# What Term Life Insurance fits for you?



## jmbagsy (Mar 14, 2017)

Hi everyone, it's me again, I've posted some recent threads recently and I'd like to thank all the great minds in here who gave their time replying to my posts.

So based on the threads I've posted recently, I realized it is term insurance I needed and not the UL. This new thread is about learning what kind of term insurance best fits my current situation.

I am a 29 year old with annual salary of 50k, with a 2 year old son and a wife with unstable job yet ( approximately 12k annually) and with a car loan of 22k. Saved up about 17k in RRSP (which we will use to buy our first house), and about 3k in TFSA. We are looking forward to buying a house (first time) as soon as possible.


Wondering if I should get a 40 or 60 term life insurance with 400k coverage for me?

Thinking of getting wife of just only 100k coverage thinking I can live with it if something happen to her God forbids.

Is it okay getting it from major banks like RBC, TD, BMO, since I don't know if I am safe getting it from private companies?


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## STech (Jun 7, 2016)

I've read that typically 10X your salary is recommended, but I think it's a little simplistic and doesn't work for everyone. I got 500K for myself, and 500K for my wife. And only 20 years. Here are my thoughts.


1) Term 20 (or 30) is enough. If you're 29 and get a term 60, that means you'll have insurance until age 89, which is pretty much like a universal life policy. No one should be counting on you until age 89, and no one should see your death as a windfall. You're gonna pay some big fees to have a policy that long.

2) I got a term 20, because I thought it was enough until my kids were old enough not to be a heavy burden on my wife. In those 20 years, the plan was to pay off the house, and build enough savings and investments that my wife would be comfortable, even if she decided not to remarry. 

3) Don't go light on your wife's insurance, because she makes less money. Think if your wife was to pass away, you'll be stuck with extra day care costs, driving the kids places, and not going to be able to work as much. I say get your wife the same amount as you. Don't discount how valuable her contribution is to raising the kid(s).

4) I've personally found the big banks to be competitive in absolutely nothing, and you can always find a good product at a better price, from another reputable insurance company. Find a good broker and have him/her shop around for you. I believe all insurance companies are required to be backed by a bigger insurance company anyways. Use an online broker, like www.kanetix.ca to get some ideas how much insurance costs. My policy for myself and the wife, 500K each, 20 year term, good health, non smokers, is $670 a year in Ontario.


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## jmbagsy (Mar 14, 2017)

STech said:


> I've read that typically 10X your salary is recommended, but I think it's a little simplistic and doesn't work for everyone. I got 500K for myself, and 500K for my wife. And only 20 years.


I did some reading too and found this same kind of info. Thanks




STech said:


> 1) Term 20 (or 30) is enough. If you're 29 and get a term 60, that means you'll have insurance until age 89, which is pretty much like a universal life policy. No one should be counting on you until age 89, and no one should see your death as a windfall. You're gonna pay some big fees to have a policy that long.


Makes sense. I didn't exactly understood what term 20 or term 60 means when i asked the question. I have another question, when you say term 20... does that mean a 20 year level term insurance which will be renewed automatically or it ends after 20 years and lets you decide if you want to do another term insurance?



STech said:


> 2) I got a term 20, because I thought it was enough until my kids were old enough not to be a heavy burden on my wife. In those 20 years, the plan was to pay off the house, and build enough savings and investments that my wife would be comfortable, even if she decided not to remarry.


I see what you did there, do u mind me asking how many kids do you have? 



STech said:


> 3) Don't go light on your wife's insurance, because she makes less money. Think if your wife was to pass away, you'll be stuck with extra day care costs, driving the kids places, and not going to be able to work as much. I say get your wife the same amount as you. Don't discount how valuable her contribution is to raising the kid(s).


Thanks for your insight. I'll take that into consideration.



STech said:


> 4) I've personally found the big banks to be competitive in absolutely nothing, and you can always find a good product at a better price, from another reputable insurance company. Find a good broker and have him/her shop around for you. I believe all insurance companies are required to be backed by a bigger insurance company anyways. Use an online broker, like www.kanetix.ca to get some ideas how much insurance costs. My policy for myself and the wife, 500K each, 20 year term, good health, non smokers, is $670 a year in Ontario.


The problem is I have trust issues regarding brokers... I will have a look on the website u provided. Some folks here suggested me term4sale.ca as reference. Do you have separate policy for you and your wife or do you have a joint policy?

Thank you for your insights. Appreciate it big time.


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## STech (Jun 7, 2016)

jmbagsy said:


> Makes sense. I didn't exactly understood what term 20 or term 60 means when i asked the question. I have another question, when you say term 20... does that mean a 20 year level term insurance which will be renewed automatically or it ends after 20 years and lets you decide if you want to do another term insurance?


I can cancel, renew, or extend the term at any point, but keep in mind, as you get older, the premiums get higher and higher. When you sign up for the 20 years, the rates are locked in for that term. Mine also offers the chance to convert it to a universal policy, or some sort of hybrid policy if I choose, but I haven't really researched it and I don't think I'll bother with it.






> I see what you did there, do u mind me asking how many kids do you have?


One for now, and planning on another.





> The problem is I have trust issues regarding brokers... I will have a look on the website u provided. Some folks here suggested me term4sale.ca as reference. Do you have separate policy for you and your wife or do you have a joint policy?


Find a broker that's recommended by family and friends. Or you could just call around different companies and compare their prices and policies. That's typically what I do for car and house insurance. However, with the life insurance, I found it a little more complicated, and I'm very happy I had the broker help me with the paperwork and process. We have separate policies, with the same company. I thought about getting a "first-to-die" policy, but it didn't make sense for us.



> Thank you for your insights. Appreciate it big time.


You're welcome. Ask away, this is important stuff to take care of your family. The other advice I can offer, is that if your employer offers life insurance at a small price, it might be worthwhile to add. However, don't get all your life insurance through work. You'll be OK while you work there, but in 15 years from now, you quit or get fired, you'll lose that insurance coverage, and when you go to buy on your own, it'll be much more expensive at that age.


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## carverman (Nov 8, 2010)

Not disputing other posters comments on this subject,but life insurance is a personal situation that varies from person to person.
Depending on age, term insurance has the cheapest premiums at the earliest age it is taken out.

Taking out $200-$400K term life at age 25, you will be paying the same premium for the term (20yr or 30 whatever)..however,
you don't want to be "over insured", if that is the correct wording to use here.

you have to sit down and determine:

1. what your insurance needs will be today, should a *calamity happen to you or your wife* or in the rare case BOTH of you.
2. What will be needed in insurance pauyouts to look after your children and mortgage and personal debts + funeral costs for one or both.
today a full service funeral can run $10k or more for each. Less for cremation ($2500 or so).

3. What will be your insurance needs at age 39, 10 years from now? How much do you anticipate your salary to increase 10 years from now?
Balance of mortgage, maintenance costs, car loans etc, child care (child will be 12?)

4.Now, what will be your insurance requirement 10 years later (at the end of the 20 year term life), when you will be 59?
Same as at age 30? 
Retired or still working? If still working at age 59/60, how much do you anticipate your salary to be at that point? (guesstimate).

Consider other investments you may hold at that point, and any credit card debt (and here you have to be honest..if you are carrying a monthly balance already on your credit card(s) now, chances are you may be still carrying some kind of balance at age 60.

*Age 65 retirement*; Children grown up on their own? or in college? if in college, consider college costs 20 years from now. $$$$

Lastly: *Always always go out for quotes once you determine what YOUR insurance needs are*, never trust the agent to do what will be
"right" for you now... or even 20 years from now. Only you can estimate that. 

There are plenty of independent agents/insurance companies on line...don't trust the banks, as they like to sell you insurance as a value added service because they get a commission.

Don't be hasty taking this term life or that term life. Take some time to consider which will be affordable for you now in case you lose your job or unable to work. You definitely don't want your term insurance to lapse because you
can't afford to make the monthly premium,...that is when you are most vulnerable, should an accident happen. 

Ok, Sure you can take out a million dollar policy..but that comes at a steep cost in monthly premiums. 

If you happen to live beyond age 80, you will pay out a LOT OF PREMIUMS by then,and most life insurance companies will be hesitant to continue because the probablilty of natural death is higher than accidental (or death from some life threatening disease is much higher)*after 80*. 
Most actuarial tables list a male non smoker up to age 79.


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## My Own Advisor (Sep 24, 2012)

Good for you to be thinking about this stuff....

FWIW:
http://www.myownadvisor.ca/how-to-get-the-best-term-life-insurance/

Now, how much?

It depends 

Like another comment, my wife and I decided $500k is "enough" each.

I came to this conclusion based on the following logic:
1. Money needed to cover all debt obligations (really only mortgage).
+
2. Money needed to help my wife get through any rough patch, time off work, other - if she wanted.
+
3. Money needed to replace my salary for a few years.

I went term. 

Think of life insurance as a risk management strategy, before you can self-insure. Something you do not pay premiums for, always for the rest of your life, but until you can self-insure later (i.e., there is no significant financial loss to your family in the event of your death - sad to think about for sure....)

Kanetix is another good source and there are many others.

Take your time though, take a few weeks to read and research well. Always read the fine print and don't sign anything until you understand it.


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## jmbagsy (Mar 14, 2017)

STech said:


> You're welcome. Ask away, this is important stuff to take care of your family. The other advice I can offer, is that if your employer offers life insurance at a small price, it might be worthwhile to add. However, don't get all your life insurance through work. You'll be OK while you work there, but in 15 years from now, you quit or get fired, you'll lose that insurance coverage, and when you go to buy on your own, it'll be much more expensive at that age.


It is a group insurance we have from our employer. Not much though, only 25k life insurance coverage. Im thinking of getting it from somewhere unless they would give me a big discount which I doubt would be the case.



STech said:


> We have separate policies, with the same company. I thought about getting a "first-to-die" policy, but it didn't make sense for us.


Wouldn't you be able to save more if u get a joint insurance instead of a separate one? Wasn't it a reason we get a term insurance so that just in case one of the parents die, the other is left with money to cover the expenses just like in the "first-to-die" policy.


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## jmbagsy (Mar 14, 2017)

My Own Advisor said:


> Good for you to be thinking about this stuff....


Yes, Im glad I've come to my senses to read and learn all this stuff.



My Own Advisor said:


> FWIW:
> http://www.myownadvisor.ca/how-to-get-the-best-term-life-insurance/


This is a very good site. Are you the moderator of this site as your name implies here? I've read a step by step DRIP/SPP strategy on this site it was very easy to understand and encouraging to try it out even for someone like me who has little knowledge about financial strategies. Lots of good stuff.

So base on this link you provided me, I should make sure that it should be on the fine print that my policy can be renewed and what premiums might be if i renew the policy.

Can i request to have a copy of the fine print from the broker and have it for several days to proofread it and sign it after im done understanding it? Can I do that?

I'd also like to ask if it would be best for me to get a term that could be changed to a permanent latter on if i decided to. I heard some companies only offers purely term life insurance.




My Own Advisor said:


> Take your time though, take a few weeks to read and research well. Always read the fine print and don't sign anything until you understand it.


I did some preliminary thinking about this and came to this.

So, currently, we have a 2 year old right now and planning to buy a house in between 2-4 years with a possible mortgage of $400,000 tops. We are planning on having 4 kids max. If all goes by the plan, we are planning to have another one in 2 years and another one every 2 years until we have 4. Im currently 29 years of age this year and thinking of getting a term 30 with 400,000 - 500,000 coverage. By the time the policy ends, I will be 59 and my youngest would be 24 y/o.
You (or anyone) think a term 30 with coverage 400k - 500k would be a good idea base on our plans?


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## jmbagsy (Mar 14, 2017)

carverman said:


> you have to sit down and determine:
> 
> 1. what your insurance needs will be today, should a *calamity happen to you or your wife* or in the rare case BOTH of you.
> 2. What will be needed in insurance pauyouts to look after your children and mortgage and personal debts + funeral costs for one or both.
> ...


Thanks for these helpful insights on how I should come up with what I really needed for a term life insurance right now. 



jmbagsy said:


> I did some preliminary thinking about this and came to this.
> 
> So, currently, we have a 2 year old right now and planning to buy a house in between 2-4 years with a possible mortgage of $400,000 tops. We are planning on having 4 kids max. If all goes by the plan, we are planning to have another one in 2 years and another one every 2 years until we have 4. Im currently 29 years of age this year and thinking of getting a term 30 with 400,000 - 500,000 coverage. By the time the policy ends, I will be 59 and my youngest would be 24 y/o.
> You (or anyone) think a term 30 with coverage 400k - 500k would be a good idea base on our plans?


Above is what I came up with. Your thoughts on this please.



carverman said:


> Consider other investments you may hold at that point, and any credit card debt (and here you have to be honest..if you are carrying a monthly balance already on your credit card(s) now, chances are you may be still carrying some kind of balance at age 60.


For now, (as I have little knowledge about investing) the only investment I have in mind is using the DRIP/SPP strategy. And I'd like to start it as soon as I get my life insurance in place. With regards to debts on credit cards, we are very diligent to paying the balances every month to start with 0 debt for next month. This is still easy for us to do as we don't have our own house yet and still live with my parents and pay them monthly for our stay here until we get a house of our own.


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## Beaver101 (Nov 14, 2011)

jmbagsy said:


> It is a group insurance we have from our employer. Not much though, only 25k life insurance coverage. Im thinking of getting it from somewhere unless they would give me a big discount which I doubt would be the case. ...


 ... ask your employer or check your group plan (employee benefits booklet) if they have an "optional/voluntary or additional coverage" (in mulitiples of your salary or unit amounts) available for employees to purchase. If so, ask your employer how to go about it - ie getting a quote, fill out an applicaiton + questionnaire ... this might get you some additional coverage for a cheaper price. Again, this would be complementary to your own individual life policy purchase as the minute you leave your employer, that group coverage gets cancelled as that is a benefit your employer provides for you.


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## jmbagsy (Mar 14, 2017)

Beaver101 said:


> ... ask your employer or check your group plan (employee benefits booklet) if they have an "optional/voluntary or additional coverage" (in mulitiples of your salary or unit amounts) available for employees to purchase. If so, ask your employer how to go about it - ie getting a quote, fill out an applicaiton + questionnaire ... this might get you some additional coverage for a cheaper price. Again, this would be complementary to your own individual life policy purchase as the minute you leave your employer, that group coverage gets cancelled as that is a benefit your employer provides for you.


I believe they do have that optional/additional coverage. So what you're saying here is I can increase my coverage through the optional/additional coverage and still get an individual life policy as STech suggests.


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## Beaver101 (Nov 14, 2011)

^ Yes and you might want to ask/check if there is optional "spousal" coverage available for purchase also.


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## STech (Jun 7, 2016)

jmbagsy said:


> It is a group insurance we have from our employer. Not much though, only 25k life insurance coverage. Im thinking of getting it from somewhere unless they would give me a big discount which I doubt would be the case.


I'm not sure I made my point clear enough. What I was saying, is that it's OK to get a small top up from your company, if costs are very little. So in your example, if you can get another 20K added on, for say a $1/month, then it's OK, otherwise don't bother. For your major insurance amount, say 200-500K, you ABSOLUTELY should get one from an insurance policy not related to your employment.




> Wouldn't you be able to save more if u get a joint insurance instead of a separate one? Wasn't it a reason we get a term insurance so that just in case one of the parents die, the other is left with money to cover the expenses just like in the "first-to-die" policy.


We both have our policies from the same company, so get a discount that way, but the policies are separate. I get 500K, and she gets 500K. If we both die, my daughter gets a million dollars. The webpage bellow does a good job of explaining the problems with first-to-die policies. I suppose it can be useful in some cases, but it wasn't for us.

https://www.lifeinsurancecanada.com/joint-first-to-die-life-insurance/


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## carverman (Nov 8, 2010)

jmbagsy said:


> Your thoughts on this please.


if I may summarize; 
1. You are married with one child.
2. You are all living at home...lucky three of you, no mortgage, no property taxes/maintenance and no worries...correct?
Assumption here..since you both appear to be wiorking, grandparents probably provide babysitting.

So really, what is your life insurance requirements now?..compared to 10 years and 20 years down the line?

Do you want to take out an large (and probably expensive TERM insurance and leave your children a million dollars if something should happen to both of you? Ok you can do that too. 
OR
...take out adequate coverage on one or both to look after your CHILDREN's living expenses, if both of you should die within 10 yrs of each other
what is the probability of that? The Statistics mathematics (guassian bell curve -(probabilty and distribution of events) doesn't really cover that scenario..so you have to make assumptions of WORSE CASE SCENARIO #1 that .something catastrophic happens to both parents, such as a ACCIDENT.

Refer to the link provided:


> The chart shows the increasing likelihood of cancer claiming a life and how it ravages the population from an early age; for those under 25, there is a seven per cent chance of dying from the disease.
> Across the whole year and all age brackets, the major causes of death were heart disease, cancer, chronic lower respiratory diseases, stroke and accidents.


For a better insight into statistics of life expectancy and distribution...look at the age vs life reducing events in this link. 
It was setup for US based population, but applies also to Canada, since we lead the same kind of lifestyles (more or less) Refer to the pie charts of the 4 age groups (1-24yrs) (25-44 yrs), (45-64) and (65 and over).
http://www.dailymail.co.uk/news/art...-alarming-differences-death-rates-states.html


In your case, you are now in the second age group (25-44)..so what do you see as the leading cause of death? Unexpected injuries and "Other"form the highest percentage...all others are minor compnents of early death. 
Moving on to the next age category..what is the highest there? *Cancer/heart disease*
moving to the last age category ...*cancer and heart disease* are most prevalent contributing factors.





> For now, (as I have little knowledge about investing) the only investment I have in mind is using the DRIP/SPP strategy. And I'd like to start it as soon as I get my life insurance in place.


The life insurance question is based on your personal needs and to some degree family history. (if there is a history of cancer or heart disease in your family history, all other things being considered in the equation, those two are most significant) If everyone in your family, mother/father/grandparents have managed to live without any major heath issues up to age 90...you (probably) don't or won't have any health worries..just accidental.


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## carverman (Nov 8, 2010)

STech said:


> https://www.lifeinsurancecanada.com/joint-first-to-die-life-insurance/


Having a joint life policy is not a good idea...particulary since many marriages end up in divorce. 

The divorce courts can pass judgements that the policy in place should be maintained to back up support payments to the spouse with the lesser income, as well as the inability to split the policy.

So in the event a divorce is on the horizon, having a million dollar joint life insurance policy can work against you, since you would be required by the court to name the EX as a IRREVOCABLE benefiiciary of your joint life insurance policy and continue to pay the premiums until the EX's death or your death.


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## jmbagsy (Mar 14, 2017)

Beaver101 said:


> ^ Yes and you might want to ask/check if there is optional "spousal" coverage available for purchase also.


I will. What's this one for? I assume a life insurance for my wife under the insurer of the company I am working for. Wife currently works the same company as mine but is only casual/ on call. Would it be worth to get her same as mine, that way we can have coordination of benefits as well.


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## jmbagsy (Mar 14, 2017)

STech said:


> I'm not sure I made my point clear enough. What I was saying, is that it's OK to get a small top up from your company, if costs are very little. So in your example, if you can get another 20K added on, for say a $1/month, then it's OK, otherwise don't bother. For your major insurance amount, say 200-500K, you ABSOLUTELY should get one from an insurance policy not related to your employment.


I see what you mean now. Thanks! I will ask them about that too.



STech said:


> We both have our policies from the same company, so get a discount that way, but the policies are separate. I get 500K, and she gets 500K. If we both die, my daughter gets a million dollars. The webpage bellow does a good job of explaining the problems with first-to-die policies. I suppose it can be useful in some cases, but it wasn't for us.
> 
> https://www.lifeinsurancecanada.com/joint-first-to-die-life-insurance/


Thanks for this. I will check it out.


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## jmbagsy (Mar 14, 2017)

carverman said:


> if I may summarize;
> 1. You are married with one child.
> 2. You are all living at home...lucky three of you, no mortgage, no property taxes/maintenance and no worries...correct?
> Assumption here..since you both appear to be wiorking, grandparents probably provide babysitting.
> ...


First of all thank you for your insights and taking time to answer to my queries. You have been (as well as the others) very helpful to me into my quest in understanding the labyrinth of financial world. Really appreciate you doing this big time.

If I understood it right, your point here is that...

if my reason for getting the life insurance is to protect my family in the event of accident (not as a foreseen health problems I might have due to family history), you are suggesting me to get a large coverage (which may be costly) for me and my wife in case something happen to both of us so that we could leave something for our children's needs.

Right now, personally the reason I am wanting to get the life insurance is the fear of me getting into accidental death and leaving my family with nothing. Healthwise, I believe I am healthy.


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## carverman (Nov 8, 2010)

Taking out a life insurance policy is the same as placing a bet at a craps shoot table or buying a lottery ticket. 
You place your bet by buying an insurance policy on your life for X thousands. 

The insurance company calculates their risk of paying out before the life insurance policy expires. 

The younger you are, the less risk to the insurance underwriter, so the premiums are lower, as they expect YOU to pay out the same premiums for the duration of the term, hence your life, counting that you, like most, will beat the odds of having the grim reaper coming collect.

They obviously have the resources to be able to do that.
Short of taking your own life (which also the insurance company can't predict, but may have a clause to prevent them paying out the full face value of the policy..everything else is a craps shoot. 

Other than accidental causes, everything else is "somewhat"predictable.
Life expectancy for males (non-smokers and occasional drinkers) is around 79. Assuming no history of cancer or heart disease.

Fill in the blanks and you should get a rough guesstimate of what your life expectancy COULD be.

http://www.mylifecalc.net/?gclid=Cj...cuIoa0RtILkAoUMxEponPwoDsu0n59ntKkaAipr8P8HAQ

Note, that accidental death cannot be predicted or included in these estimates. 

As a rule,most of us should live long enough to collect OAS/CPP..65+ . You are at the top of the bell curve at that
point in life...
after that..it falls off rapidly and depends on many factors..but if you make it for another 20 years, you are doing very well.

*from 85 to 90..less than 50% of the population will still be around*, even in a LTC
and it falls off very rapidly after that..(the bell curve I was referring too in a previous post), by age 90, only a fraction of that age group will still be around.

*by age 95.. maybe a tiny fraction of the aging population still alive and living in LTC*
and if you should be lucky enough to reach the magic age of 100 and get a personal congratulatory b-day card from the Prime Minister..
you are indeed a lucky man in life. So, that insurance policy that you paid for all your life could be considered 'wasted money"?...or not?


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## Beaver101 (Nov 14, 2011)

jmbagsy said:


> I will. What's this one for? I assume a life insurance for my wife under the insurer of the company I am working for. Wife currently works the same company as mine but is only casual/ on call. Would it be worth to get her same as mine, that way we can have coordination of benefits as well.


 ... it is life insurance, optional for your spouse that you can apply fo also, payable by you (employee) of course. You might want to double-check your group benefits plan as to whether there is a group "dependent" life available for your spouse / child as a benefit - usually very small amounts like $5,000/$2,500. Side note: COB applies to health and dental coverages only so there's no overlap in claim payments.


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## jmbagsy (Mar 14, 2017)

After some shopping i did, I came up with this broker from term4sale.ca. He gave me two options to choose. Any thoughts?

Option #1 – 30-Year plans:

· John, $400,000, 30-Year Term Life Policy, $41.40 per month, standard non-smoker rate, Assumption Mutual Life, www.assumption.ca

· Christine, $400,000, 30-Year Term Life Policy, $25.20 per month, standard non-smoker rate, Assumption Mutual Life, www.assumption.ca

total for both policies combined is $66.60 per month



Option #2 – Term-to-65 plans:

· John, $400,000, Term-to-age 65 Life Policy, $39.06 per month, preferred non-smoker rate, Equitable Life, www.equitable.ca

· Christine, $400,000, Term-to-age 65 Life Policy, $24.84 per month, preferred non-smoker rate, Equitable Life, www.equitable.ca

total for both policies combined is $63.90 per month


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## jmbagsy (Mar 14, 2017)

I asked what term to age 65 means and he said "The term-to-age 65 plan has guaranteed level premiums to age 65. In other words, premiums stay the same (do not increase) up to age 65."

So it kinda like a term 36 in my case (29 y/o) and a term 39 for my wife (26). Is that right based on the answer he gave me? If this is correct, I am leaning more towards option number two with a lesser monthly premiums.


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## hboy54 (Sep 16, 2016)

Hi:

I have heard somewhere that you are 4 times more likely to suffer a disability that might destroy your earnings potential than die. So my advice is to seriously explore this issue too.

Never personally purchased either insurance so know nothing specific on the topic.

Hboy54


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## jmbagsy (Mar 14, 2017)

hboy54 said:


> Hi:
> 
> I have heard somewhere that you are 4 times more likely to suffer a disability that might destroy your earnings potential than die. So my advice is to seriously explore this issue too.
> 
> ...


Hi there, thanks for the input. So maybe i should get a critical illness as a rider for it too?


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## twa2w (Mar 5, 2016)

jmbagsy said:


> After some shopping i did, I came up with this broker from term4sale.ca. He gave me two options to choose. Any thoughts?
> 
> Option #1 – 30-Year plans:
> 
> ...


Now you have a base figure, don't be afraid to call TD ins, royal insurance or any other companies for a quote.
FWIW years ago when I bought term, at an older age than you are now, I shopped around and the best rate I got was from rbcins by a fairly significant factor.. That was for 20 year renewable term.
Remember if you subsequently decide on a different term, you will have to dhop around again. One company may have a better price on 20 year than other companies for the same term and another company may have the best comparable price on 30 year.


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## LXG (Feb 16, 2017)

I'm no insurance expert, but I think critical illness and disability insurance are two different products. Critical illness is a lump sum paid out if you are diagnosed with specific illnesses named in your policy, whether or not you are disabled by it. Disability provides a monthly amount if you are unable to work due to illness or injury. At least, that was my understanding of it.


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## kcowan (Jul 1, 2010)

You need to tell us what coverage you have by your employers at work. I never worried about insurance while I was working. It was covered for me. And my stay-at-home wife had a straight life 25K which would cover me until I remarried.

(It was an interesting discussion about insurance with DW. She could not face it. Even though I assured her that she would also remarry.)


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## Beaver101 (Nov 14, 2011)

^ He only has $25K of basic group life coverage from work (and as his spouse, same place of work). 

I think a 20 year term renewable like twa2w says may work better (if not cheaper) as by that time, his eldest kid is 22 years old and out of the house even though the mortgage may not have been paid off. Keep in mind the bank may also offer "mortgage (creditor)" life insurance which is a lot more expensive where the beneficiary is the bank in this case.


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## Spudd (Oct 11, 2011)

Of the 2 options mentioned I'd go with the Equitable one, it's cheaper and gives you a longer period of guaranteed premiums. You can always cancel before 65 if you decide you don't need it any more.


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## jmbagsy (Mar 14, 2017)

Thank you all for your input. So I've decided to go option #2. The broker told me when is the best time for me to give him a phone call as we will do the application via phone call and would take an hour to do it. Is this some kind of a redflag or it's a normal thing?


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## Beaver101 (Nov 14, 2011)

^ That seems to be tele-underwriting, particularly it takes an hour. I would ask myself first a. would I be a. comfortable answering a (set of) questionnaire over the phone, and b. for an hour? (The answer is a definite no for me). Ask him why can't he send you the paper application or have you download it, fill it and send in or fill it in online - at least you get to see the questions and fill them at your own schedule, instead of some time-limited exam.


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## Beaver101 (Nov 14, 2011)

^ Forgot to add - ask about a/the 10-days-no-obligation look and/or a copy of the sample policy. Hey, he has to earn his fat commissions and you're a better educated consumer now. Good luck.


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## jmbagsy (Mar 14, 2017)

Beaver101 said:


> ^ Forgot to add - ask about a/the 10-days-no-obligation look and/or a copy of the sample policy. Hey, he has to earn his fat commissions and you're a better educated consumer now. Good luck.


Thank you sir, just did what you advised.


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