Why Buy Life Insurance?

Common questions when considering life insurance

Q1: Why should I buy insurance?

We bear a heavy tax burden in Canada - life insurance receives favourable tax treatment, combining benefits of a principal residence (tax-free benefit at death), RRSP (tax-sheltered growth on savings inside the policy), TFSA (tax-free access) and an investment line of credit (potential for tax deductions)
Allows much larger deposits for tax-sheltered growth than an RRSP or TFSA
Life is uncertain - you don't know when you may die, which can leave your family vulnerable
- Life insurance provides funds at death to provide for your family
- Life insurance provides funds to pay the taxes due on your death (e.g., on RRSPs, probate)
- Life insurance skips probate tax and public scrutiny: proceeds go directly to your heirs, bypassing your will and estate
Life insurance provides creditor protection when properly structured
Your beneficiaries will thank you

Actuaries are specifically trained to measure and manage risk
Technical expertise: designed and supported the types of products sold today
Field expertise: trained and supported advisors and most national organizations that sell investments and life insurance
Consulting background: know how to listen and analyze your situation to propose optimal solutions for you
Committed to helping the community via blogging, videos, etc.
Continual learning: know what products are coming up, changes to existing products, changes in the industry, etc.
Satisfied clients (see testimonials on LinkedIn)
Get a second opinion on your current life insurance free of charge (insurance audit)

Specializes in life, health, disability and long-term care insurance (no investment or other advice; no financial planning)
Collaborates with your current advisors in accounting, investing and law
Extensive team for help in other areas (referral network) - provides access to other advisors if you lack them or want changes
Built on solid experience in product design and marketing
Using technology to help you 24/7 via web meetings
Reveal rather than conceal (e.g., this website and these answers are an example)
Access to unique solutions
- e.g., RBC Security Fund is available from less than 25 advisors in Ontario

Prices are set by the insurance companies
- the same for all advisors, regardless of credentials and experience
No discounts available legally in Ontario
- protects you from unscrupulous advisors who sell only on price and do not provide ongoing service and maintenance
Products available from a range of companies (not restricted to products from a particular insurer)
Products selected for long term reliability and performance
Free extras such as the Marketing Reflections eNewsletter and blog posts to help you continually
Ongoing contact
- daily: tweets @mActuary and @riscario (most days)
- weekly: blog posts at Marketing Actuary to grow your business and Riscario Insider to help with your financial risks
- monthly: Marketing Reflections eNewsletter
No charge for the time spent with you and on your behalf
You get access to specialized underwriters to help get your case issued under the best terms

Prices increase as you get older
If your health deteriorates, you may become uninsurable or have significantly higher premiums (up to 300% more)
The underwriting process often takes 2-3 months - you're not protected until you're approved and pay the first premium
You have a 10-day money-back guarantee provided by all insurers
The free underwriting process may uncover medical issues you can address now before a symptomless condition becomes grave or incurable
Tax rules change but inforce life insurance policies are often grandfathered
You won't value what you buy until later (but get peace of mind in the interim)
Generally funded by reallocating a small portion of your investments rather than from cash flow

For personal attention, arrange a chat.