16 Replies to “Do You Need Permanent Life Insurance?”

  1. Hey Ben, thanks for your videos, they are a great source of info and I often tell my friends about your channel. Question: I have no dependents, but when I purchased my condo I had to buy life insurance that would pay off my mortgage in case of death. Wondering if I should just make a Will that covers any costs to my largest asset instead of paying a monthly premium. I also understand that I pay the same amount no matter what the remaining debt, so over time I am getting less bang for my buck…thoughts? Thanks, Alex.

  2. Life insurance is comparable to buying puts on your own life. You can choose the strike and date, premium will follow those. Great video as always Ben!

  3. Thanks for a great review of the topic. 80% of people who buy permanent life insurance drop it at some point because life changes and they can't afford it, or regret buying it in the first place. This just shows how grossly oversold this product is due to the insanely high commissions the insurance salesman get for it compared to the much more appropriate term insurance that most people need, assuming they need life insurance in the first place.

  4. Thanks for the great video, Ben!

    If I'm not mistaken, Life Insurance premium is not tax deductible in Canada. However, I'm not sure if insurance payout will be tax-free or not. Could you please advise? Thanks!

  5. Ben. I read on of your articles in the globe and mail about buy debt vs paying off your own. Ie putting money into bonds vs paying off your mortgage. Are you going to make a video on that topic? Stuff like that gets a lot of people thinking. Which I believe is one of the best things that your channel accomplishes

  6. Did buy a Permanent life Insurance, after couple of years and some finance learning later, I made the math and realized it was better for me to buy term insurance and invest the rest.

    Why I did this, pushy salesmen, that got me in is speech,

  7. Great video Ben, but I'm not big fan of term life insurance. I compare it to renting versus buying a house. Yes term is cheaper but at the end of the term your rates skyrocket so much that you end up giving it up by the time you are 50-60 years old and you have nothing to show for it. I have a whole life 20 with an investment portion that I bought that is paid off over 20 years and the value of the policy increases each year. The longer you live the more the value of insurance (ie. At age 40 its worth $100K, age 59 $159K, up to age 90 $480K). I only pay for 20 years and the rates and value are guaranteed.

    The best part of it is that its all tax free to my beneficiaries.

    I understand how some people that don't have dependants might not need insurance but its part of the tricfecta of insurance, financial investments and housing.

  8. Hi Ben! Great video as usual, I appreciate the work you guys do at PWL. Raymond Kerzerho taught one of my finance classes on capital markets during my undergraduate degree at McGill.

    Recently I earned my IQPF designation and learned that universal life insurance is generally only tax-efficient after all registered accounts are maxed out and all debts are paid off. What are your thoughts on this?

  9. How about those who are being impacted by the CCPC small business deduction. My accountant thinks I may need to buy Corp owned whole life insurance. I already have a 60/40 portfolio so I realize this would be counted as part of my fixed income. Thoughts of a better strategy than whole life insurance?

  10. Hi Ben, thanks for the great video! Just wanted to know your thoughts on getting life insurance when youre in your mid-20's when you currently have no dependents in order to lock in a "good" rate? As I have heard being younger means lower premiums.

  11. Hey Ben, What are your thoughts for high net worth individuals ($5 million) looking to save on taxes using permanent life insurance with a cash value or investing component . They have already maxed out their TFSA and RRSP accounts and looking for a new strategy. Your thoughts are greatly appreciated! Love your videos!

  12. When Ben drops a video, I drop everything and take myself to financial school. Thanks for the great content as usual Ben! This is one of those areas I am currently investigating so I appreciate your clearly communicated thoughts.

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