What Happens When You Die?

Dying is an unpleasant thing to think about. It’s also inevitable. None of us are getting out alive. Selling life insurance is almost as awful. There are few products on earth as universally despised as life insurance. No one likes to buy it, no one likes to talk about it, and everyone thinks it's a scam.

I know better, so I'm going to continue selling it, educating as many people as I can, and doing my best to change the narrative. Here’s why...

Insurance for your dog, but not you?!

You have insurance on your basement carpet in case of a flood. You have insurance on your six year old SUV in case someone hits you turning left on a yellow light. If you have a dog, you probably pay $50 - $100 a month to ensure you don't have to 'buck up' for a $6,000 rotator cuff surgery on your Boston Terrier (happened in real life to a friend! Ha!).

So, why wouldn’t you insure your income? Is every dollar you will ever make not worth a few hundred dollars a year if it means continuing to support your family when you're gone?

Life After You 

Life insurance doesn’t exist so your spouse can buy a Tesla, retire, and spend $20,000 on hats when you die. The proceeds from life insurance benefits go towards paying bills, sending your kids to school, and generally maintaining your family’s status quo. It ensures that they aren’t left with the burden of everyday expenses on their own.

Take a minute to think about what your family’s life looks like after you’re gone.

• How much time will your spouse need away from work? Do they have an employer policy that allows for an extended absence, or enough savings to allow them to take a break, or will they need to head back to work quickly? 
• On an ongoing basis, is your spouse’s salary going to be enough to keep up with the household expenses?
• Can they still put away $400 a month for your kids’ RESP funds, pay for hockey, and take the occasional vacation? If you’re like most families, probably not.

By not getting life insurance, you are putting your family’s well being at risk. They will have enough to work through and manage with your passing; additional financial stress, which can be an intensely emotional burden, is the last thing they need. 

Prioritize to Protect Your Family

Late night infomercials in the ‘90s told us that, for the cost of a cup of coffee a day, we can sponsor a kid in a developing country. For the same cup of coffee, you can buy term life insurance on yourself and your spouse.  

I understand if it feels uncomfortable to think about allocating more money to your monthly budget. Money is not unlimited. But if you are not protecting your family against the worst case scenario, your financial plan may end up being useless. So, reallocate your budget; take some of the money you are putting into RESPs, TFSAs, or even your work RRSP plan, and - for goodness sake - buy life insurance!

Steps off soapbox