a term policy, or add riders, adjusting your policy ensures you’re adequately protected. If you’re considering changes to your policy, contact your insurer or a licensed insurance advisor in Ontario to explore your options and make informed decisions. Contact us. 1-866-848-8836