It is an accepted fact. There are things in life that we have no control over. Death is one. If we envision a suicide, where, when, what and how the end of our lives are things we just do not have prior knowledge of or higher power. The same is true for accidents and illness. We do not know when they hit us. Of these three risks, however, death is more devastating than its effect on the future of our family is permanent.

Does this mean then that we are completely powerless against this eventuality? Not really. While we have no idea when death strikes us, there is something we can do to soften its blow. We can plan. We can ensure that if and when death comes, we are ready.

This essence is the life insurance is all about. This is our positive response to a negative risk. For this response to be effective, however, we must be sure it’s good.

In other words, our life insurance policy can not guarantee the future of our beneficiary to the extent we allow it. We must therefore ensure that we have a purchase that is well suited to our needs. More importantly, we need to understand the provisions of our policy.

It is the bitter lesson Barry Norman learned too late, as illustrated by the case of Avco Financial Services Realty Ltd. V. Norman, a decision of the Court of Appeal for Ontario.

Barry Norman and his wife Yvonne has obtained a mortgage for a second year of Avco in 1988 and made arrangements for coverage of life insurance as an addendum. His belief was, if anything happened to him or his wife, the policy would be regulation. Things went well at first. In 1989, the mortgage and insurance were renewed for another year, but in 1990, the wife of Norman is no longer qualified for insurance. She fell ill with cancer and died the following year. When the mortgage is in default Avco sued Barry Norman for payment of the loan. He counterclaimed for negligence, alleging Avco failed to inform him that the insurance has expired for each period of one year of the mortgage and must be renewed. The court ruled in favor of Avco. Barry Norman should have been informed of the details of the insurance when it renewed for another year.

The lesson here is clear. Do not buy a life insurance policy. Talk to a licensed professional and make sure you get a policy based on what you want and that you understand all its provisions. If you are a borrower’s mortgage, do not sign up for life insurance from your lender. This is not their main concern. If you worry about the mortgage, then get a higher level of coverage that will be able to cover both the mortgage and your family’s needs. Take your insurance policy. It is an aspect of your life you need to have more control.