Expert guidance from Andrew Smith of The Co-operators
For many Canadians, life insurance is one of those topics that’s easy to put off and even easier to misunderstand. Between online misinformation and outdated advice, it’s no surprise that myths around life insurance still persist—from who needs it, to how much, to when it actually matters.
Andrew Smith, Financial Advisor and head of Andrew Smith Insurance Inc., a branch of The Co-operators, spends much of his time helping clients cut through the confusion. “There’s this perception that life insurance is only for older people or those with kids, but the reality is—it’s a smart move at every stage of life,” says Smith. “And it’s not just about death benefits. It’s about protecting your future and the people you care about.”
Myth #1: You only need life insurance if you have dependents.
This is one of the most common misconceptions, and Smith hears it often. “It’s true that protecting dependents is a major reason for life insurance, but not the only one,” he explains. “Even if you’re single with no kids, life insurance can help cover debts, funeral costs, and leave a financial legacy for loved ones or charitable causes. And the younger and healthier you are, the more affordable it is.”
For young adults just starting their careers, a basic term life policy can lock in low rates for decades. It’s also a strategic way to build long-term financial stability. “If you wait until you ‘need’ life insurance, it may already be more expensive—or harder to qualify for due to health issues,” Smith says.
Myth #2: Group coverage through work is enough.
Many people believe their employer-provided life insurance is sufficient, but Smith cautions against relying solely on it. “Most group policies offer a basic amount—maybe one or two times your salary. That’s not enough to cover a mortgage, debts, and lost income for your family if something were to happen,” he says. “Plus, it usually disappears if you leave your job.”
A personal policy ensures continuity, control, and coverage tailored to your specific needs. “We always recommend treating group insurance as a bonus—not your only plan,” Smith advises.
Myth #3: Life insurance is too expensive.
It’s a myth that stops people before they even ask for a quote. “Term insurance, which covers you for a set period—like 10, 20, or 30 years—is often more affordable than people assume,” says Smith. “We’ve helped young families get excellent coverage for the cost of a dinner out each month. It’s about peace of mind, not breaking the bank.”
Premiums vary based on age, health, and coverage amount, but with proper guidance, there’s usually a policy that fits every budget.
Myth #4: Older adults can’t benefit from life insurance.
While premiums increase with age, Smith notes that permanent life insurance—designed to last a lifetime—can still be a valuable part of estate planning. “We work with clients in their 50s and 60s who are looking to leave something for their kids or offset final expenses and taxes,” he explains. “There’s this idea that it’s too late, but it’s often not.”
Permanent policies can also offer additional value, such as cash accumulation or charitable giving benefits, depending on your goals.
Myth #5: Life insurance is a one-and-done decision.
“Your life changes—your policy should, too,” says Smith. He recommends reviewing your insurance every few years, or after major life events: getting married, buying a home, having kids, or starting a business. “We sit down with clients regularly to make sure their coverage still makes sense. What worked five years ago may not be enough today.”
Ultimately, life insurance is less about preparing for the worst and more about protecting the life you’re building. “It’s not just a product,” Smith says. “It’s a plan. A way to take care of the people and future you care about most.”
And while the details can seem complex, the right advisor will make it simple. “Our job is to walk you through your options, explain what fits your life, and make sure you feel confident in your plan,” he adds.
As Andrew Smith reminds clients, life insurance isn’t for the person who buys it—it’s for everyone who might depend on them. And that’s something worth getting right at every stage.
