Shopping around for life insurance

[GOnSHO]

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Have you ever met anyone who doesn't sell whole life but reccoemends it? It's really popular with the guys selling it because they get such great kickbacks

I have access to whole life policies and still dont recommend them to very many people, in a few cases, they are good.. but VERY FEW. There are MUCH better products available.

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Insurance companies typically invest your money in funds they own with very high management fees. Much worse than you would even pay on bank Mutual funds.

This is quite false actually.. most of my investments have an average MER of right around 2%..


Everyone in this thread is a little mistaken with what they are saying.

[Xtrema]

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I don't understand why you keep saying you won't see it again lol the option is there to cash out on what you put in if you keep the policy long enough (12+years)

Well because it's always better to keep it in there or so they will tell you.

I tried to help withdraw from my parents whole life because they got scammed into it by friend's kids. They don't know any better and there is legitimate concern when we were kids with unknown future. That took almost legal threats before they let us withdraw.

Insurance is the biggest scam in the world. Worse than taxes. Buy for whatever coverage you think you need, pay down your debt and invest the rest. If you have no liability, you don't need insurance.

[Boat]

Lot's of good detail in this thread.

I have a 500k 10 year policy - cost me about 23 per month. As said in this thread the only purpose should be to cover liabilities for your dependents. As soon as the house/condo is paid off I will not be renewing. I will probably have to renew again once more.

[Xtrema]

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Lot's of good detail in this thread.

I have a 500k 10 year policy - cost me about 23 per month. As said in this thread the only purpose should be to cover liabilities for your dependents. As soon as the house/condo is paid off I will not be renewing. I will probably have to renew again once more.

That's term, and that's the way to go.

[pga]

Anyone here can recommend a life insurance broker?

[GOnSHO]

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Anyone here can recommend a life insurance broker?

PM'd

I am a licensed broker in Alberta and BC

[GOnSHO]

Hey guys,

Ive helped a couple people from here over the last cpl months because of this thread, so if anyone needs anything, quotes or anything, let me know!

[GOnSHO]

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Lot's of good detail in this thread.

I have a 500k 10 year policy - cost me about 23 per month. As said in this thread the only purpose should be to cover liabilities for your dependents. As soon as the house/condo is paid off I will not be renewing. I will probably have to renew again once more.

Just wanna put this out there, everytime you renew, the cost goes up pretty substantially, as you are older and mortality rates rise. If you were to instead move to a Term 20/30, no need to renew and your COI would stay level from when you got it, only being slightly more than your term10 cost. Message me if you want a quick quote on something a bit longer term or give you an idea what your renewal cost on your current policy would be.

Travis

[ExtraSlow]

Costs go up, but for most people the need for a large policy goes down. As kids get older, house gets partly paid off etc, he probably won't need a million bucks of coverage.

When I first got life insurance I had one kid in full time daycare and another on the way. I was very shortly looking at $3000/mo childcare costs alone. Plus needing to care for them for 18+ years. Not even ten years later and both kids are in school, and I have an RESP that will cover most of the university costs. I did some rough math and the amount I'd need is about half what it was back then.

[GOnSHO]

Which is fair, but you need to think about if you have significant other what would happen to them if your income wasnt around, nevermind for 1 year but 5-10 years. Can never have TOO much insurance, in the end if something happens, family is 100% protected. A 500k t20 policy is only like 40-50/mth, more if you smoke.. why pay 30-40 on a renewing t10, that youll pay 70-100 maybe 10 years later.

Add in that your insurability is never guaranteed. Could get diagnosed with something in year 5 of your term10.. and when you wanna renew they CAN jack your rates(rating) up or decline your renewal.

[ExtraSlow]

All good points to consider.

[GOnSHO]

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All good points to consider.

Definitely, like I said, i can give people quotes until im purple in the face, come over and explain different strategies. Im here to help anyone and everyone I possibly can.

[skandalouz_08]

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Which is fair, but you need to think about if you have significant other what would happen to them if your income wasnt around, nevermind for 1 year but 5-10 years. Can never have TOO much insurance, in the end if something happens, family is 100% protected. A 500k t20 policy is only like 40-50/mth, more if you smoke.. why pay 30-40 on a renewing t10, that youll pay 70-100 maybe 10 years later.

Add in that your insurability is never guaranteed. Could get diagnosed with something in year 5 of your term10.. and when you wanna renew they either jack your rates(rating) up or decline your renewal.

Not sure what company you're selling with but Sun Life gives you guaranteed insurability at renewal. So, even if you're diagnosed with something in year 5, you're still eligible for the same renewal rates you were originally quoted for at the time of application. They also allow you to reduce your coverage amount without going through any medical testing so after 10 years you can renew for another 10 years and reduce the coverage amount, which also reduces your premiums.

Full disclosure - I'm an advisor with Sun Life so that's how I know this.

[GOnSHO]

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Not sure what company you're selling with but Sun Life gives you guaranteed insurability at renewal. So, even if you're diagnosed with something in year 5, you're still eligible for the same renewal rates you were originally quoted for at the time of application. They also allow you to reduce your coverage amount without going through any medical testing so after 10 years you can renew for another 10 years and reduce the coverage amount, which also reduces your premiums.

Full disclosure - I'm an advisor with Sun Life so that's how I know this.

I am an independent broker.

All of what you are saying is true, most companies, abide by this, but not all. All of my partners do however.

As I said above, reducing coverage makes sense if all youre worried about is JUST debts/liabilities but doesnt take into account your SO or dependants quality of life.

[GOnSHO]

Thanks for all the messages guys!!

If anyone else needs a quote or some info, shoot me a PM with your number or email and ill contact you!

[suntan]

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I have access to whole life policies and still dont recommend them to very many people, in a few cases, they are good.. but VERY FEW. There are MUCH better products available.



This is quite false actually.. most of my investments have an average MER of right around 2%..


Everyone in this thread is a little mistaken with what they are saying.

lol. Maw104 mer is 0.94%. Vgro is 0.22%.

[GOnSHO]

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lol. Maw104 mer is 0.94%. Vgro is 0.22%.

LOL, those are both SELF managed funds & one is an ETF portfolio. AND they have a minimum investment amount.

A proper ACTIVELY Managed Mutual fund or Segregated fund, managed by a professional with designations on average is about 2-2.5%. Higher with more aggressive guarantees.

[suntan]

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LOL, those are both SELF managed funds & one is an ETF portfolio. AND they have a minimum investment amount.

A proper ACTIVELY Managed Mutual fund or Segregated fund, managed by a professional with designations on average is about 2-2.5%. Higher with more aggressive guarantees.

MAW104 is actively managed, ya moron.

What are you poor? Can't afford a min $5K investment?

[GOnSHO]

Says right on there its a Do it yourself fund, "managed" by the company, no manager/advisor, just the company. Im not saying its a bad fund, but a VAST majority of people do not want to or KNOW how to do this stuff themselves.

And no, im not poor? Way to turn a simple conversation into a D measuring contest.

SOME people cannot afford to put $5000 into something right off the bat I deal with companies who allow our clients to get into investing and saving for as little $50/mth, into the same funds people have to have $5k or more.

[bigbadboss101]

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MAW104 is actively managed, ya moron.

What are you poor? Can't afford a min $5K investment?

Man, no need to talk that way. Was looking at some Dynamic funds and they do have great performance, low MER, but minimum 10,000$ initial investment. Will talk to advisor about those. BUT, a bit off topic here.