Quote:
Originally Posted by pseudoreality
I am going to give an alternative point of view. Keep in mind this is my personal opinion and not the recommendation of any kind of licensed professional. I don't think life insurance is the best choice for most people. For most people, I believe its better to just take the money you would have put towards life insurance and put it into a balanced (60/40), diversified portfolio (ETFs, not high-fee mutual funds) in the priority order of TSFA/RRSP/non-registered accounts. Keep your debt in check, have a good will and talk with your wife about what might happen. If you do that, you will be able to manage with the unlikely situation of something happening to either or both of you, while at same time investing in your future.
Again, this is just my opinion and what my family chooses to do. If you or your wife are not very employable and you live the high life on consumer debt, then maybe you need life insurance.
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Strongly disagree with that.
You should be doing all those things you talked about (investing) anyway. Those investments are there for if/when you grow old and want to retire in comfort.
Let's say you unexpectedly die at 35 with two small kids and a wife. Surely by that age all your investments combined wouldn't be enough to pay off your mortgage, car, final expenses, PLUS raise your kids until age 18.
If you were contributing a small (relatively speaking) monthly amount to a term life insurance plan, your wife and dependents would be able to live comfortably until they are old enough from your insurance payout, and your regular retirement investments would come to fruition later in their lives. I would like to know that my family is taken care of, should the worst happen.