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Why It’s a Good Idea to Put Off Buying Life Insurance

| October 7, 2014 | 4 Comments

Waiting to buy Life Insurance

According to a TD Insurance Risky Business Poll 31% of Canadians do not have life insurance and 40% of them say they don’t think it’s necessary.  One-third of Canadians worry they aren’t adequately protected by their insurance policies. What I hear most often when sitting across from people, people with kids and other liabilities is that “We’ll think about it,” or “Maybe we will get some later.” I usually check in with these people a year later to see if they have gotten around to it and 9 times out of 10 they say no. I started to wonder why they were playing the waiting game.  Then I thought, maybe I was wrong – maybe it is better if you wait to buy life insurance, so I thought about all the advantages of putting off getting life insurance and made a list.

The older you get the more life insurance costs
Everybody likes to pay more for things and has money to burn. How many times have you said to yourself, “I wish I had bought that today instead of years ago for less. I am so happy I didn’t save all that money!”  I know I do, I love finding out that if I had “taken care” of something when I was able to, I would have never overpaid for it when I actually got around to it. Every year you wait the cost of life insurance goes up typically 7 to 8%.

I know when I am going to die

Apparently a large number of the population have developed psychic abilities, if you didn’t see that coming then you are not one of them. If you are one of them then it makes sense to wait until just before you are scheduled to kick the bucket to buy your life insurance policy. It must be nice to know when you time is up, unlike the rest of us who have no idea when it’s coming.

I feel good today so I doubt I will get sick or a medical condition that will make me uninsurable

Maybe your one of the psychic or just have a “gut feeling” but you woke up this morning feeling great, just like the past 1000 days before. You eat right and exercise regularly and you are in your prime! It’s only other people that get seriously sick, cancer and have heart attacks. It is highly unlikely you will be uninsurable of have to pay a higher premium due to your health.

I am covered through work and I will never quit or be fired

If you are a public servant, union member or part of a group health plan where you work then that’s all you need. You don’t even need to know what benefits you have, if it’s enough and how long they last. Just blindly trust that if anything happens you and your family will be taken care of by your work health benefits when the time comes. In today’s world most people stay with the same employer until they retire and with the current and future economy outlook no one ever gets fired, companies never close up shop and never need to downsize.

I don’t really need it

I hear this a lot (I wish I was being sarcastic with this one . . . but I am not) because who cares what happens after you die? It’s not your problem anymore you will be chillin in the afterlife with Mozart, Tupac and Anakin Skywalker. The mortgage, kid’s university tuition, funeral costs, other debts and living expenses will be easily taken care of on the salary of a single parent.  In fact I have never successfully delivered a death benefit check to the beneficiaries – they always tell me to take it back because they don’t need it.

The easiest decision to make it to not make one, heck even Superman needs life insurance. Sometimes you need to face the facts, look at the big picture, and prioritize what is important to you and who you need to take care of. I understand no one likes to think about death or being really sick however no one can predict the future and wouldn’t you rather your family say I’m glad we are taken care of or I wish we would have done something before something awful happened?

Andrew W. Bradley

Photo credit: Powerhouse Museum Collection / Foter /No known copyright restrictions

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Category: Finance, Living, Tips, Weekly Themes

About the Author ()

Andrew is a licensed Life Insurance Broker and Registered Retirement Consultant-RRC® helping Ottawa families since 2011. He is a father of two boys, owner of LifeInsurance-Orleans.ca, LifeInsurance-Ottawa.ca and was a host of Ottawa Experts on Rogers Cable 22. Author's website.

Comments (4)

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  1. Victoria Ess says:

    These are all great things to think about. Thanks for sharing.

  2. This is an actual email I received last week from a couple I met in August and wanted to think about it and then just never got around to filling out the application- “Hi Andrew, wish we’d completed when we met with you. Juan Pablo has a to have surgery to have something removed, that’s why I didn’t get back but felt I needed to let you know since you have invested so much time in corresponding with us thus far. I really appreciate it.
    Guess there is no way to retroactive this?”
    I’m not trying to embarrass them, just using this as a real life example of the point I was trying to get across in the blog post.

    *Details and name changed for privacy reasons.

  3. kathy downey says:

    Very interesting read

  4. Emilia says:

    Glad you put it out there, people will think about it

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