Why Families Need a Will and Life Insurance in Canada
Introduction
When it comes to protecting your family, few topics are as important — or as commonly delayed — as creating a will and securing life insurance.
Many Canadian families assume these are separate decisions, or that they can be handled “later.” In reality, wills and life insurance work best together, each covering different risks and responsibilities.
This article explains why both matter, how they serve different purposes, and how they help protect the people you care about most.
What a Will Does
A will is a legal document that outlines your wishes after you pass away. In Canada, a properly prepared will can:
- Name guardians for minor children
- Specify how assets are distributed
- Appoint an executor to manage your estate
- Reduce delays, confusion, and family conflict
Without a will, provincial laws determine how your estate is handled — which may not reflect your intentions.
A will provides clarity and direction at a time when families need it most.
What a Will Does Not Do
While a will is essential, it does not solve every financial issue.
A will:
- Does not create money where none exists
- Does not replace lost income
- Does not pay off debts automatically
- Does not provide immediate cash to dependents
This is where life insurance plays a different — but complementary — role.
What Life Insurance Does
Life insurance provides financial protection if someone passes away unexpectedly.
For families, it is commonly used to help cover:
- Day-to-day living expenses
- Mortgage or rent
- Childcare and education costs
- Outstanding debts
- Time off work for a surviving parent
Life insurance is about continuity — helping a family maintain stability during a difficult transition.
Why Families Often Need Both
A will and life insurance address different risks:
- A will explains what should happen
- Life insurance helps make sure it’s financially possible
For example:
- A will may name a guardian for children
- Life insurance helps ensure that guardian has the resources to care for them
Together, they provide both instruction and support.
Common Situations Where This Matters
Many Canadian families benefit from having both when they:
- Have young or dependent children
- Own a home or have a mortgage
- Rely on one or two incomes
- Have shared financial responsibilities
- Want to reduce stress for surviving family members
Protection planning isn’t about predicting the worst — it’s about preparing responsibly.
Common Misunderstandings
“We’re young, we don’t need this yet”
Unexpected events don’t follow timelines. Planning early often provides more options and lower costs.
“We have savings, so we’re covered”
Savings can help, but they may not replace years of lost income or provide immediate liquidity.
“Life insurance replaces a will”
It doesn’t. Life insurance provides funds, but it doesn’t give legal instructions.
“A will replaces life insurance”
It doesn’t. A will can’t generate income or cash flow for dependents.
A Thoughtful, Balanced Approach
For most families, protection planning isn’t about extremes. It’s about:
- Understanding responsibilities
- Identifying risks
- Making reasonable preparations
- Reviewing plans as life changes
Both wills and life insurance should be revisited over time — especially after major life events like marriage, home ownership, or having children.
Final Thoughts
A will and life insurance are not about fear. They’re about care, clarity, and responsibility.
Having both in place helps ensure that your family is protected not just legally, but financially — and that your intentions are supported when it matters most.
Understanding the role each one plays is an important first step.