Quite simply, the answer is “no”. Being deployed is an opportunity to ensure you have enough coverage to provide for the financial needs of your loved ones in the event of your death. Without a doubt, you may face some additional risk upon deployment, but this additional risk does not mean you need to increase your life insurance coverage. Regardless of whether you are deployed, or you are driving your car from home to work, you have the same life insurance need.

Are your loved ones sufficiently protected financially? Do you have any important financial obligations? Unless you are financially independent, you need life insurance. It remains the only way to guarantee adequate protection for your family so that they can continue to live reasonably and fulfill their goals.

If you are single, without dependants, and without financial obligations (i.e. car loan, mortgage, etc.), you may only need a small amount of life insurance. Under the Canadian Forces Superannuation Act (CFSA), the Supplementary Death Benefits (SDB) automatically provides designated beneficiary(ies) with a lump sum death benefit equivalent to twice the salary of CF members of the Regular Force, and qualifying members of the Reserve Force on Class C service. Because you can also face the additional risk of an accident happening, especially under deployment, you may want to consider securing a minimum amount of life insurance.

Alternatively, if you are married with children at home you may be wondering if your family is sufficiently protected financially. Single or married you need to consider some of the following:

• Any financial obligations such as personal debts and mortgage;
• Income replacement needs for your surviving spouse and dependent children (including an emergency fund, additional child care expenses, special medical needs, education fund, etc.); and
• Additional expenses that would be created should you die (funeral expenses, medical bills, estate/probate fees, etc.).

The best way for you to determine your family's financial needs, is to consult with a licensed life insurance representative, who will analyze your life insurance needs according to your life insurance requirements. Only when you and your insurance representative complete the needs analysis, will you truly be able to determine the amount of life insurance you and your family require.

Fiona Haynes, Bsc, CD, CFP
Insurance Representative, SISIP Financial Services, Halifax

 

This article is for general information purposes only and is the opinion of the writer.