Life Insurance

[xxclaro]

Wanted to get your thoughts on life insurance. Wife and I were discussing it the other day because wd got an offer for it from CIBC. At first glance it looks ok, fairly cheap and decent payout, but reading the fine print one realizes its absolute crap. Basically,if you don't die in your sleep of natural causes, no money is paid out.

We would like to have something in place that, if something were to happen to one of us, the other would be fairly well taken care of. At least enough to cover the mortgage and other expenses, plus not having to work for a while. We are both still under 40, no health conditions, so hopefully this is all unnecessary but better to have it and not need it than vice versa.

Anybody here knowledgeable about this sort of thing and can steer me in the right direction? So much of insurance of all kinds seems designed to take your money, give you a sense of security and then weasel out of built in loopholes when its actually needed. I'd like to try to spend my money a little more wisely, if I can.

[Gunslinger257]

My wife and I have had similar experiences with life insurance and we basically just gave up and decided on a savings account instead. We now just put the same amount as the premiums would have been in our savings each month. It won't be much help in the near future but will get better and better with time and it won't be a total loss.

[sewerrat]

I have been with Combined insurance since 1986, I pay $115.00 every 6 months, never had a claim yet, but pretty good coverage. they do stop by every 6 months or so to collect and try to sell more insurances like cancer, room upgrade etc.

[pikergolf]

See an insurance broker. Tell the absolute truth on your application. I would be suspicious of anyone that would insure me without a medical. Do it right and then don't worry about it.

[Austin]

Call a few brokers for life insurance and never get mortgage insurance. Sometimes banks let to try talking you into these

[molly]

I've had life insurance for years. I recently switched into a new policy through a broker and ended up with another RBC policy designed to end when I am 73. The guy was great to deal with, the nurse was a hoot, and it is a good policy. I also signed with AMA for an accidental death policy as it was really cheap, so I figured why not. The Hublet will be all set if I kick it before he does!

And yes, do NOT buy mortgage insurance. Worst product ever. The only beneficiary is the mortgagor and the estate gets zilch. And your premiums stay the same even when the mortgage principal decreases.

[last minute]

Life insurance what a trip good luck

[titegroup]

Originally Posted by last minute

Life insurance what a trip good luck

They should really call it DEATH insurance, because that's really what it is, no-one gets nothing unless someone's dead, but it sounds better on paper, get enough for funeral expenses & call it a day, it's a necessary evil.

[sns2]

Originally Posted by titegroup

They should really call it DEATH insurance, because that's really what it is, no-one gets nothing unless someone's dead, but it sounds better on paper, get enough for funeral expenses & call it a day, it's a necessary evil.

I think if you are the man, you need to have enough that at whatever stage of life your family is at, they can kind of continue without having to go to work at Walmart. Kids need university and a downpayment on a house when they get married. Wife needs a mortgage paid off, and enough for her to clear her head before having to join the workforce in likely a greater way than she currently is.

Ladies, I never meant this to be sexist.

[Twisted Canuck]

Whatever you decide, just get straight up term insurance, don't get sucked into a whole life or universal policy. They are an evil rip off, anyone who says different is selling it. Best I found was through Costco, straight up term thru manulife, with group membership discount.

[Mr Rogi]

Try to find life insurance that does their underwriting up front. This means that they figure out if you qualify before you sign the contract. So if something happens to you they pay out no matter what. With back end underwriting after something happens to you they start looking for reasons not to pay out.

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[Twisted Canuck]

A good article on the topic:

https://momanddadmoney.com/why-whole...ad-investment/

[Phshrmn]

Call an agent someone you know uses. Buy only from a major company like sun life, great west, Manulife etc. Get good advice from a professional.

Permanent insurance (whole life) is the proper product for some people. I have it to protect my estate. Taxes matter and once you're dead, someone is going to pay.

Deal with professionals, not forum experts like me.

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[Twisted Canuck]

Originally Posted by Phshrmn

Call an agent someone you know uses. Buy only from a major company like sun life, great west, Manulife etc. Get good advice from a professional.

Permanent insurance (whole life) is the proper product for some people. I have it to protect my estate. Taxes matter and once you're dead, someone is going to pay.

Deal with professionals, not forum experts like me.

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For the record, I have in the past had my license for life insurance, and got out of the business because I liked to sleep at night. Whole life insurance is good for perhaps one percent of the population, and that one percent has an estate worth north of five million. Otherwise, he got conned by an 'expert' who gets rich off of commissions conning people into an expensive product that can be much better replaced with term insurance and a proper investment plan. And that is expert advice.

But don't take my word for it. The internet is saturated with articles saying virtually the same thing. A veritable plethora, as it were.

http://money.cnn.com/retirement/guid...ag/index10.htm

https://www.daveramsey.com/blog/the-...life-insurance

Myth: Cash value life insurance, like whole life, will help me retire wealthy .
Truth: Cash value life insurance is one of the worst financial products available.

http://www.nasdaq.com/article/when-i...ategy-cm625460

And so forth.

[bdub]

We went the route of term insurance and invested the difference between term and whole costs. Understand what you are buying and what the differences are. Whole life insurance and mutual funds, two of the greatest ways invented to separate the uneducated from their money.

[waterninja]

Originally Posted by Austin

Call a few brokers for life insurance and never get mortgage insurance. Sometimes banks let to try talking you into these

X2 on mortgage insurance. One of the biggest scams banks pull on thier customers. Talk to a real life ins. representative, and get ins. that doesn't change or get more expensive every time you change/ add/ or renew your mortgage.
I am handling my recently deceased parents estate right now, and I can say that Sun Life Ins. paid out promptly with no hoops to jump through, or complicated forms to file.
Only link in the estate chain that has been hassle free.

[jrowan]

I know how premiums are calculated. Studied it in uni. The insurance company is pretty much guaranteed to make money off of you most of the time no matter what type of policy you get. The important thing is to consider if you have what's called insurable interest.

Do you have kids? Are they already out of the house or will they have school to pay for? Does your wife work? Could your wife pay the mortgage payments with her current salary without a loss of quality of life?

All these questions should be answered in order to get a better idea of the amount of coverage you should get. There are a lot of different options out there, and you should understand how each works. The fine print on policies also needs to be read.

Unfortunately since you are older your premiums are going to be higher than any friends who signed up earlier in life for the same product. This is because you have essentially less time to pay the insurance company.

[sillyak]

Wife and I both have term life insurance. Enough that if I die the mortgage will be paid off and my daughter will have money for school. If my wife dies it's enough that I could work a lower paying job close to home and still get by comfortably. Premiums are very low.

We won't renew after term (daughter will be 23 at that time, mortgage paid off). I don't see the point to life insurance past that point, invest the money instead.

As for not paying out our contract only fails to pay out in the case of a medical condition not disclosed when we applied or if one of us commits suicide in the first two years.

[Okotokian]

Originally Posted by sewerrat

I have been with Combined insurance since 1986, I pay $115.00 every 6 months, never had a claim yet, .

On your life insurance? LOL That's good to hear.

[^v^Tinda wolf^v^]

Check out sunlife for coverage they are pretty decent and the coverage is thoural. Not that I ever would do that to my family or child but I'm even covered if I decide to blow my took off. Life is awesome

[Ken07AOVette]

Ours is through Servus credit union.
When the heart stops beating for whatever reason, they pay.
On paper documented and fact.

[lmtada]

Buy term insurance. invest the rest. After 50 you should not need insurance, unless you owe $$$, or for estate planning.
PB43

[350 mag]

Originally Posted by titegroup

They should really call it DEATH insurance, because that's really what it is, no-one gets nothing unless someone's dead, but it sounds better on paper, get enough for funeral expenses & call it a day, it's a necessary evil.

I have found that life insurance is usually $10/month/$100K.

Only a deadbeat would not leave his wife and kids $500k.

500 k is not a life changing amount of money but it will only cost you $50/month.....your family isn't worth a 24 of Beer/ month????

[Twisted Canuck]

Originally Posted by richardwilson2905

My dad had a cardiac arrest recently. After doing several tests and check-ups, the doctor told us that he has got blocks in his heart and needs to undergo bypass surgery. Since we did not have sufficient funds for the operation, we talked about the situation to our insurance agent from whom we took a life insurance plan. He was so accommodating in arranging the funds needed for the surgery. Finally, the doctor fixed a date for the operation, and it was successful. We were so thankful to him as he and his insurance company were very much willing to help us in such a situation. Is there anyone who has undergone a bypass surgery recently? Do share your experiences

Let's see.....first ever post....resurrect a 3 year old thread.....lack of understanding of Canada's medical system.....and a hot link to click on.

I guess there are no red flags there. Going to go click on the link now and if I don't make it back, tell mom I loved her......

[omega50]

Originally Posted by titegroup

They should really call it DEATH insurance, because that's really what it is, no-one gets nothing unless someone's dead, but it sounds better on paper, get enough for funeral expenses & call it a day, it's a necessary evil.

I was talking to a Rancher buddy a few years back about life insurance. He did not believe in life insurance. His comment on the subject made me laugh.

"Somebody is gonna put me in the ground. Either for the love of me, or the stink of me"

[Jerry D]

What is the reason the long term 1st to die and or after both die life insurance/investment policies are bad?

Is it because the money is beinf inested at a young age and locked in forever? Or is it lower interest rates or lack of flexibility?

Are there any positive tax reasons to do these?

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[Kingfisher8]

I wouldn't go with any life insurance that doesn't do their underwriting first before they approve your application. The insurance company should send a nurse to your place to take your blood pressure, vile of blood and urine. If you pass away the insurance company has no ammunition to deny your claim. If you get life insurance through a bank they ask you 20 generic questions and if you pass away they do their extensive underwriting. My father's life insurance got denied through TD because he said he didn't have any joint pain. My fathers medical report showed that he had one case of gout. I'm sure he was thinking of arthritis. Beware.

[midgetwaiter]

Originally Posted by BGS906

For a no nonsense , easy to understand explanation and quote for Life Insurance give Chris at ForeRunner Financial a call or message https://forerunnerfinancial.ca/ or access him through his facebook page.

Thanks anonymous person who I’m sure is absolutely NOT Chris at ForeRunner Financial!

[Pickle]

I need some help and direction with Life insurance but dont want to get into the specifics in the thread. Anyone with insight or advice please send me a PM> I am not here to sell anything just looking for advice and I cant fire PM's yet....

[Drewski Canuck]

Universal Life USED TO BE GOOD.

Then there was a change to Whole Life / Universal Life legislation that made it taxable on early payout of the investment portion.

Prior to the change, your policy acted like a TSFA for the investment portion.

Trick with Term Life is that if you have a health event, such as cancer, heart attack, asthma, etc, suddenly the renewal was so expensive that most could not renew for another term. If you do not have a health event that excludes you, the cost past age 55 is pretty high and keeps going up for subsequent terms as you continue to near winning the "bet".

Only thing Whole / Universal does is protect you if there is a medical condition that develops after the commencement of the term, as of course the term is until you die.

All Insurance is a one way bet, unless you die early. That is why you have 100 year old life insurance companies. They continued to make money on the insurance contracts they sell.

Drewski