Term vs whole life when you already have group coverage through work?
Software engineer in Toronto, late 20s, no kids yet but planning to buy a place soon. My employer gives me group life coverage worth about 2x my salary. Two things I'm stuck on. First, that group coverage vanishes the moment I leave the job, and people in tech switch companies constantly. Does it make sense to lock in my own term policy now while I'm young and healthy? Second, I keep seeing whole life pitched as an investment. I already max out my RRSP and TFSA and put the rest into index funds, so I'm skeptical it beats buying cheap term and investing the difference myself. Am I missing something? Would love to hear from anyone who's been through this, especially other folks in tech with RSUs that make the income math messier. Thanks.
Replies
It's smart to consider your options when it comes to life insurance, especially if your group coverage expires once you change jobs. A term life policy could provide affordable coverage for a set period, and locking it in while you're young and healthy might make it more accessible. Whole life insurance can act as an investment vehicle, but many people prefer term insurance and invest the savings elsewhere, like in RRSPs or index funds. Ultimately, the right choice depends on your financial goals and how comfortable you feel managing investments.