Lousy Life Insurance
In my experience, many people pay far more for basic life insurance than they need to. There are a number of ways in which this can happen, but the end result is the same: less money in your pocket and more money in someone else’s.
To make my case (in a way that won’t call on the fury of the powers-that-be), I’m going to give you three basic examples. Two are examples I come across on a regular basis (and do everything in my power to fix) while the other is an example of one that I commonly recommend. I’m not going to say which is which. You can decide.
This policy is attached to your mortgage. As your mortgage decreases so does the amount you are covered for, yet the cost never goes down and can potentially go up.
This policy increases in price every year. It’s super cheap to start, but overtime the price becomes so ridiculous that most are forced to drop it and therefore lose their coverage.
This policy is set to cover you for a set amount and a set time-period that you choose. And the price stays the same for that entire period so there are no surprises.
Two of these are so obviously lousy that one would assume they’d be much cheaper. But that usually isn’t the case. The clearly superior example is almost always the cheapest (by a landslide) in the long-run.
Well, if that’s the case, then why are these other policies sold on such a regular basis? Again, to keep the powers-that-be at bay, I will leave that to your imagination.
However, I will say this. There are many good reasons why I left the corporate scene to start a private practice as an independent financial advisor but the main one is still true: I actually care about my clients and their well-being and I could not possibly care less about corporate profits and agendas.
I’m not sure who you have in your corner, but I hope they’re working for you and not someone else.
Rhys Martell, BA, EPC
Rhys Martell is an independent financial advisor and runs a private practice out of Abbotsford, BC.