Strategies to Keep Your Coverage
Life circumstances change, and paying life insurance premiums may sometimes become difficult. However, cancelling your policy may not be your only option. Before making a decision, explore these nine strategies:
- Review your coverage: Check whether your current policy still meets your family’s needs.
- Explore policy options: Ask your insurer about flexible premiums or other features available under your contract.
- Consider cash value or policy loans: Eligible permanent policies may allow access to cash value, but loans and withdrawals can reduce benefits or create tax consequences.
- Explore conversion or replacement: Consider alternative coverage that fits your budget, and keep existing coverage until replacement insurance is confirmed in force.
- Ask about the grace period: If you miss a payment, contact your insurer promptly to find out how long you have to pay.
- Reduce your death benefit: If permitted, a lower coverage amount may reduce premiums.
- Review your budget: Identify possible savings while protecting essential household needs.
- Ask about reinstatement: If your policy has lapsed, you may be able to restore it subject to your insurer’s requirements.
Key message
Before cancelling your life insurance, contact your insurer or licensed insurance advisor to understand your options. The best decision balances affordable premiums with the financial protection your family needs.
References
- Financial Consumer Agency of Canada — Life Insurance
- Canadian Life and Health Insurance Association — Consumer Resources
- Financial Services Regulatory Authority of Ontario — Life and Health Insurance
Disclaimer: This information is for general financial education. Available options depend on your policy contract and insurer. Seek professional advice before changing or cancelling coverage
