Is Life Insurance Worth It? It Sure Is But Find Out WHY!
A question I get constantly is: Is life insurance worth it?
….and it makes complete sense. This a very important purchase and it’s a big commitment. So I would be surprised if people DIDN’T ask this question.
Despite being an independent life insurance agent I am going to give you the answer I would give if I quit Policy Architects today.
In fact, this is the way I run my business. There are a lot of people out there competing for your dollars. Although we are always expanding our business, we see our model as something more than that.
Giving sincere advice and steering people towards the products they need rather than the ones that have the best commissions is our motto.
We see you as a client for life, which means we will be in touch throughout your term. If you aren’t happy we want to know because this is NOT the energy we want to leave in an already difficult world.
With that out of the way let’s dig into the value of life insurance and why I would sell it to my kids.
Scam Alert - Life Insurance Agent Entering the Room
Is Life Insurance Worth It? Well let’s start at the beginning.
I honestly was a little hesitant to get into the life insurance biz. We all know the stereotypes. The smarmy guy or gal dressed to the nines with a great watch that slides into the chair next to you trying to sell an expensive whole life policy at your Aunt Rhoda’s wedding.
This characature now makes me laugh. I know so many awesome agents that it’s tough to reconcile myself with this image. BUT that said there are times when it’s justified.
In fact, I have a personal story that unfolded only last week. I was working with some elderly clients and they had another agent contact them. This agent convinced them he had a less expensive policy and convinced them to ditch my selection.
Well as it turns out they had medical issues that prevented them from qualifying for the alternative coverage and they called me immediately to find out what could be done.
Sheesh. There really are some bad apples but they are the exception NOT the rule.
For the most part, life insurance agents are honest and their products solid – but as with everything there is a caveat. You need an agent who understands the products they are selling. Someone who has access to the best insurers AND an agent that understand the differences between companies as they pertain to your medical situation.
Is Life Insurance Worth It? Unequivocally YES! BUT You Need the RIGHT Insurance
Virtually ALL the horror stories I have heard come from people who didn’t do their homework. They typically slip their phone number into a contact me page and speak to an agent sight unseen.
This leaves your destiny up to whomever gets your lead. Which means you don’t know if they are new agent, have unlimited experience or are a tied agent.
I’d like to give you a little background about why I started Policy Architects. I knew upfront I didn’t want to work for a life insurance company. This would mean I could only sell their products (a tied agent).
If you have been following me at all you know I review Canadian companies. This is because there are so many products out there and insurers to choose from.
But you need to know this upfront. NOT all companies are created equal when it comes to medical issues…
…and this seemingly simple choice can translate into savings in the 10’s of thousands of dollars over the course of your term if you do your due diligence.
This made it important for me to become an independent agent so I could represent the best companies in Canada and offer the most competitive rates.
Picking The Right Company For You
Selecting the right company for you is the key and it’s not a straightforward process. A lot of clients want instant pudding so they go online to search for “rates”. I think this is terrific – but know just because those rates are advertised doesn’t mean you qualify for them.
Each insurer has its own niche and underwriting process. So if you have a medical condition like Type 2 diabetes you won’t apply to the same insurance company as someone that is in peak physical shape.
We also have to weigh the TYPE of life insurance you want (permanent or term) which is dictated by your budget and whether or not you want coverage until the day you die or just periods of vulnerability.
The next step is to look at your goals – where will you be in 10, 20 or 30 years? What kind of cash does your family realistically NEED to move forward after your death? Are there any add-ons you need like disability insurance or critical illness?
Anyway if we go through everything in great detail you will get a terrific policy that you can afford – that will provide your family for protection for years to come.

Go Fund Me Isn't a Guarantee &
Life Insurance Protects Your Loved Ones from Financial Devastation
Sadly my wife and I know people who have sustained a major loss without life insurance and it was a mess.
If the coronavirus has taught us nothing, it’s how financially vulnerable we all are. When pay checks stop we run the risk of losing everything.
Because of the global nature of the virus banks and the government have given us assistance but that’s not the case when someone dies. There is no runway when people pass away – bills don’t stop and debt doesn’t evaporate.
So what happens? The deceased’s estate pays the obligations and the rest is left to you. Often that’s not much.
My wife had an acquaintance that lost her husband in a freak accident. He didn’t have life insurance – but he left behind three kids, a stay at home mom and debt. Thankfully she had community support and people pitched in so they didn’t sink into bankruptcy, but this is the exception not the rule.
So why do I love life insurance?
“In fact, many Canadians are facing unprecedented anxiety about their finances, their physical health and their loved ones’ well-being. The April edition of Morneau Shepell’s Mental Health Index found that 81 per cent of Canadians indicated the pandemic has impacted their psychological well-being negatively.”
Life insurance becomes key topic for advisors’ clients amid COVID-19, Globe and Mail
1.
Life Insurance Pays Debt & Keeps Your Family In Their Home
Most of us have mortgages and credit cards. These obligations continue after death. If your spouse owes 100’s of thousands these debts have to be satisfied. If you want to keep your house and lifestyle after the loss of a primary breadwinner things can get sticky.
Life insurance guarantees your family the funds to continue on – even when you are gone.
Another expense people often overlook is the cost of the funeral. It’s not cheap to bury someone. Cremations cost upwards from $5k and funerals upwards from $15K. Ouch.
2.
Life Insurance Keeps Your Promises
One of the most difficult things to think about when you are planning your final days is your kids. What if you die before they grow up? It’s heart wrenching to think about all the promises you’ve made going unfulfilled.
My oldest son wants to go to a big university to play basketball. My wife and I talk about the financial realities of this all the time. It’s going to cost a bomb, but we want him to make his dreams a reality.
BUT what if I die before we save enough? This is a possibility. Life insurance keeps your promises when you aren’t there.
3.
Life Insurance Keeps the Tax Man Away
Do you have an estate? If so CRA is going to come knocking – while you are alive AND when you die. Life insurance is a terrific tool for those that have some expendable cash.
There are all kinds of creative ways to use life insurance to shelter your money if you have exhausted all other traditional methods AND to make sure your loved ones are covered when you die.
4.
Life Insurance Keeps Businesses Afloat
Do you have a business? Life insurance can cover key people to make sure that a sudden death doesn’t end everything,
It can also be used to cover loans to make improvements or expand.
As if that’s not enough – great benefits that include life insurance can be used to entice top level employees.
5.
Life Insurance Allows For Grieving
Losing someone you love is one of the most difficult things you will ever do. If you add financial devastation to the mix it becomes unbearable.
I know people who have had to return to work after only a few days because they couldn’t afford to take more time away from their job.
No one should have that sort of financial pressure when they are grieving. Life insurance allows you to take your time.
6.
Life Insurance Keeps Families Healthy
The stress and pressure of a death does terrible things. Let’s say you are a stay at home parent and the main breadwinner dies. You still have very young children at home. Now what?
Do you get a job – any job to keep the money flowing?
Maybe – but what about child care? Will your wages cover those costs and leave enough for the bills? Maybe – or maybe not.
Life insurance keeps families together and reduces stress.
Is Life Insurance Worth It? YES!
Well I guess it comes down to this – I would buy life insurance and recommend it to my loved ones even if I didn’t work in the industry.
It really is a no brainer. The best part? It’s VERY affordable.
Most of my clients buy term insurance to cover an unexpected death. Term insurance is an incredible product because it provides a lot of coverage for low premiums.
But that’s not all we have to offer. If you are looking to protect your family from the cost of a burial check out small final expense policies. They are easy to qualify for and are super affordable too.

If you are one of the lucky ones and have an estate, permanent coverage may be a great fit. While it’s more expensive you get coverage ’til the day you die. It’s also a terrific tool for financial planning.
All in all I am proud to be a life insurance agent and would recommend it to anyone with debt and dependents. If you have any questions or want to review some products give me a call today. I’d love to help.