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We here at Life Insurance Inc. have organized Canadian bloggers as part of November being Financial Literacy month. In order to cut down on the noise and volume of data presented to consumers, we’ve challenged bloggers on November 15th to write their single best financial tip. And the bloggers have responded in droves – over 30 top financial sites are participating on November 15th by publishing a blog post.

We’d be remiss however if we just organized it and didn’t participate! So here’s our post on the most important financial tip for your life insurance policy:

The most important part of your life insurance policy is the death benefit – the amount of coverage. This attribute is more important than the company, the type of insurance, the premiums, the company rating, or anything else.

The reason is simple. Should you pass and the insurance company pays the benefit, your beneficiaries will care about nothing other than ‘do we have enough money?’. They won’t care about the company ratings, or insurance type, or anything else.

Putting this knowledge into action means that you should determine how much insurance you need, and err on the conservative side.

Next, if your quotes don’t come up within your budget, attempt to cut anything else before you cut the amount of insurance. For example, drop the type of coverage to a shorter term before dropping the amount of insurance – the wrong type and right amount to fit your budget is better than the right type and the wrong amount. Don’t get stuck on one company, shop around to make sure you’re getting the best premiums from the marketplace. Your coverage amount should only be lowered as a final resort when no other options are available.

So that’s it – the single most important part of your life insurance policy is the death benefit – make sure you have enough.

Wrongful or criminal deception intended to result in financial or personal gain.


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