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You can also ask for discounts, according to the Insurance Bureau of Canada: if you are mortgage-free, claims-free, or have upgraded your home against fire and flooding, you can likely get a better deal on your home insurance.

For drivers, installing a theft deterrent or a usage-based insurance app which tracks your driving habits can reduce your auto premiums. Keeping a clean driving record is also key, the bureau advises. Your broker or insurer can help find savings within your policy.

Non-mandatory insurance is a lesser-known game, however.聽

In terms of other valuable items worth protecting, there鈥檚 your health, your ability to work, and your life.

And young people are vastly underinsured, said Kenneth Doll, a Calgary-based financial planner with Wealth Architects and a life insurance consultant who offers fee-based advice.

鈥淚t鈥檚 like many things in life 鈥� there needs to be a trigger,鈥� he said. 鈥淭here needs to be an event that takes place that leads them to purchase insurance. It could be buying a house, having children, getting married.鈥�

Or sometimes there will be a tragic event that spurs them, said Rob T茅trault, head of the Tetrault Wealth Advisory Group at CG Wealth Management, in Winnipeg.

Perhaps a friend dies and their spouse is left without insurance, he pointed out, and a young family to support alone.

鈥淢ost people need a push in order to get insurance,鈥� T茅trault said. 鈥淎nd then they鈥檒l say, 鈥榃hat happens to my kids if that happened to me?鈥�

鈥淚nsurance doesn鈥檛 feel urgent, right? It鈥檚 just something that鈥檚 on the back burner, kind of like making a will. Until it鈥檚 too late, and then one day you鈥檙e not insurable.鈥�

The unfortunate part of young people being underinsured, he added, is that鈥檚 when insurance is the cheapest 鈥� premiums are based on age and health.

For life insurance, there鈥檚 term and permanent coverage, Doll said.

Term life insurance expires after a set time, making premiums more affordable. A common term is 20 years, Doll explained, which is usually purchased once someone is responsible for someone else 鈥� a spouse, or children. If an income-earner dies, the mortgage still needs to be paid, the children still need to be raised.

鈥淭he thinking is: after 20 years, the children will be somewhere around 20, and their mortgage will be close to paid off,鈥� Doll said. 鈥淪o at the end of the term, they may let [the policy] go. They may think, 鈥榃e made it through, nothing happened.鈥欌��

Renewing for another term is possible but more expensive since you are older, he said.

Permanent insurance lasts the rest of your life and is more costly. You can also structure your coverage with a bit of both, Doll said 鈥� buying a small permanent policy for $100,000 when you鈥檙e young and it鈥檚 cheaper, and then a term policy for $900,000 when you have kids.

Your coverage when you need it most 鈥� children are young, paying down the house 鈥� would total $1 million.

鈥淎s people go through the different stages of life, life insurance changes its purpose along with you,鈥� Doll said. 鈥淎s people approach retirement, permanent insurance becomes an important conversation because people want to have some insurance for the rest of their life.

鈥淚t鈥檚 also the most cost effective way to pay capital gains taxes upon death. So it becomes an estate planning tool after about age 55 or 60.鈥�

Disability insurance also replaces income if you are unable to work, while critical illness insurance provides a lump sum payment upfront if you become sick, T茅trault said. This lump sum can be used for flights, medical treatments, and breaks from work.

鈥淭hink of high-earning professionals 鈥� dentists, lawyers, doctors 鈥� they typically have [disability insurance] in place,鈥� T茅trault said. 鈥淚f they fall ill, or their back goes, then they鈥檒l have income replacement.鈥�

When a family member was diagnosed with cancer, T茅trault said critical illness insurance helped pay for flights to the Mayo Clinic for a second opinion, as well as treatments.

Financial professionals can advise clients on insurance needs, T茅trault said, noting that insurance is often part of a broader financial plan: 鈥渢o mitigate risk, to protect capital, to reduce taxes, to ease an estate transfer.鈥�

It鈥檚 worth talking to your partner about what life would look like if one person passed away or was unable to work.

鈥淚f it鈥檚 a complete disaster, and there鈥檚 no way you鈥檙e paying the mortgage, and you鈥檇 have to sell, or maybe you can鈥檛 even pay your rent 鈥� just have a conversation,鈥� T茅trault said. 鈥淚nsurance is usually very affordable at a young age.鈥�

Although some jobs offer life or disability insurance as part of their benefits, they are often not enough to replace income for many years, Doll said.

When asking people how big a lottery win would allow them to retire, Doll pointed out most people say $2 million or $3 million. But when talking about life insurance, they think $200,000 coverage or that workplace benefits is enough.

鈥淭he number should be the same as the lottery, because you鈥檙e dying, you鈥檙e not coming back,鈥� Doll said. 鈥淵ou鈥檙e not earning another penny.鈥�

This report by The Canadian Press was first published May 13, 2025.