Life insurance for today’s modern families

Modern families don’t all look the same – and neither do their insurance needs. Today, families are blended, chosen, multigenerational, LGBTQ+, and everything in between. These relationships are meaningful, but traditional financial systems weren’t always built with them in mind.

We believe protection should evolve as your life does. No matter what your family looks like, the right life insurance strategy can help you protect the people who matter most.

Blended families: Keeping everyone protected

Blended families often bring together children, stepchildren, and new partners. With this comes extra planning to make sure everyone is treated fairly.

One of the most important steps is reviewing beneficiary designations. Life insurance pays directly to the person you name, so if those names aren’t up to date, your benefits may not go where you intend. Regular reviews help your coverage stay aligned with your current relationships.

Some families also use trusts. A trust can provide income for a surviving spouse while still protecting assets for children from a previous relationship. This helps avoid accidental unfairness or someone being left out.

If you pay child support or alimony, a term policy can also be helpful. You can match the coverage amount and length of your term policy to those obligations, making sure they are covered even if you’re no longer here.

Chosen families: Protecting the people you rely on

Many people have strong family bonds that aren’t based on marriage or biology. Friends can play a central role in your life, yet they may not have automatic legal rights if something happens to you.

Life insurance gives you control. You can name anyone as your beneficiary as long as there’s an insurable interest. For chosen family, you may want to add written notes explaining your relationship and wishes. This isn’t required, but it can help reduce questions or challenges later.

Since beneficiary designations override wills, keeping these details accurate and up to date is essential, especially when your family structure doesn’t fit the traditional mold.

LGBTQ+ families: Addressing unique planning needs

Legal protections for LGBTQ+ families have improved, but gaps still exist. Life insurance can help strengthen financial security and reduce uncertainty.

First, make sure your beneficiary designations clearly reflect your wishes. This is especially important in places where certain partnerships may not be fully recognized.

Families with children may have added layers to consider. If one parent isn’t legally recognized, insurance proceeds can help cover legal costs to secure or maintain parental rights. This creates stability for the surviving parent and child during a difficult time.

Some LGBTQ+ clients may also benefit from working with an advisor who understands inclusive underwriting practices. Many insurers have updated their applications to be more inclusive of gender identity and relationship structures, and we can help guide you to the right options.

Tailored strategies for non-traditional families

Every family deserves protection that fits their needs. Here are a few strategies we often use to support modern family structures:

Laddering

Instead of relying on one policy, some families use several smaller policies with different beneficiaries and term lengths. This can help target specific goals – for example, protecting a spouse, supporting children from a previous relationship, or covering temporary needs.

Second-to-Die policies

These policies, also known as survivorship or last-to-die insurance, cover two people and pay out only after both have passed away. They can be useful for blended families who want to support each other during their lifetimes but leave a benefit for children once both parents are gone.

Trusts and legal protection

For families who worry about potential disputes or challenges, an irrevocable life insurance trust (ILIT) can help. The trust owns the policy and follows instructions you set, which can reduce the risk of conflict and ensure benefits are distributed exactly as intended.

Communication matters

The most important part of planning, especially for modern families, is clear communication. Talk openly with your partner, children, ex-partners, or anyone else involved. When people understand your goals, there is less room for misunderstanding later.

Keep your paperwork organized. Write down explanations for your decisions if your beneficiary choices might surprise someone. It’s also wise to review your policies after major life events like:

• Marriage or divorce
• Birth or adoption
• New partnerships
• Changes in guardianship
• Buying a home
• Significant shifts in financial responsibility
   

Modern families change, grow, and evolve, and your insurance should keep up.

Moving forward with confidence

No family fits a single template. Your insurance strategy shouldn’t either. When you work with us, we take the time to understand your relationships, responsibilities, and goals. Then we design a protection plan that fits your life today and adapts as it changes.

If you’d like help reviewing your current coverage or developing the right strategy for your modern family, we’re here to guide you – clearly, simply, and with your best interests at the centre.