How to Talk About Life Insurance with Your Family

Talking about life insurance can feel uncomfortable, but it’s one of the most caring steps you can take to protect your loved ones. Whether you’re reviewing your coverage or buying your first policy, having an open conversation helps your family understand how life insurance supports their financial security when it matters most.

Many Canadians put off this discussion, unsure how to begin or who to talk to about life insurance. Starting the conversation early ensures your family knows your wishes, understands your policy, and can easily manage it in the future. In this article, you’ll learn practical ways to talk about life insurance, how to explain your life insurance policy clearly, and how to help your loved ones feel confident about the protection life insurance provides

Key takeways

• Talking about life insurance helps protect your loved ones by ensuring they understand your coverage and wishes.

• Starting the conversation early gives your family confidence and clarity when it comes time to manage your policy.

• Keep your discussion simple by focusing on why life insurance matters, who your beneficiaries are, and how life insurance claims work.

• Your life insurance beneficiary or beneficiaries will need to access key information to make a claim against your life insurance policy and claim the death benefit. Bring key details like your advisor’s contact information and policy documents to the conversation.

Why it’s important to talk about life insurance

Life insurance is one of the simplest ways to protect your family financially. It helps your loved ones manage day-to-day expenses, pay off debts, and maintain stability after you’re gone.

By discussing your life insurance plans, you:

• Reduce confusion about policy details and beneficiaries

• Give your family peace of mind about their future

• Make it easier for loved ones to access benefits when needed

• Ensure your intentions are clearly understood and documented

How to start a conversation about life insurance

Many people see finances and insurance as private topics, but talking about them helps avoid stress later. Keep the discussion relaxed and focused on care, not numbers.

1. Pick the right time and place

Choose a calm, distraction-free setting. Avoid emotional or stressful moments.

2. Explain why life insurance matters

Start with the reason behind your decision: protecting your loved ones, supporting your family’s lifestyle, or helping with future expenses.

3. Share the essentials of your life insurance policy

Cover key points about your life insurance policy like:

• What type of life insurance policy you have (term, whole life, or family life insurance)

• Who your beneficiaries are

• How to contact your insurance advisor

4. Be open and patient

Encourage questions and offer to follow up if something needs clarification. An RBC Insurance Advisor can also help your family understand your policy details and provide guidance on how life insurance works.

How to talk to your family about life insurance

Many people view their finances (including life insurance and estate information) as private subjects not to be discussed openly, even with loved ones. About four in 10 Canadians over the age of 55 say they’re not comfortable having open conversations with their families, but there are benefits to sharing your estate plans (including tax protection and maximizing the value of your loved ones’ inheritance).

Begin by keeping the conversation simple and straightforward. Maintain a focus on the topic at hand, sharing the necessary details such as which provider you’ve chosen for your policy and the name of your insurance and/or financial advisor.

Avoid getting “lost in the weeds” with information that could feel like too much. For example, it’s important for your beneficiaries to know that a life insurance policy payout isn’t taxed, but it isn’t as critical for them to understand the current dividend scale interest rate tied to the policy.

Tips for talking to your family about life insurance

Here are some ways to start the conversation with your family:

• Reference an article you’ve read about the importance of open communication in estate planning.

• Kick off the conversation with a question. For example: “Do you have investment or savings goals in mind for the money I’ve set aside for you in my will?”

• Start with an explanation of why it’s important to you to know your family will be taken care of in the future and then list the steps you’ve taken to ensure they are.

• Reference current events and explain how they’ve motivated you to thoroughly organize your estate.

Enter this discussion with an abundance of patience and sensitivity, and prepare ahead of time, so you have the information (such as policy numbers) at your fingertips. Be ready not only to speak, but also to listen.

Talk about the beneficiary or beneficiaries of the life insurance policy

This may be the first conversation some of your loved ones have had about your estate planning and life insurance policies, and so you may need to explain some of the central terms and how they fit into the larger picture.

For example, what is a life insurance beneficiary or beneficiaries? In relation to life insurance, a beneficiary is the person (or people, organization, or charity ) chosen to receive the policy death benefit. People often choose to have more than one beneficiary, and there are a few different types of beneficiaries as well. A primary beneficiary is the first in line to receive the death benefit; however, you might also want to name a contingent or secondary beneficiary (especially if your primary beneficiary is just one person). In the event that your primary beneficiary passes away before you do, the death benefit will be paid out to the contingent beneficiary or beneficiaries.

Talking to your family about who your beneficiaries are (whether that’s your spouse/partner, your children and grandchildren, or a charity that’s meaningful to you) will help them to understand your plans, reasoning, and intentions for this part of your estate.

Having a conversation today will greatly reduce the possibility of unpleasant or confusing surprises in the future.

What happens to your life insurance policy after you die?

If you’ve named a life insurance beneficiary or beneficiaries and equipped them with the information they need, the process of making a claim on your life insurance policy should be straightforward when you pass away. Once the claim is made, the process of paying out the death benefit can begin.

To make a claim, your beneficiary will need:

• Your policy number

• A copy of your death certificate

• A completed claim form

The time it takes for a life insurance policy death benefit to be paid out can vary. In Canada, beneficiaries can typically wait between 30 and 60 days, but under certain circumstances, payouts could take less or more time.

Advise your family on who is helping you with your estate

In addition to your insurance advisor (who can step in to assist your beneficiaries in making their claim), you may have other estate planning professionals helping to guide you. Their name, role, and contact details should be shared with your beneficiaries.

Other professionals to include are:

• Your lawyer, who will know and understand the content of your will, including your estate plan and other legal details.

• Your financial advisor, who may be able to support your beneficiary or beneficiaries in deciding where and how to invest the death benefit they receive.

• Your accountant, who can inform your beneficiary or beneficiaries of the tax implications and cost of transferring your estate.

If you have any additional professionals who are currently working with you to help manage your estate, it’s wise to include their information as well.

Share a copy of your life insurance policy

Conversations about estate planning can be tricky to navigate. They involve a lot of emotion and a lot of information—the kind that may be unfamiliar to you and your loved ones. A reference document containing key contact information and instructions regarding your estate will be a valuable reference tool to leave for them. Your beneficiaries will also need a copy of your life insurance policy on hand when it’s time to make their claim, and it may also be helpful for your family to have a copy to review at their own pace, when they feel ready.

An RBC Insurance Advisor can help you protect your loved ones with the right life insurance coverage. Connect with us today to learn how. Find an advisor near you to get started.

Frequently asked questions (FAQs) about life insurance conversations

How to start a conversation about life insurance?

Begin with why life insurance matters to you — protecting your family, paying off debts, or securing future goals. Keep your tone calm and reassuring. Explain that your goal is to make sure your loved ones are financially protected, not to discuss sensitive financial details.

How to talk to parents about life insurance?

When speaking to parents about life insurance, approach the topic with empathy and respect. Ask open-ended questions like, “Have you thought about what kind of coverage would best protect you and the family?” Offer to help them review their options with an Insurance Advisor who can guide them through the process without pressure.

What does life insurance do for my family?

Life insurance provides financial protection for your loved ones if you pass away. It helps replace lost income, cover household bills, pay for education, and reduce financial stress during a difficult time. A life insurance policy ensures your dependents are supported and can maintain financial stability long-term.

What is the best way to explain life insurance?

Explain life insurance in simple terms: it’s a way to protect your loved ones financially if you pass away. The policy pays a lump-sum benefit, known as a death benefit, to your chosen beneficiaries. This money can help them cover living expenses, debts, and other essential costs.

Is it okay to share life insurance policy with friends?

It’s best to keep your life insurance policy details private. You don’t need to share information like payout amounts, beneficiary names, or policy numbers with friends. Those details should only be shared with your beneficiaries, insurance advisor, lawyer, or trusted family members who may need to help manage your estate.

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