Its true that most people need less insurance and different insurance as they age, but seriously cost-wise its cheaper to buy an insurance policy to cover the various tax liabilities that will exist upon your death.
This is especially noteable when you look at a cottage or cabin. The original cost might be $250k, but its value could well be 1.25 Million (to keep things easy). There is a $500k taxable hit then upon the death of the owners. Even if you've invested, it would be cheaper to pay the almost $200k in taxes with an insurance policy. There are also taxes on RRSP's and investments as well as any properties other than a principal residence. Finally, and perhaps most importantly life insurance doesn't have to go through your estate and is 100% tax free.
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