The Short Answer
Most Canadian employer plans offer group life insurance—often one or two times your salary (sometimes more with optional buy-ups). That’s helpful, but it’s usually not portable when you leave the company, may not match your full income-replacement need, and you don’t control the beneficiary design the same way as with a personal policy. A personally owned term life policy is often the simplest way to plug the gap.
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Think of group coverage as a floor, not a ceiling. Your family’s full picture—mortgage, kids, debt, two incomes—should drive whether you need more.
How employer group life usually works
Premiums are often subsidized by the employer; you may see coverage as a multiple of salary or a flat amount. You might be able to add voluntary coverage during enrollment. Evidence of insurability may be waived up to certain limits—convenient, but the total amount still may fall short of what a financial planner would target for your household.
Common gaps
- Benefit caps — A few times salary may not equal 10× income plus debts, especially for families with young children.
- No ownership — You typically can’t assign policy terms or keep the same contract when you retire.
- Spouse and child riders — Often small add-ons, not a full replacement for a personal plan.
Pro tip
If you have optional group life buy-up, compare the cost per $1,000 of coverage to a portable term quote—especially if you’re healthy and might change employers in the next few years.
Changing jobs or getting laid off
Group life usually ends or shrinks when employment ends. Some plans offer conversion to an individual policy at higher rates; you may have a short window to decide. Personally owned coverage moves with you—no HR dependency. See also when to review your life insurance after a job change.
No obligation • Clear numbers
How to top up the right way
Start with your total need (debts + income replacement + goals), then subtract your employer’s death benefit and any existing personal policies. The remainder is often filled with term life for the years you need it most. You can layer permanent coverage later for estate or lifelong needs.
What to do next
Pull your latest benefits booklet, note your group life amount and any optional coverage, and list your mortgage and dependents. Then we’ll align employer coverage with a personal plan so you’re not underinsured on the day your job situation changes.
Want a clean comparison?
We’ll stack your employer plan against personal options—no jargon.
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