Life Insurance, Explained - Term Life Insurance vs Whole Life Insurance

If you're reading this, you've probably heard of life insurance before, and, there's a lot of different types of, and words to describe, life insurance. We're talking 'term', 'whole life', ‘universal life’, ‘variable life’, ‘infinite banking’, ‘be your own bank’... the list goes on.

In this video, we want to make life insurance as simple as possible, explain who actually needs life insurance, what type of life insurance is actually useful, what type(s) to stay away from, and how to calculate how much life insurance you may need.

Do you currently have a life insurance policy? If yes, what type of life insurance policy do you have? Let us know in the comments!

0:00 What you need to know about life insurance
0:43 What is life insurance?
2:20 What is term life insurance?
5:40 What is whole life insurance?
9:24 The problem with whole life insurance
12:36 How much life insurance do you need?

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Disclaimer - This content is for education and entertainment purposes only. Steph & Den do not provide tax or investment advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal.

[stephandden]

Do you have life insurance? What kind of policy do you have? Let us know! 👀

[dez]

Bravo! I was looking into Life insurance having just received a payout and nothing was making any sense... I think I was biased because I just had received a lump sum, which does feel nice... Thanks for this video! Great job as always!

[jessicapamel]

I've been thinking about this for days, weighing and all, and voila, a well explained video. thank you for this video

[BluFinanceTV]

You are making financial topics sound interesting. Welldone 🎉🎉🎉

[mazwrld]

I've been thinking about LI all week and boom a video that describes it! Just what I needed. It's too bad we have all these industries that pretend to be a general good when their not.

[rajbirgill]

Thankfully no life insurance as of now, thanks to both of you, you guys totally make 100 percent sense.

[hapigandhi]

Love all your videos. all life insurance agents in Canada focus on selling whole life insurance just to make a commission. You explained this very well.

[financialresuscitationwith]

I have term life 20 years paying $60/month for 2 adults at $500k each plus investing $500/month in low cost index ETFS in our TFSAs.

[rbenjamin]

Thank you! You are both so articulate and explain things so clearly! 🤗🥰 I do have a Manulife Permanent Life Insurance Policy: with the kind I have, my kids will get both the policy amount AND the money I have been putting into it since they were little. BOTH.

[emptymelodies]

Wow! Great video. I recently became a licensed financial professional that deals with all this, and I can say that you guys explained this very well!

[Foltzky]

You made this so easy to understand! I have term life insurance through my financial advisors. I had no idea what the heck it was for/how it worked haha I just blindly trusted them. I also have coverage for extended health care that isn’t covered by my work policy. It’s less than $60/month. Well worth it in my opinion.

[adventurousbec]

Wow, this made insurance make so much sense (for once)! Is a car insurance video on your radar?

[alvintoppin]

Most people don't have the financial knowledge and discipline to invest on their own!

[agastifx]

Thanks for clarifying it. Can we convert whole life to term insurance by any chance?

[AbhishekPandey-hqlc]

Great video. QUite informative and helpful.

[DLSAM]

What about universal life? Thats has a component of investments too and also the premium is to be paid for a certain term.
Great information as always!

[finna]

Can you guys do an episode on the home buyers rrsp plan and how the repayments work. I want to buy a home soon and am interested in contributing to my rrsp to help with that but it seems complicated

[itz.mariavicz]

So what do we ask to the L.I. company if we want something that Steph suggested at the end? Renewable and more of what we need vs what they have as a standard to pay?

[cutieplayfun]

Hi Steph & Den, Thanks for the info. Do you have a life insurance in canada?

[SouLife_Chats]

I was considering buying one. But looks like investing this money in an ETF is much better