Posted: Mon Oct 23, 2006 8:40 pm
Was not sure where to place this post, so started a thread here.
Life insurance - do people need it?
If so - whole life, univerzal life, term?
Better to go with TELUS term or with an outside provider that can offer a group rate such as through a club or an association one might belong to (AMA, BCAA, etc)?
What's enough or too much?
Posted: Tue Oct 24, 2006 5:28 pm
unfortunately there is no one "Right" answer to your questions... it depends a lot on the person...
do *I* need life insurance? no I don't.
do *YOU* need life insurance? I have no idea...
The reason I don't need life insurance is because my assets more than cover my debts (in fact my only debt at the moment is the mortgage, and the house is worth more than 4 times the value of the mortgage), and I have no dependents to support, so if I were to die, my estate would have money left over, and nobody that needed to live off it.
On the other hand, if you have a family with young children, and a large debt load, the answer is probably yes, you do need it. the big thing with life insurance is figuring out "if I were to die, what costs would my dependents have to bear, and am I leaving them the resources to cover those expenses?"
How much is enough? well... again, that all depends, "enough" is enough to cover the expenses you leave behind, that could be things like helping to raise children you've left behind, or simply cancelling out your debts, or enough to tide a spouse over long enough that they could get a job. it all depends on your personal situation. as I said, "enough" for me is none, for you it may be quite different.
As for where it's best to get it... shop around, find out what the premiums will cost, and what amount they cover, the TELUS plan has advantages because the company subsidizes part of it, and it's convenient (payroll deductions) and for most employees will probably be the best bet, but if you get a better deal through another club or what-not, there is nothing wrong with taking them up on it.