What should I consider before buying life insurance?

• Disclose health history completely — non-disclosure is a common reason claims are denied.
• Match the term length to the length of the obligation.
• Confirm conversion privileges if there is any chance the need becomes permanent.
• Understand the two-year contestability and suicide clauses.
• Premiums must remain affordable in a bad year, not just a good one.

Insurers assess age, medical history, family history, build, smoking or cannabis use, occupation, driving record, travel and hazardous activities. Some conditions result in a rating (higher premium) rather than a decline. Applying through an advisor with access to multiple carriers can matter where health history is complex.

Renewability and conversion terms, guaranteed versus adjustable premiums, exclusions, definitions used in any attached riders, and the claims process. A slightly cheaper policy with restrictive terms can be more expensive in outcome.

Decide who owns the policy, who pays, and who receives the benefit. For business needs, ownership should be set before issue. Keep designations current after marriage, separation, divorce or a beneficiary's death.

• Never cancel existing coverage before a new policy is issued and in force.
• Illustrations of permanent policies rely on non-guaranteed assumptions.
• Assuris provides limited protection if a member insurer fails; it is not a full guarantee.

• Life insurance — consumer guidance — Financial Consumer Agency of Canada
• Protection for Canadian life insurance policyholders — Assuris
• Life and health insurance in Canada — industry resources — CLHIA