Is it possible to have too much life insurance in Alberta? Yes! Here’s some tips to see if you and your family are over-insured.
You have more than one disability policy
Having more than one disability insurance policy is not a bad thing, but you must be aware of the all source maximum. Across all policies (work, individual, government) you cannot collect more than (approximately) 75 per cent of your pre-disability income. If your policies total more than that, you have too much disability “top up” and are paying extra for insurance you cannot use.
You were given a “magic number”
If you were told by a broker or agent that you needed a certain dollar figure in insurance, and that agent did not sit down with you to discuss your income, assets, liabilities, present and future goals, then you may be over-insured. A full needs analysis takes time, but it determines how much insurance you need, and what risks you need to cover. Then the policy, and the premium, can be tailored to your needs and budget.
You are covering risks that are unlikely for you
In a perfect world, life insurance in Alberta would cover all possible risk factors, but that is neither affordable nor practical. If you need a critical illness policy, one that covers three conditions (heart attack, cancer, stroke) is more affordable than one that covers 10 or more conditions that may not be likely in your future.
Want a free evaluation to see if you have too much life insurance in Alberta?
Most households keep a close eye on their bottom line, and they should. Budgeting is important. You also know that life insurance is important for you and your family. If you are worried about having too much life insurance in Alberta, give me a call. I’ll do an honest evaluation of your coverage and perform a needs analysis.
I’m a broker, so I don’t have any products that I’m obligated to sell, but at the same time, I have access to all of the life insurance products in Canada. If I find a better path for you, you can work with me, or take the information to your current agent.
The important thing is that you are reassured about not being over-insured when it comes to life insurance in Alberta. Call 780-918-0848 or email email@example.com if being over-insured is a concern for you.