Comments on: How $18 a Month Could Protect Your Family’s Finances

By: Jeffery Romansky

Jeffery Romansky — Tue, 29 Jan 2019 16:45:35 +0000

Good article Barry! I agree, term life insurance is often more affordable than most think.

Barry, you mentioned Simplified Coverage. As an expert, I am not a fan of simplified coverage and I like my clients going through the medical questions. As an example, the RBC Simplified Application asks if you ever had a treatment/medical advice/known indication of any condition affecting the central nervous system. Most would be quick to answer “no” to this question.

However, if you look up the different types of central nervous system disorders, you will find that migraines are a listed disorder. This means that one who has migraines in the past should answer “yes”. Don’t think I need to go into the risks of accidental non-disclosure.

RBC is a great company, one I often recommend. However, I will always recommend their traditional products first. Here is a blog post I wrote back in 2017 on this exact subject. https://secureplan.ca/the-hidden-risk-of-simplified-insurance/

By: SUSAN

SUSAN — Sat, 26 Jan 2019 16:58:42 +0000

Correct. It’s crazy how some financial experts get all crazy when suggesting insurance for children. They stick hard and fast to the “cover income” philosophy (unless of course they sell insurance – but that’s a whole other discussion).

No one wants to think of their child dying. But that is exactly what insurance is for – a financial safety net for the unimaginable. And it’s so inexpensive that I don’t even understand why it’s a debate for those people.
“Better to have it and not need it than need it and not have” it is my mantra. Works for everything from umbrellas to insurance.

By: Barry Choi

Barry Choi — Sat, 26 Jan 2019 16:52:46 +0000

In reply to SUSAN. Susan, I think the reason you stated makes sense to get life insurance for children. Another instance where life insurance for children may make sense is if there are health risks in the family bloodline. It would be easier to get insurance for the children early as opposed to them trying to get it in their adult years when their health may have changed.

By: SUSAN

SUSAN — Sat, 26 Jan 2019 16:16:32 +0000

At risk of wading into a big debate I also recommend life insurance on children for at least the amount of one years income for both parents. There is a common thought that you don’t get insurance on kids since they don’t make any money or if you do you just need enough to cover a funeral. However, having watched a friend lose her child, I know I’m not going back to work the next week. So the income that insurance on my child is covering MY income so that I can take whatever time I need to grieve. And the same for my spouse.
It’s a controversial topic in the world of insurance discussions but for the small amount of the premium, I say it’s money welll spent. And no, I’m not in the insurance business.

By: Barry Choi

Barry Choi — Mon, 21 Jan 2019 13:10:49 +0000

In reply to Michael Allen. Michael, I 100% agree with you. It seems like the industry has moved towards encouraging to get term which is a welcome change. That being said, there are certain situations where Universal Life may make more sense and I'm sure there are some insurance consultants out there who push whole life since it gives them a bigger commission.

By: Michael Allen

Michael Allen — Mon, 21 Jan 2019 12:52:38 +0000

When you do the math on Universal Life Insurance (what they used to call Whole Life Insurance back – way back – when I took my high school personal finance course) and calculate your returns on the investment component, you’ll find you’re better off buying Term Life, investing the difference in premiums yourself and cancelling your coverage once your house is paid off and you have enough savings to protect your dependants. My teacher was right then, and he’s right now.