5 Common Mistakes Calgarians Make When Choosing Life Insurance

If you’re living in Calgary and thinking of buying life insurance, you’ll want to steer clear of the usual mistakes many people make. Getting it right means your loved ones can be protected and you can feel confident. Here are five common errors people make — and how you can avoid them.

1. Waiting too long to get coverage

Many people think: “I’m healthy now, I’ll wait until later.” But delays can cost more. In Calgary, younger applicants often qualify for lower premiums. The average coverage amount in Alberta is more, and younger age means lower cost.

Lifestyle changes — like smoking, new hobbies, or job risks — may raise costs later.

Tip: Evaluate your needs early — when you buy a home, start a family, or take on big debt. Lock in a policy while you’re healthy rather than waiting.

2. Choosing the wrong type of policy

Life insurance isn’t “one size fits all.” Many Calgarians pick a policy without matching it to their real need. Some options are term life, whole life, and universal life.
Common error:

• Buying permanent life when they only need protection until kids are grown or a mortgage is paid. 
• Choosing a short-term plan when they actually want lifelong coverage.

 Tip: Ask yourself how long you need protection, what your goals are, and whether you want to build cash value or just pure coverage.

3. Underestimating the total cost

It’s tempting to pick the cheapest monthly payment, but that can mean less coverage than you really need.

Mistake example: A Calgarian with a family and a mortgage chooses the lowest premium plan, but the coverage only covers half their total debt.

What to do:

• Calculate total needs (mortgage, education, daily living, debt).

• Review all costs, not just the monthly premium.

• Ask about riders, renewals, and long-term affordability

4. Not checking the insurer’s reputation and financial strength

Some buyers focus only on price and ignore who’s behind the policy. In Calgary, there are dozens of insurers, but not all offer equal claim service or financial stability.
Tip:

• Check customer reviews, claim settlement ratio, and company background.

• Choose a broker who knows the Calgary market and can explain regional cost factors.

• Ask about claim timelines and customer support quality.

5. Forgetting to review the policy

Many people buy life insurance and forget about it. But as life changes — job, marriage, children, or property — your coverage should too.

Example: Someone who bought a $200,000 policy ten years ago may now need double that to cover today’s expenses.

Tip: Review your plan every two to three years to ensure it still fits your goals and financial situation.

Why this matters in Calgary

Calgary’s average family of four spends (excluding rent), making it essential to plan for income replacement if something unexpected happens. With a younger population (average age ≈ 37) and high mortgage rates, life insurance gives families the security they need to maintain stability. The local market also offers plenty of options — which makes personalized guidance even more valuable.

About Karan Singh

Karan Singh is a trusted insurance advisor based in Calgary with years of experience helping families protect what matters most. Through Insurance by Karan Singh, he provides personalized guidance for life, travel, and super visa insurance. Karan focuses on simplifying complex terms, offering transparent advice, and finding affordable plans that truly fit each client’s life stage. His Calgary-based approach means he understands local challenges — from mortgage trends to family needs — and ensures every policy gives real protection, not just numbers on paper.

FAQs

Q1. What’s the difference between term and whole life insurance?
Term life covers you for a set period (like 10 or 20 years). Whole life lasts a lifetime and may include cash value. The term is usually cheaper, but life builds value over time.

Q2. How much coverage do I need in Calgary?
It depends on your income, dependents, debts, and goals. A good starting point is 10-15 times your annual income or enough to pay off all major liabilities plus family expenses.

Q3. Can I get life insurance if I have health issues?
Yes. Many insurers in Calgary offer coverage for people with pre-existing conditions, though premiums may be slightly higher. A broker like Karan Singh can help you find flexible options.

Q4. What if my health changes after I buy?
Most policies lock in your health rating at purchase, so later changes usually don’t affect it. It’s smart to get coverage while you’re healthy.

Q5. Do I need a broker or can I buy online?
You can buy direct, but a local broker gives you better insight, compares multiple insurers, and helps you review your plan as your life changes.

Final Words

Choosing the right life insurance in Calgary isn’t complicated — it just requires awareness. Avoid these five mistakes: waiting too long, picking the wrong type, underestimating costs, ignoring provider reliability, and failing to review your policy. With proper guidance from a trusted professional like Karan Singh, you can protect your family’s future with confidence.