Life insurance might not be the most exciting topic, but it’s a big piece of the financial puzzle for couples. Up in Canada, for example, over half of adults—57%, to be exact—have some kind of coverage. It’s all about making sure your loved ones don’t get stuck in a money mess if the worst happens. A lot of couples think they only need it if kids are in the picture, or they figure whatever their job provides is good enough. Spoiler: that’s not always true.

Figuring out how much life insurance you need can feel like a headache waiting to happen. Every couple’s got their own bills, dreams, and responsibilities. So, let’s break it down and figure out what’s right for you based on your income, debts, and what’s coming down the road.

Understanding the Purpose of Life Insurance

At its core, life insurance is like a financial safety net for the partner left behind. If one of you passes away, that policy can step in to cover everyday costs, knock out debts, or even keep bigger goals—like buying a house—on track. Without it, the surviving partner might be scrambling to keep up with the life you’ve built together.

It’s also a lifesaver for those unexpected hits, like funeral costs. Those final expenses can pile up fast, and no one wants to deal with that stress on top of everything else. Life insurance makes sure a tough moment doesn’t turn into a financial disaster.

Factors to Consider When Determining Coverage

First up: replacing income. If one of you brings home the bacon, the policy should cover enough to make up for those lost paychecks—think a few years’ worth, depending on your setup. How long exactly? That hinges on what the surviving partner can earn on their own.

Then there’s debt. Mortgages, car payments, student loans, credit cards—they don’t just vanish. A solid policy should wipe those out so the surviving partner isn’t drowning in bills.

Good news? Companies like North Cover can walk you through it all. The North Cover life insurance options are straightforward, flexible, and built to give your family what they need when it counts most.

Different Methods for Calculating Coverage

One easy trick is the multiplication rule—take your yearly income and multiply it by 10 or 15. It’s a quick way to get a ballpark figure, but it’s not perfect since it skips over the nitty-gritty of your actual finances.

For something more custom, try the DIME formula. It adds up your debt, income needs, mortgage balance, and any education costs (like for kids). It’s a bit more work, but you’ll end up with a number that fits your life like a glove.

Joint vs. Individual Policies: Which Is Better?

A joint policy covers both of you under one umbrella. It’s usually cheaper than two separate plans, which is a win for the wallet. The catch? It only pays out once, so if one partner outlives the other, they might be left with too little coverage.

Separate policies mean each of you gets your own plan, tailored to what you bring to the table. It costs more, sure, but it gives you wiggle room and peace of mind knowing you’re both fully covered.

Adjusting Coverage Over Time

Your life insurance needs aren’t set in stone. Buying a house, having a baby, or landing a big promotion can all shift the equation. Checking in on your policy every couple of years keeps it in line with where you’re at.

On the flip side, paying off the mortgage or retiring might mean you don’t need as much. Some plans let you dial the coverage up or down. Staying on top of it means you’re not overpaying—or underprotected.

Choosing the Right Type of Life Insurance

Term life insurance is like renting coverage—it lasts for a set time, say 10, 20, or 30 years. It’s lighter on the budget and perfect for covering the years when money’s tight, like raising kids or paying off a house.

Whole life insurance, though? That’s forever. Plus, it builds cash value you can tap into later. It’s pricier than term, but you get lifelong protection and a little extra financial perk on the side.

Final Thoughts

Life insurance isn’t just a box to check—it’s a lifeline for couples. How much you need depends on your income, debts, and what you want your future to look like. Nail those down, and you’ve got a plan that keeps the surviving partner steady.

Finding the right policy takes some digging. Look at where you’re at financially, revisit your coverage now and then, and maybe even chat with a financial advisor. They can help you sort through the options and land on what’s best for you two.