Your Annual Insurance Checkup: What to Review Before the End of the Year
Life changes quietly over the course of a year. A new job, a larger mortgage or additional family responsibilities may gradually change what your household needs from insurance.
An annual insurance checkup is an opportunity to compare the protection you already have with your life today. It can help you understand how your policies work together and identify questions that deserve a closer look.
Before the year ends, set aside time to review your life insurance, disability and critical illness coverage, along with any related workplace benefits. Start with what has changed since your last review.
Life events that should trigger an insurance review
A major life event is a good reason to review your insurance sooner than your usual annual checkup. The Autorité des marchés financiers (AMF) notes that changes such as getting married or having children can affect whether existing coverage still meets your needs.
Events worth discussing with a licensed insurance advisor include:
- Marriage, a civil union or a change in your relationship
- Separation or divorce
- The birth or adoption of a child
- Taking on responsibility for an aging parent or another dependant
- Buying a home or taking on a larger mortgage
- Changing careers, becoming self-employed or approaching retirement
- Starting or expanding a business
- Changes to workplace benefits
Smaller changes matter too. Rising household expenses or a gradual shift in who depends on your support can be worth discussing during your review.
Your annual insurance review checklist
Use these ten questions to prepare for a conversation with a licensed insurance advisor. Make a note of anything you are unsure about so it can be checked against your actual policy documents.
1. Have your income, employment or debts changed?
Compare your current household income and monthly payments with your situation when the coverage was arranged.
A raise, reduced working hours, a new loan or a move to self-employment may change how much financial support your household would need if your income stopped.
Consider which expenses would continue and what other financial resources would be available.
2. Has your family grown or changed?
Think about the people who currently depend on you. This might include children, a partner, an aging parent or another family member.
Include unpaid caregiving and household work in the discussion. Your family may face additional expenses if that support needs to be replaced.
A review is also an opportunity to consider whether responsibilities have decreased as children become independent or family circumstances change.
3. Have you bought a home or taken on a larger mortgage?
Review your remaining mortgage balance, payment amount and repayment timeline.
If you have insurance connected to a loan, check what it covers, who would receive a payment and what conditions apply. Bring those documents to your review so the coverage can be considered alongside your other policies.
Renters can review how ongoing housing costs fit into their protection needs too.
4. Are your beneficiaries still appropriate?
Confirm the primary and alternate beneficiaries recorded with your insurer, including their names and any benefit shares. A family or relationship change is a reason to check these details. The Financial Consumer Agency of Canada recommends reviewing beneficiary designations periodically and updating them when necessary.
Quebec has specific beneficiary rules. Naming a married or civil union spouse as beneficiary in a life insurance contract generally creates an irrevocable designation unless otherwise specified. Ask your representative or a notary which rules apply to your situation, especially after a relationship change.
5. Have you started or expanded a business?
Business ownership can introduce responsibilities that deserve a separate discussion.
Make a list of business loans, ongoing expenses, personal guarantees and ownership changes. Ask whether your existing arrangements still reflect both your household and business responsibilities.
Some questions may need to be considered with your accountant or legal advisor, particularly when ownership agreements or business succession arrangements are involved.
6. Has your workplace coverage changed?
Obtain the latest benefits booklet and confirm the amounts, eligibility rules and benefits available to you and your dependants.
Ask what happens to coverage if you change jobs, reduce your hours or retire. Group life insurance often ends when participation in the employer’s plan ends. An option to convert to individual coverage may be available, subject to conditions and deadlines. Other employer-sponsored arrangements may work differently.
Your plan administrator can help confirm the rules that apply to your benefits.
7. Would your coverage still support your family’s obligations?
Consider the responsibilities your protection was intended to address:
- Mortgage or rent payments
- Everyday household expenses
- Childcare and education goals
- Outstanding debts
- Final expenses
Review these needs alongside existing benefits, savings and other available resources.
Also consider how an illness or injury could affect your finances while you are living. Disability and critical illness insurance serve different purposes and have different benefit conditions. Review the definitions, limitations and payment requirements in each contract.
8. Have your financial priorities changed?
Paying down debt, supporting a relative or preparing for retirement can change the questions you need to ask about your protection.
Check that premiums remain manageable. Note upcoming renewal dates, expiry dates and any conversion deadlines. Certain term life insurance policies may renew at a higher premium, so understanding the renewal provisions can help you plan ahead.
9. Are important policy documents easy to locate?
Keep current contracts, policy numbers, beneficiary confirmations and insurer contact details in a secure place.
Let a trusted person know how to locate the records when needed. If documents are stored digitally, consider how they could be accessed securely in an emergency.
Organizing this information now can make it easier for your family to find the right contact and understand the next steps.
10. Is it time to review the overall picture with a licensed advisor?
Bring your policies, workplace benefits information and a summary of your current responsibilities.
Ask the advisor to explain how the policies work together, any potential gaps or overlaps, the options available and the costs involved.
A useful review should leave you with a clearer understanding of what you have and which questions still need answers.
Before changing or replacing coverage
A completed review may show that your current coverage still fits. If a change is recommended, compare the existing and proposed contracts as well as the price.
Replacing coverage can involve a new assessment of your health, different terms or other consequences. In Quebec, representatives must follow specific requirements when replacing life or health insurance contracts, including the applicable Notice of Replacement.
Ask for an explanation of the advantages and disadvantages. Keep existing coverage in force until any replacement has been accepted, is in effect and you have reviewed its terms with your representative.
Make time for your annual insurance checkup
Begin by gathering your policy documents and noting what has changed over the past year. These details provide a practical starting point for a review.
Insurance needs can change as life changes. Taking time once a year to review your protection can help you understand whether it still reflects your family, financial responsibilities and long-term goals.
Request an insurance review with A.C.H Essentials. Visit achessentials.com to arrange a consultation.
This article provides general information and does not replace a personalized needs analysis. Coverage, eligibility and benefit payments depend on the terms of each contract and applicable rules.