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Old 05-23-2018, 10:30 AM
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Default Life insurance

I was wondering who the best life insurance providers may be? I have it now but it seems very expensive considering im young, non smoker non drinker etc.

Curious who everyone uses?
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Old 05-23-2018, 02:39 PM
2011laramie 2011laramie is offline
 
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Sunlife advisor hooked me up with life insurance
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Old 05-23-2018, 02:41 PM
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See an insurance broker to shop around.
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Old 05-23-2018, 05:36 PM
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If you are a Costco Member, it's pretty hard to beat the price of their term life policies through Manulife. When you say life insurance, you are talking term right, not those other evil products that rip you off, like Whole or Universal Life....?
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Last edited by Twisted Canuck; 05-23-2018 at 06:02 PM.
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Old 05-23-2018, 05:41 PM
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Originally Posted by Twisted Canuck View Post
If you are a Costco Member, it's pretty hard to beat the price of their term life policies through Manulife. When you say life insurance, you are talking term right, not those other evil products that rip you off, like Whole or Universal Life....


Yes term life is what I am looking at. I will check out costco to!
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Old 05-23-2018, 05:46 PM
2011laramie 2011laramie is offline
 
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Whats wrong with whole or universal life?
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Old 05-23-2018, 06:01 PM
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Originally Posted by 2011laramie View Post
Whats wrong with whole or universal life?
Lots. Do some research on the topic, and you will quickly find most financial advisors will recommend term insurance, and do your investing elsewhere. It's a bundled product, you are paying for an insurance component and and investment/saving component. It is notoriously bad returns, and you can only ever collect on one component.

I'm sure some salesman will show up shortly to extol the virtue of it though, because their commissions are obscenely bloated compared to term. It's why insurance companies are filthy profitable.

Here's a primer on the topic:

https://blog.wealthfront.com/whole-v...ce-investment/
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'...for a Nation to try and tax itself to prosperity, is like a man standing in a bucket and trying to lift himself by the handle.'. Winston Churchill

'You can accomplish a lot more with a kind word and a gun, than with a kind word alone.' Al Capone

"Slinte mhr agad!"

Last edited by Twisted Canuck; 05-23-2018 at 06:13 PM.
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Old 05-23-2018, 06:47 PM
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Lots.
That about sums it up.
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Old 05-23-2018, 06:49 PM
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I just went to a general broker and it seemed quite high, about $80/month. I then applied through my professional associated and it brought it down to about $50/month.
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Old 05-24-2018, 04:56 PM
georgiaboy georgiaboy is offline
 
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Whole Life policies if you read carefully- usually eat up any dividends in the later years by an ever increasing( cost of servicing the policy). Premiums stay the same cost of policy service continues to increase
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Old 05-24-2018, 05:49 PM
TROLLER TROLLER is offline
 
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Quote:
Originally Posted by Twisted Canuck View Post
Lots. Do some research on the topic, and you will quickly find most financial advisors will recommend term insurance, and do your investing elsewhere. It's a bundled product, you are paying for an insurance component and and investment/saving component. It is notoriously bad returns, and you can only ever collect on one component.

I'm sure some salesman will show up shortly to extol the virtue of it though, because their commissions are obscenely bloated compared to term. It's why insurance companies are filthy profitable.

Here's a primer on the topic:

https://blog.wealthfront.com/whole-v...ce-investment/
Sorry but I gotta call BS I bought permanent insurance in my 20\s and 30\s total around 60 bucks a month. I finally decided a few yrs ago that I did not really need the life ins. so I cased em out Close to 100K so I closed them a yr apart. If I had put the money in a mutual fund maybe would have done better but I needed the insurance and it turned out to be a great investment for me and my family.
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Old 05-24-2018, 06:08 PM
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Call BS all you want. The math has been done often enough. Your 'experience' is vague in the extreme, but glad you are happy with your return.
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'You can accomplish a lot more with a kind word and a gun, than with a kind word alone.' Al Capone

"Slinte mhr agad!"
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Old 05-24-2018, 06:13 PM
Albertacoyotecaller Albertacoyotecaller is offline
 
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They are really two different beasts. I run both. I just signed up again for a 10 year term policy for a large amount. Need that for the years I am earning lots to cover kids and wife in case something happens. Run a bit smaller whole life policy for later on or if I get denied my policy after 10years.

Go to an advisor and ask them to explain everything. There is a reason to run different stuff.
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Old 05-24-2018, 06:40 PM
Drewski Canuck Drewski Canuck is offline
 
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Default Tax Free Annuity lost:Universal Life

At one time, the annuity portion was tax free. Imagine another TFSA.

However, about 10 years ago The Feds saw too much money leaving the tax trough, and made T5s to be issued on all future policies. Old policies are left alone though.

As for investment, this is a funny beast, it is called a "Segregated Fund". What that means is that each week the profits are taken, and re invested next week. What ever you start with , you will only lose the change for the following week. In other words, the gains are basically protected.

"Seg Funds" operate like mutual funds, and can be managed for you or self directed to different funds operated by the Company. Your call.


Best I ever did was 24% annual return. Some years have been 1 % s some years 6 %, some years 15%.


Biggest truth is no Life Insurance is a good deal. You only collect when you die, and then it doesn't matter to you anyway.

However, Term gets VERY expensive past age 55, and can be refused right at the time of life when health issues create the most need.

Drewski
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Old 05-24-2018, 07:57 PM
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Don't forget....you only die once so don't be that guy who has life insurance on all big purchases etc....
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Old 05-24-2018, 08:33 PM
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Quote:
Originally Posted by Twisted Canuck View Post
Lots. Do some research on the topic, and you will quickly find most financial advisors will recommend term insurance, and do your investing elsewhere. It's a bundled product, you are paying for an insurance component and and investment/saving component. It is notoriously bad returns, and you can only ever collect on one component.

I'm sure some salesman will show up shortly to extol the virtue of it though, because their commissions are obscenely bloated compared to term. It's why insurance companies are filthy profitable.

Here's a primer on the topic:

https://blog.wealthfront.com/whole-v...ce-investment/
Ok TC. I will play along. Full disclosure - I'm in the business.

I deal in all...term, whole life, ulife, group. Lots of different factors that influence a recommendation. Amount required, time frame, tax rates, appetite for guarantees vs risk, etc. To provide a "cookie cutter" recommendation and say buy this and not that without knowing the entire situation is poor planning. Lots of cases where having some of both is an excellent fit. Go see a trusted advisor (or two, or three) and get their opinions. I believe you will get a vibe as to whether you are dealing with a planner that has your best interest at heart or a salesman selling a product.
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Old 05-24-2018, 08:48 PM
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It really makes no difference to me, what other people want to buy or not. I haven't sold insurance for over 20 years, my license is long expired, I don't get commission from anybody for giving an opinion. I only suggest people do their own research, educate themselves on what they are buying, do the math. Everybody has their own specific situation and requirements.

However, generally speaking, a young person looking for life insurance coverage to protect his/her family from the loss of income in the event of death, will 99% of the time be best served by buying term insurance, and investing elsewhere with the difference in premiums between a term product and a whole life/uni product. It's a simple math thing based on historic returns.

There is a reason why the commission on selling a whole/uni product is exponentially higher than selling term, and why most insurance people push those products. It isn't because it benefits the policy holder more.
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'...for a Nation to try and tax itself to prosperity, is like a man standing in a bucket and trying to lift himself by the handle.'. Winston Churchill

'You can accomplish a lot more with a kind word and a gun, than with a kind word alone.' Al Capone

"Slinte mhr agad!"
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Old 05-24-2018, 09:00 PM
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Quote:
Originally Posted by Twisted Canuck View Post
It really makes no difference to me, what other people want to buy or not. I haven't sold insurance for over 20 years, my license is long expired, I don't get commission from anybody for giving an opinion. I only suggest people do their own research, educate themselves on what they are buying, do the math. Everybody has their own specific situation and requirements.

However, generally speaking, a young person looking for life insurance coverage to protect his/her family from the loss of income in the event of death, will 99% of the time be best served by buying term insurance, and investing elsewhere with the difference in premiums between a term product and a whole life/uni product. It's a simple math thing based on historic returns.

There is a reason why the commission on selling a whole/uni product is exponentially higher than selling term, and why most insurance people push those products. It isn't because it benefits the policy holder more.
I will agree that in the majority of "young person" situations that term insurance tends to be the best starting point. 99%no, but majority.

Investing elsewhere with a difference? On what? GICs? funds? Stocks? How are these investments taxed assuming outside of a TFSA? While its plausible this fellow doesn't have his TFSA maxed, you don't know that, so I would suggest you've given a cookie cutter answer. 99% of the time? I don't agree with. Need to get all the facts.

I'm not sure what these commission rates were when you sold insurance 20 years ago, but I can tell you that they are the same on a percentage basis. Obviously the permanent solution comes with higher premium which will equate to a higher premium. However, I wouldn't sell a farmer the cheapest combine, but rather the right one for the job. If its more expensive and I've made a larger commission then I apologize.
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Old 05-24-2018, 09:07 PM
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No apology needed. You do your job to make a living, as do I. I got out of the industry because I hated every minute of it, but I don't have an issue with people who are in the industry. Insurance is a necessary evil in most cases, you need to have it to be protected from event X. As in everything in life, the buyer ought to educate themselves. That's all.
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'...for a Nation to try and tax itself to prosperity, is like a man standing in a bucket and trying to lift himself by the handle.'. Winston Churchill

'You can accomplish a lot more with a kind word and a gun, than with a kind word alone.' Al Capone

"Slinte mhr agad!"
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Old 05-24-2018, 09:11 PM
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Term life only and get when you are young & healthy. My sister's hubby had $175 k life. He quit paying the premiums & shortly after that died. My sister was so broke she had to get her older daughter to take care of her youngest. There is more of the story but either way he left a mess including debt. If you have a family and don't take term life unless you have lots saved up you can leave a real mess. He did. He had money to drink but quit paying insurance. What a loser!!!!
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Old 05-24-2018, 09:26 PM
Camdec Camdec is offline
 
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TC you are correct. Need to be educated. Hopefully by a someone that can give them good, honest education. I will say that permanent (whole life/universal life) does have its place, so I wouldn't discredit it until you know the entire situation.
Quite frankly, the best insurance policy is the one that is in place if something happens, regardless of the type. One could argue its a complete ripoff right up until you need it!
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Old 05-24-2018, 11:01 PM
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Quote:
Originally Posted by Twisted Canuck View Post
No apology needed. You do your job to make a living, as do I. I got out of the industry because I hated every minute of it, but I don't have an issue with people who are in the industry. Insurance is a necessary evil in most cases, you need to have it to be protected from event X. As in everything in life, the buyer ought to educate themselves. That's all.
Yup, an evil that you hope never is needed but like you mentioned the buyers need to educate themselves through life and as thier needs lesson, as in kids gone, home paid for they need to adjust accordingly lowering premiums etc...not hard to do but them again many are not smart enough to be financially dept free etc mid fifty so the evil keeps nipping them in the butt..
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Old 05-31-2018, 05:06 AM
conan conan is offline
 
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Quote:
Originally Posted by troutbug View Post
I was wondering who the best life insurance providers may be? I have it now but it seems very expensive considering im young, non smoker non drinker etc.

Curious who everyone uses?
PM Mike.W he is an insurance broker. He puts together group plans for companies and can answer any life questions.
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Old 05-31-2018, 10:34 AM
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I looked into the "investment" life insurance. After doing the math it made more sense to go for a 10 year term for me. I do my investing separate and have a decent ROI on that.

I find it funny talking to guys at work who are content with our work life ins policy. I think it pays out 75k. How long is that going to last a family that is used to 150k/year after paying for funeral expenses.

Also, mortgage/loan insurance. I'm no adviser but for me it worked out way better to increase my coverage on my term policy than it would be to have insurance on a mortgage and the wifes suv. Those rates don't drop no matter how much you pay off??
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Old 05-31-2018, 11:19 AM
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ReconWilly ReconWilly is offline
 
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Life insurance...what a scam!

I can't even just die in peace around here.

How does life insurance work in Syria and North Korea?
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Old 05-31-2018, 11:22 AM
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Twisted Canuck Twisted Canuck is offline
 
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Quote:
Originally Posted by buckbrush View Post
I looked into the "investment" life insurance. After doing the math it made more sense to go for a 10 year term for me. I do my investing separate and have a decent ROI on that.

I find it funny talking to guys at work who are content with our work life ins policy. I think it pays out 75k. How long is that going to last a family that is used to 150k/year after paying for funeral expenses.

Also, mortgage/loan insurance. I'm no adviser but for me it worked out way better to increase my coverage on my term policy than it would be to have insurance on a mortgage and the wifes suv. Those rates don't drop no matter how much you pay off??
Good point on mortgage and loan insurance! Premiums are usually high, and they don't go down even as you are paying off the mortgage/loan! How does that work?? The amount of my protection/coverage decreases monthly, but my premium stays the same? Good deal, I'll take two policies!

Yup, get enough term insurance to cover those payments as well, much cheaper, and your payout remains constant with the premium.
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