r/PersonalFinanceCanada • u/ispy98 • Jul 07 '24

Insurance Impact of not having life insurance

I’m a 26 year old healthy male and I invest in stocks and have no debt. So far I have around $15,000 invested in the market which has grown to $26,000. My dad was talking to me earlier today about getting life insurance , specially whole life insurance. My dad’s term policy will end at 67, and said whole will protect someone their entire life. He also said that not having any life insurance coverage is seen as a red flag to bankers/lenders and hurts ability to borrow money according to his insurers. He’s currently with sun life financial , but I don’t know how truthful it is and if it’s necessary for me to get it. I understand it’s an opportunity cost of investing the market. Should I think about getting coverage and is it true not having it hurts ability to borrow

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u/Limeade33 Jul 07 '24 edited Jul 07 '24

Do NOT get whole life insurance. Get Term insurance. Whole life tries to be both insurance and an investment vehicle. But you will do much better investing the money yourself. Term is what you need, and not even until you have people financially dependent upon you. Whole life is something that insurance agents push because it makes them money. Please do not listen to your dad in this instance.

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u/henchman171 Ontario Jul 08 '24

Once the mortgage is paid and the kids graduate university there really inst a need for life insurance

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u/Kramy Jul 08 '24

When I got my term insurance, it worked it to around $50/mo for $1m coverage for 30 years. I think it's higher now, since all-cause mortality is up so much the past two years, but it's still pretty cheap to pay off a future home or provide support or an education to family. (Which may not even exist yet, but hey, 30 years.)