The Insurance Review Most People Put Off: 5 Things to Check Before the Year Ends
A practical guide to reviewing your insurance, workplace benefits and personal coverage before another year begins.
Life gets busy. Between work, family commitments, running a business and everything else competing for your attention, reviewing your insurance probably isn't at the top of your to-do list.
Until something changes.
A new job, a growing family, a home purchase, a business expansion or a change in your health can all affect the type of protection you need. Yet it's easy to go years without looking closely at the policies and benefits you already have.
October is a good opportunity to change that.
With the end of the year approaching, taking some time to review your existing coverage can help you understand what protection you have, identify questions that need answers and determine whether your current arrangements still fit your circumstances.
You don't necessarily need to change anything. The first step is simply knowing where you stand.
Here are five areas worth reviewing before the year ends.
1. Review Your Life Insurance Against Your Current Circumstances
Life insurance is designed to provide a death benefit to the beneficiaries named in a policy, subject to its terms and conditions. Depending on the circumstances, that benefit may help loved ones manage expenses, replace lost household income, repay debts or cover other financial obligations.
The amount and type of coverage that makes sense for one person may be very different from what another person needs.
Think about what has changed since you last reviewed your policy. Have you purchased a home, welcomed a child, changed careers, started a business or taken on additional responsibilities? Has your household income changed, or has a financial obligation been paid off?
These changes don't automatically mean you need additional coverage. They are reasons to revisit the policy and consider whether it still aligns with your needs.
It's also worth understanding the difference between term and permanent life insurance. Term insurance generally provides coverage for a specified period, while permanent life insurance is designed to provide lifetime coverage as long as the policy remains in force and its requirements are met.
The details matter, so review your actual policy rather than relying on the product name alone.
Your next step: Locate your current policy, confirm the coverage amount and term, review the beneficiaries, and write down any questions you have.
Brightview Financial Services offers personal and family insurance solutions, including term and permanent life insurance.
Learn more: Personal & Family Insurance
For additional information, the Government of Canada provides a helpful overview of how life insurance works.
2. Understand What Your Workplace Benefits Actually Cover
If you receive benefits through your employer, you may already have access to coverage that plays an important role in your overall protection.
However, having a benefits plan and understanding that plan are two different things.
Depending on the coverage selected by your employer, a group benefits plan may include health and dental benefits and other forms of insurance or savings arrangements. Your specific coverage, reimbursement limits, eligibility requirements and exclusions will depend on the plan documents.
Start by finding your benefits booklet or logging into your provider's online portal. Check which services are covered, what limits apply, how to submit claims and when your coverage may change.
Pay particular attention to disability and life insurance. If these benefits are included in your workplace plan, understand the amount of coverage provided and any applicable conditions.
It's also worth asking what happens if you change jobs or become self-employed. Workplace coverage doesn't necessarily continue unchanged when your employment circumstances change.
For employers, this is an equally useful exercise. A benefits review can help you determine whether the current arrangement still fits your workforce and whether employees understand the coverage available to them.
Brightview works with employers on benefit solutions that include employee health and dental coverage, Healthcare Spending Accounts, Cost Plus Plans, Group RRSPs and Buy/Sell Coverage.
Your next step: Review your existing benefits before assuming you need separate coverage. If something is unclear, ask your plan administrator or benefits professional to explain the details.
Explore Brightview's Employer Benefits services.
3. Know How Your Income Would Be Protected If You Couldn't Work
It's an uncomfortable question, but an important one: what would happen if an illness or injury prevented you from working?
Disability insurance is designed to provide income replacement when an insured person meets the policy's definition of disability and other applicable requirements. The amount payable, waiting period, benefit period and conditions vary by policy.
Some employers provide disability coverage through workplace benefits. Individuals may also be able to obtain coverage through an insurance provider.
If you're employed, start by finding out whether your workplace plan includes short-term or long-term disability benefits. Check the amount payable, how long benefits can continue, when payments begin and whether other benefits could reduce the amount you receive.
If you're self-employed or own a business, consider how an extended absence could affect your household and business operations. Don't assume a personal disability policy will cover every business expense, because coverage depends on the policy you purchase.
The Canada Pension Plan may provide disability benefits to eligible contributors who meet its requirements, but eligibility is not automatic. It's important to understand the difference between government benefits, employer coverage and private insurance.
Your next step: Find out what coverage you already have before deciding whether additional protection is appropriate.
Brightview offers disability insurance through its Personal & Family Insurance services.
You can also review the Government of Canada's guide to disability insurance, which explains important policy details to consider.
4. Check Your Beneficiaries and Personal Information
Insurance reviews aren't only about coverage amounts. The administrative details matter, too.
A beneficiary is the person or entity designated to receive the applicable insurance benefit when the insured person dies, subject to the policy and relevant legal requirements. Beneficiaries may also be designated on certain registered accounts and other financial arrangements.
If you completed your paperwork years ago, it's worth checking that your designations still reflect your intentions.
Marriage, separation, divorce, the birth of a child or the death of a named beneficiary can all be reasons to revisit your records. However, the rules governing beneficiary changes vary by policy and jurisdiction. Some designations may be irrevocable, which can restrict your ability to change them without consent.
It's also sensible to check that your contact information is current and that you know where your policy documents are stored.
If you have minor children or a more complicated family or estate situation, consider getting appropriate legal advice before making changes.
Your next step: Make a list of your insurance policies and registered accounts, check the beneficiary information for each, and confirm the applicable process for updating it.
The Government of Canada's life insurance guide explains beneficiary designations and other important details.
5. Revisit Your Coverage When Your Life Changes
An annual review is useful, but you don't have to wait until October to revisit your insurance.
The more important trigger is a meaningful change in your circumstances.
Starting a business, purchasing a home, having a child, changing jobs or approaching retirement can all affect your insurance needs. The same applies when your existing obligations change or when you discover that your workplace benefits provide different coverage than you expected.
For business owners, personal protection and business protection may need to be considered separately.
For example, a business with multiple owners may need to address what happens if an owner dies or becomes seriously ill. A buy/sell agreement can outline how ownership interests may be handled in these circumstances, while appropriate insurance may provide funding for certain arrangements. The structure needs to be considered alongside the agreement, the business's ownership arrangements and the terms of the insurance policy.
Brightview offers Buy/Sell Coverage using life insurance and illness coverage as part of its employer benefits services.
For families, reviewing personal insurance alongside workplace benefits can help identify areas that need further attention.
For employees, understanding what is provided through work can help inform decisions about any additional coverage they may wish to explore.
The goal is not to accumulate policies simply for the sake of having them. It's to understand the risks you're addressing and the protection each arrangement provides.
Your next step: Write down any significant changes in your life or business over the past year. Use that list as the starting point for a conversation about your current coverage.
Visit Brightview Financial Services to learn more about the insurance and benefits services available.
An Insurance Review Doesn't Have to Be Complicated
You don't need to understand every insurance product before you start reviewing your coverage.
Begin with what you already have. Gather your policy documents, read through your workplace benefits information and make a note of anything you don't understand.
Then ask questions.
You may discover that your current arrangements still fit your needs. You may identify a detail that needs updating, a gap worth investigating or a policy term you want explained. Any changes should be considered carefully, because new coverage may require an application and approval, and existing policies should not be cancelled before replacement coverage is confirmed and understood.
An annual review is an opportunity to make informed decisions, not a requirement to purchase something new.
At Brightview Financial Services, the approach is educational and focused on helping individuals, families and businesses understand their insurance and investment options.
If you've been putting off reviewing your coverage, consider this your reminder to make a little time for it before the year ends.
Have questions about your personal insurance or workplace benefits?
Contact Brightview Financial Services to start the conversation.
Brightview Financial Services
4916 50th Avenue
Beaumont, Alberta
780-929-8734
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This article is for general educational purposes only and does not constitute personalized insurance, investment, legal or tax advice. Insurance coverage, eligibility, exclusions and benefits depend on the specific policy and individual circumstances. Consult the relevant policy documents and a qualified professional before making changes to your coverage.
