Protecting What You’ve Built — and Who You Built It For

A Smarter Way to Think About Life Insurance

Most people don’t get life insurance wrong because they don’t care.
They get it wrong because they misunderstand what it’s actually meant to do.

Over the years I’ve seen families under-insured during periods where protection matters most — and others continuing to pay for coverage they no longer truly need. Both situations are more common than you’d think, and both are avoidable.

At our firm, we believe insurance should serve a very specific purpose: to mitigate risk and protect your family — nothing more, nothing less. The goal is not to be underinsured, but equally not to be over insured. We focus on allocating the appropriate dollars toward protection, while ensuring the rest of your resources continue to support your lifestyle, savings, and long-term investments.

Life insurance isn’t something you accumulate. It’s a precision tool: designed to protect your family while children are dependent, preserve what you’ve built, and in some cases create a legacy that can change generations.

Here are five misconceptions I see regularly — and how we approach them differently in the planning process.

1. “Group Insurance Is All I Need”

Employer-provided life insurance can be a helpful starting point — but in most cases, it is not enough.

Group coverage is typically limited and only remains in place while you’re employed. Even when conversion options exist, they often come at a higher cost later on.

In our planning process, we evaluate how your group coverage fits into your overall protection strategy. Sometimes it plays a supporting role. Sometimes additional personal coverage is needed. Our objective is not to replace coverage unnecessarily — it’s to ensure you have exactly what is required to protect your family’s standard of living, regardless of employment changes.

2. “I Have Plenty of Coverage”

The years when life insurance protection is most critical are typically when children are financially dependent.

During these years, coverage is designed primarily to replace income, eliminate debt, and ensure stability while your family adjusts. This is when the financial risk exposure is highest — and when appropriate protection matters most.

As children become independent and debt is reduced, the need for large income replacement coverage often decreases. However, that does not necessarily mean life insurance no longer has a role.

Later in life, the purpose of coverage may shift. For example:

• Estate tax planning: If there is a family cottage intended to remain in the family, capital gains tax at death can create a significant liability. If the estate does not have sufficient liquidity to cover that tax bill, insurance can provide the necessary funds without forcing the sale of the property
• Large estate exposure: In situations where there may be a substantial tax liability at death, insurance can protect accumulated savings from being eroded by taxes payable to the CRA.
• Legacy planning: Some clients plan to fully enjoy and spend their retirement savings without worrying about “preserving an inheritance.” Permanent insurance can allow you to spend confidently in retirement while still leaving a meaningful gift to your children or beneficiaries. 

In every case, we determine the appropriate level of coverage based on the specific risk being addressed — not based on generic assumptions.

3. “Term Insurance Is Always the Least Expensive Option”

Term insurance is often attractive because of its lower initial premiums. It can be very effective during the critical dependent years when income replacement needs are highest.

However, term insurance becomes significantly more expensive later in life, particularly if renewed. If there is an ongoing estate or legacy objective, relying solely on term coverage may not be efficient.

In our practice, we assess whether your need is temporary, permanent, or layered. Often, term insurance protects the high-risk dependent years, while permanent coverage addresses long-term estate or tax planning needs.

Again, the guiding principle remains balance: implement what is necessary — no more, no less.

4. “I Have a Policy, So I’m Done”

Life insurance is not a one-time decision. Your life evolves, and your protection strategy should evolve with it.

Marriage, divorce, children, career changes, debt reduction, asset growth, retirement — each stage can alter your insurance needs.

That’s why we build insurance into our regular review process. Approximately every three years, or whenever a major life change occurs, we reassess:

• Is the coverage still appropriate?
• Has the purpose of the coverage changed?
• Has risk decreased — allowing us to reduce coverage?
• Or has estate growth created new tax exposure?

Sometimes coverage increases. Sometimes it decreases. Both adjustments are equally important. Responsible planning means ensuring your protection evolves with your financial life.

5. “I Have Plenty of Time to Buy Life Insurance”

Premiums are directly tied to age and health. The younger and healthier you are, the more affordable coverage tends to be.

For young families, putting protection in place early secures lower costs during the years when insurance is most needed — while children are dependent.

For estate planning strategies, implementing coverage earlier can also significantly reduce long-term cost compared to waiting until later years when health changes may limit options.

At the same time, we remain mindful of overall financial priorities. Insurance is one component of a comprehensive plan — alongside lifestyle spending, retirement savings, and investing. The objective is not to direct every available dollar toward premiums, but to allocate responsibly across all areas of your financial life.

A Final Thought

At its heart, life insurance is not a financial product — it’s a promise.

It’s a promise that if the worst possible thing were to happen, your family would be protected. That they would have stability during an incredibly difficult time. That financial stress would not compound emotional loss.

And in other stages of life, it can become something equally meaningful — a gift. A way to preserve a family cottage. A way to offset taxes that would otherwise erode what you’ve built. Or simply a way to leave something behind that impacts your children and grandchildren in a lasting way.

For some families, that legacy becomes a turning point — an opportunity that changes the trajectory of future generations.

Life insurance should be viewed for what it truly is and the role it plays in your life. Sometimes it is protection. Sometimes it is preservation. Sometimes it is legacy.

When thoughtfully structured, it allows you to live fully, spend confidently, and plan intentionally — knowing that what matters most is safeguarded.

And ultimately, that peace of mind may be the most valuable gift of all.