#LifeInsurance #FinancialPlanning #Investing #DebtFree #SunLifeFinancial
Hey everyone! 👋 I need some advice on the impact of not having life insurance. I’m a 26-year-old healthy guy with investments in stocks and no debt. My dad is pushing for me to get whole life insurance, saying it’s necessary for protecting myself in the long run.
Here are my thoughts and questions:
– Should I really consider getting life insurance coverage?
– Is it true that not having life insurance can hurt my ability to borrow money?
– What are some other benefits or downsides to having life insurance?
I’m currently weighing the pros and cons, so any insights or personal experiences would be greatly appreciated! 🤔 Let’s discuss and help each other out!
I have never heard anything about it affecting one’s ability to borrow. Whole life insurance isn’t recommended for most people, look into term life and only if someone else is relying on your income, like children or spouse. Other than that I don’t see a need.
You have no one dependent on you so why do you need it? Most people consider getting term life when they start a family or have kids.
You get term life insurance when you have a house and/or dependents to help pay off assets/debts and maintain the same quality of life if you die unexpectedly.
You are better off continuing to max out your TFSA, FHSA, RRSP before you consider life insurance let alone getting a whole life insurance policy.
I have never heard of any insurance impacting your ability to borrow. life insurance isn’t worth considering (generally) unless you have family or a partner that relies on your income.
When looking at insurance, you need to look at the benefits for you in the event you receive a payout- what benefit does life insurance have for you?
Do you have any dependents ? if not there is no need for life insurance of any kind. When you get married/kids then get life insurance.
Do NOT get whole life insurance. Get Term insurance. Whole life tries to be both insurance and an investment vehicle. But you will do much better investing the money yourself. Term is what you need, and not even until you have people financially dependent upon you. Whole life is something that insurance agents push because it makes them money. Please do not listen to your dad in this instance.
no dependents = no need for life insurance
I’m in my 20s but I get it anyways through work. 300% of my salary so over 400k a year split between my parents.
If you have to pay out of your pocket then it depends on how much you are paying.
The only time you need life insurance is when you are married and have kids you will want them to be looked after in the event of your untimely death. Other wise you don’t need it. You want to look at term life only and consider getting it through your employer – the often provide 1 or 2 x your salary as a benefit and you can buy additional coverage through the same policy.
NO to WHOLE life insurance.
It is my understanding that TERM insurance is the way to go.
Also don’t buy any like insurance unless there is a reason to have money after you are dead – a mortgage, dependents
EDIT — mortgage insurance is also a scam. CBC Marketplace did a full report on how people with mortgage insurance through the bank are being ripped off. You can buy a term policy for the value of your mortgage instead of mortgage insurance through the bank.
Whole life can help you diversify your investment strategy and getting it now can protect your insurability if you become uninsurable due to an unexpected health issue later in life.
Is it needed for your ability to borrow. No
The people saying you don’t have any dependents so you don’t need it aren’t doing you any favours
I have never been asked about life insurance when applying for credit of any kind. I have personal line of credit. A mortgage and did have a car loan at one point. They mainly care about income and current debt.
Long term disability insurance through your job — have you looked into that?? It is different from life insurance.
no one needs your insurance payout (kid/spouse/mortgage), hold off til later.
your 26k probably covers a modest funeral worst case scenario.
AI has this parting summary (and thinks my reply above isn’t Grade A):
In summary, given your current financial situation and goals, it might not be necessary to invest in a whole life insurance policy right now. However, considering a term policy or other types of insurance might be a good step, especially if you anticipate needing coverage in the future. Consulting with a financial advisor can help you make the best decision for your circumstances.
did your dad get a new job “helping people achieve their financial dreams” with WFG lol
no to whole life ever and term insurance if you have dependents who rely on your income
Insurance is cover risk, so if you were to die today who’s impacted?
If you have kids then you want enough coverage to cover them if you’re not there.
I’ve never been asked to confirm life insurance for a loan or mortgage.
Anyway, the purpose of life insurance is to ensure your loved ones are taken care of if you die unexpectedly. If it makes sense for you, get it but it’s not required.
For example, I’m married, middle aged, no kids, no mortgage. Have about $550k in property value, $750,000 of assets outside of real estate. I don’t have life insurance, I don’t see the need given my situation. My spouse will get our condo and my other assets. Having some life cover isn’t needed.
Don’t listen to your dad. Whole life policies are generally a ripoff and unless you have minor dependants or a spouse or want some crazy ass funeral, I see no reason to even have life insurance.
Certainly no one that I have ever heard of has been denied a car loan or mortgage because they didn’t have a life insurance policy.
Your dad’s insurances salesmen thinking people should have insurance ranks right up there with other surprises like the sun rising in the east every morning.
If you are single with no dependants you only need to assure your debts and funeral are covered if you should die. At 26, life insurance may not be needed as you have good investments.
As a lender, I’ve never asked for I durance for approval purposes (sales, for sure).
Lots of advice saying no dependents = no need for life coverage. True, but if you have plans to have a family, I’d recommend considering it. It’ll never be cheaper than now and you don’t run the risk of something happening between now and then which could cause you approval issues. And if your family has a history of health issues, you may find the approval process easier now than later.
Do not buy from Sunlife ! They are tied agents that only sell Sunlife products that are typically over priced with no additional benefits. They will hound you to constant buy this or that.
Find a life broker to shop the market for the best policy with the best benefits if you choose to go forward.
Whole life – Empire life or Equitable life
No manulife – Sunlife or Canada life – they are all share holder owned – and there for the products are to benefit the share holders.
Empire and Equitable are still Mutual companies owned by the policy holders
It’s a scam for 90% of the population man
Where did he get this info from? Because that’s not the way it usually goes.
Life is insurance is recommended for when you have dependents. Lenders never ask about insurance.
I’m actually curious, where did he get this info from. I’m assuming the person that suckered him into getting the most expnsive(not term) life insurance.
Getting life insurance when you’re young is really easy and your premiums are very cheap. When you get life insurance when you’re older you might find out that you’re non-insurable due to a health issue.
I do not have any dependents but I do have life insurance and I have been paying for life insurance since I was in my early twenties.
I’m in my forties now and I am non-insurable due to a health issue if I waited to get life insurance until I had a dependent I would be out of luck or would be paying extremely high premiums.
If you own a property you should have life insurance, if you plan on dying and do not have a lot of money saved away you should have life insurance. All your stocks and investments will not be available for your surviving family members when you die. Your surviving family members will be responsible for paying for your funeral, and funerals are not cheap. Although life insurance doesn’t pay out immediately it’s going to pay out faster than getting your stocks and investments to pay out
Are you single? Do you have kids? Does anyone depend on you financially?
If the answer to all these is no: you don’t need life insurance.
Never have heard or been asked by banks. Your pops is trying to trick you.
I purchased life insurance at your age prior to having kids and owning property. When I had a spouse, kids, and home I purchased more. I’ve had family members and friends who had serious medical conditions even in their late twenties and early thirties and would have no longer qualified (or it was expensive) when they wanted life insurance. I personally feel it’s not a bad idea to get some type of insurance.
No insurance is needed.
Only picked up additional policy once I had kids.
Had a work policy was 2.5 x yearly salary, and never was asked for it when purchasing anything.
Your life insurance will go to who? Your 70 year old dad? He dont need that money. Keep saving. Max out everything then consider anything extra
Only buy insurance if you need it.
The complicated insurance investment products are confusing to hide how expensive or inflexible they are.
Buying life insurance as a healthy 26 year old would likely be quite affordable. Big picture? Could be worth it to buy now
If you have no dependents, I’d be more concerned about getting accidental death and dismemberment (AD&D) and critical illness (CI) insurance. These two pay YOU, life insurance pays your beneficiaries.
AD&D pays out if you lose your life (death), or limbs, sight, hearing (dismemberment). You may not care about the death part, but dismemberment, depending, can 1) cost a lot or take a lot of time to rehabilitate from and 2) can make it difficult or impossible to carry on your work, depending on what you do for work.
CI pays out if you become critically ill, but you’re not dead. How will you pay your bills if you get cancer and can’t work for several months? That’s what CI is for.