Life Insurance Is Boring, But You Probably Still Need Some

Most Canadians need personal life insurance for risk management

To say that life insurance is boring is probably a understatement. The average Canadian is not very excited to come face-to-face with their own mortality and quantify the financial loss if they were to pass away. Well, this is the exciting job of the life insurance broker.

A qualified life insurance broker can help you get through this uncomfortable but necessary discussion and help you buy the right life insurance policies to meet your needs.

Why do so many Canadians procrastinate about getting life insurance

If you are among the 45% of all Canadians who don’t won personal life insurance then you need to get some advice ASAP. Even if you do own a policy, ask yourself: when was the last time you felt excited about life insurance and your own personal risk management issues? Managing your investments is much more exciting, even if it can be stressful. As the markets go up and down you can feel the excitement of being on that roller coaster ride.

Life insurance is not like this. Having your financial risks, especially the biggest risk of premature death (total and irreversibly risk of loss) are not the exciting financial planning discussion you are looking to have. Most Canadians hardly have time to focus on their own personal investment planning, let alone setting aside time to do the uncomfortable stuff.

This article is to encourage you to do the boring and uncomfortable life insurance planning NOW, before it is too late.

When is it too late to buy life insurance?

Besides the obvious “too late” event, that of dying, let’s look at a few common circumstances that make buying life insurance a real problem for many Canadians. In my career I have been approached very often by people looking to buy life insurance after something has happened in their life. If you have had a rude awakening by seeing a friend or family member go through financial ruin because there was no insurance in place, then you are lucky. You have been given a chance to buy the life insurance you need before the same thing happens to you.

A worse problem I have seen is when people suddenly have a serious medical emergency and are looking to buy life insurance. Once you have been diagnosed with a medical condition you are either uninsurable or your now need to pay significantly more for life insurance than the average healthy Canadian.

Conditions like cancer, heart disease, type 1 diabetes, MS, Parkinson’s, or a number of serious health conditions will make you uninsurable. This means that a life insurance company will deny your application for life insurance because the risk of you dying in the near future is too great. Life insurance companies are not obliged to insure ALL Canadians. They are in the business of insuring average risks to average Canadians.

There are many other minor health conditions which would not be a straight decline but would increase your premium above the standard price. This is called being a “sub-standard risk” or being “rated” for life insurance. The ratings start at 50% above standard price to as high as 350% above standard. Common conditions for rated policies might include being seriously over-weight, having high blood pressure or high cholesterol. Other common conditions I have seem are cancer survivors (5 years in remission usually makes you insurable again), non-insulin dependent diabetes, mental and nervous disorders like depression , anxiety, etc. Once your health has changed for the worse you might have to pay more for life insurance and it will be many years before you can again qualify for standard rates (even if you return to good health).

Life Guard Insurance – your life insurance broker team

Life Guard Insurance is associated with experienced and professional life insurance brokers across Canada. We can help you find a broker that can get you the life insurance plan that will meet your needs today and be the right product for you in the future. Feel free to contact Life Guard Insurance to find a life insurance broker near you.

The article was written by Mitch Reynolds+. If you found this article interesting or it made you think, please feel free to share your comments below. Liking us on Facebook, giving us a +1 on Google or Tweeting this article about life insurance being boring would also be very much appreciated.

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