For many Canadians, a life insurance policy ensures loved ones are financially protected if we pass away suddenly. When planning, especially for life insurance, leaving nothing to chance is crucial.

When starting a new job, it is common to review the dental and vision coverage, but many will overlook employer-provided life insurance, which is usually part of the group benefit plan.

We often overlook this coverage because, let’s be honest, it's not a common experience like dental visits or trips to the pharmacy. Yet, reviewing your company's life insurance is vital to ensure it meets your families’ financial needs. Remember, it's for your loved ones, not just for you.

Here are 8 reasons why you should consider upgrading your insurance policy today to prepare for tomorrow.

1. A life insurance policy's death benefit provides cash for final expenses and estate costs, preventing financial burdens for your family. It can be used to cover expenses such as funeral and estate/inheritance taxes, securing your legacy.

2. Many people will continue to work part or full time after retirement age to support themselves. A life insurance policy can be used to replace that income at their death, providing financial security for those who depend on them.

3. Life insurance can be used to replace either a portion or the entirety of your spouse's pension benefits. In the event of your spouse's passing, you might lose eligibility for their Social Security or full retirement benefits. A life insurance policy's death benefit can step in to substitute these diminished or lost benefits.

4. A life insurance policy can be used to clear outstanding mortgages or pay off other debts. While the idea of entering retirement without any debt is appealing, many individuals will still have financial obligations, such as a mortgage. Life insurance proceeds provide a reliable and secure method to assist your family in settling any debts you may carry during your retirement years.

5. Responsibilities and financial obligations do not fade when retirement begins. In today's world, many retirees still have loved ones relying on them, whether it be a spouse, children, or elderly parents. Life insurance remains an excellent avenue to safeguard and support the well-being of those you care about.

6. Life insurance can play a role in creating or preserving a legacy. Assets passed on to heirs and tax-deferred annuities, which may carry an associated income tax liability, can potentially be safe guarded, and enhanced through the use of life insurance benefits.

7. Your employer sponsored group life insurance, included in your employment benefits, might come to an end when you retire. An individual life insurance policy can replace that lost coverage upon retirement. When you retire, switch careers, or become self-employed, you may no longer have access to that coverage. Premiums are likely to increase as you age and if you develop any health-related issues. It's advisable to secure an individual life insurance policy now to ensure that you maintain adequate life insurance in your post-retirement years.

8. You can enhance your retirement income by utilizing policy withdrawals or loans. Typically, employer-sponsored retirement plans are designed to replace a portion of your pre-retirement earnings. A permanent life insurance policy provides access to cash value within the policy during retirement, allowing you to use these use funds in a variety of ways, such as launch a business venture, explore a hobby, handle unforeseen emergencies, or supplement your retirement income.

We always recommend speaking to your benefits advisor to get the process started. They can help pinpoint your needs, identify the right type of policy and shop around for the best rates.

If you do not have an advisor, you can book a free consultation with one of our trusted advisors today.

For more information about Beneplan, or to obtain a quote for employee group benefits, please visit our website. The Beneplan Co-Operative is the only employee group benefits company in Canada that pays back unused premiums to clients each year. Find out how you can start saving today by going to www.beneplan.ca