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Personal Insurance > Insurance Advice Centre > Advice for Young Families on Insurance & Wills > Protect Your Family with Insurance > Life Insurance
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Purchasing life insurance is one of the most responsible decisions you can make to help ensure that your family can continue to enjoy the quality of life they deserve.
Life insurance pays a tax-free lump sum benefit upon death to your beneficiaries (such as your spouse and children)—helping to replace your lost income.
A common recommendation is that you purchase coverage equal to 8-10 times your salary. There are many ways your family could use the tax-free benefit payment. Since you have children, at minimum, you will probably want to purchase enough insurance to:
Tip: Beneficiaries named under your insurance policy will supersede beneficiaries named in your Will. Be cautious of naming your estate as the beneficiary under an insurance policy because the insurance proceeds will then be governed by your Will. The benefits will become taxable and there may not be as much left for your family as you had planned.
For even more tips and advice on life insurance, click here. Or, visit our Life Insurance site for additional details on your coverage options and to explore the benefits of choosing RBC Insurance®.