What do I need???

[fb132]

So I am 33, no kids, no wife, no brothers and no sisters...My parents are still alive.

My questions are:
1) Should I still get a will knowing that in death, my parents would get everything I own by default?
2)Do I need Long Term Insurance??? I live in Canada, so we have healthcare and I have some benefits at work, but they are basic (Dental, a small death policy, I think if I die, they give 25K$ to the beneficiary), but since I have no kids or wife, is it really necessary to purchase long term insurance?
3)Do I need to purchase long term care insurance???If not now, when should I start buying it?
4) Is there anything else I would need?

[AZDude]

You definitely do not need life insurance. Long term care insurance is probably not a priority right now, assuming you are healthy. The only reason you would need that would be if you suffered an accident where you needed assisted living for the rest of your life. Without your bank account would be drained until gone, then you would be in a government run center for however long you live. Unlikely, but possible. You will have to assess the risk of that compared with the money it would cost.

Other than that, anything else would depend on your financial situation. If you have large enough assets, then an umbrella liability policy might be a good idea to protect you from some unforeseen lawsuit that steals all your money.

[abhe8]

What is your profession, and best worth? In some professions disability insurance is really important.

[FIRE Artist]

This is all my personal opinion as a fellow SINK.

1.  A will will speed up he distribution of your estate.  Do you care about that?  If yes, then get a will.  An easy thing to do is set your beneficiaries for your pension plan, that should hopefully compensate your beneficiaries in the near term and they can wait for the house proceeds to come later.
2.  Do you mean long term disability?  I recommend it, it gives salary continuance, usually 60% tax free, to replace your income if you can't work.  every place I worked, this was a mandatory deduction.  If you mean life insurance above and beyond the 25k, then no, as a single person you don't need it, UNLESS someone has been kind to you and consigned a loan which your estate will not cover should you die.
3.  I am sink too, my financial plan is that the equity in my house will pay for my long term care needs.  I feel LTC is necessary to protect a healthy surviving spouse from not losing the house should one fall ill and need the care.  If you are single, you might as well sell your house.

[Shinplaster]

Think about setting powers of attorney for both financial, and medical.  You probably think that your parents would automatically have the power to do things for you if you are incapacitated, but they will not.  Attempting to arrange financial power of attorney after the fact can be quite complicated, and time consuming.  Without a medical POA, doctors will of course consult your parents, but not follow their wishes if they disagree.  That can still happen even with a POA, but it helps to have all that in place.

I also think you should do up a simple will.  Again, it makes things so much easier for your executor to make sure your wishes are followed.

[fb132]

You definitely do not need life insurance. Long term care insurance is probably not a priority right now, assuming you are healthy. The only reason you would need that would be if you suffered an accident where you needed assisted living for the rest of your life. Without your bank account would be drained until gone, then you would be in a government run center for however long you live. Unlikely, but possible. You will have to assess the risk of that compared with the money it would cost.

Other than that, anything else would depend on your financial situation. If you have large enough assets, then an umbrella liability policy might be a good idea to protect you from some unforeseen lawsuit that steals all your money.

When do I start thinking about buying one (Long term care)??? In my 40's or 50's...by the way, I am healthy and I work out, so unless I am cursed, I should be fine until I am in my 60's and maybe even longer than that, but in life you never know.

I don't think I should worry about a lawsuit, I am an assistant manager at a retail store and I live in a province where the goverment takes care of car accidents unlike the other provinces or even in the US where people can sue each other....and I don't even drive a car, so I have a hard time imagining someone willing to sue me for anything.

[AZDude]

Sounds like you living a relatively low stress life. I wouldn't worry too much and enjoy having no responsibility.

[TrMama]

I would do a will for the simple reason that your parents will pay less taxes on your estate if you die. My FIL died without a will and the government didn't distribute his estate as he would've wished plus took a huge portion in taxes.

I'm still unsure of what you mean by long term insurance. Do you mean?
a) long term disability insurance (pays out a portion of your salary if you get sick or injured)
b) long term care insurance (pays for a nursing home)
c) term life insurance (pays out to your beneficiary if you die)

In your case, you probably should have a, but not b or c.

[2Cent]

Usually you will inherit from your parents. You should think apart from them if you want anyone to benefit in case of untimely demise. I wouldn't over insure things that are very unlikely and already sort of covered by the government. A better thing that you need is when you get a bit older a good relationship with a younger person who can help you with making financial arrangements. When you're old and alone, it's really good to have a "kid" who you can trust to help you deal with all the things that need to be arranged. This is something to start in your 50's. For now, just save a bunch and don't worry too much. One thing maybe is make sure your parents have their things in order. When they get old they will have no one but you since you have no siblings.

[fb132]

Usually you will inherit from your parents. You should think apart from them if you want anyone to benefit in case of untimely demise. I wouldn't over insure things that are very unlikely and already sort of covered by the government. A better thing that you need is when you get a bit older a good relationship with a younger person who can help you with making financial arrangements. When you're old and alone, it's really good to have a "kid" who you can trust to help you deal with all the things that need to be arranged. This is something to start in your 50's. For now, just save a bunch and don't worry too much. One thing maybe is make sure your parents have their things in order. When they get old they will have no one but you since you have no siblings.

Actually my situation is different than my parents, I am the saver, they are in debt, so I have no idea how that will play out when they won't be able to work and they need to rely on me. I don't look forward to that, not because I don't want to help them, but it is simply because they can be stubborn. They don't even have a will, I mean they are a mess financially. I think the fact that I am younger and their son, they don't take my advices seriously. The only asset they have is their house and that is not even paid off and won't be for a good 10-15 years...if they don't lose their job. Basically, they are the typical anti-mustachian parents.

Basically, I am not counting much on inheritance. The way they handle their money is the main reason why I turned to MMM, simply because I don't want to be like them and at the sametime I want to build a huge nest egg that if the day arrive that they need my assistance, at least I will have alot of money by then to provide for them without worrying about money. 

[cautiouspessimist]

Usually you will inherit from your parents. You should think apart from them if you want anyone to benefit in case of untimely demise. I wouldn't over insure things that are very unlikely and already sort of covered by the government. A better thing that you need is when you get a bit older a good relationship with a younger person who can help you with making financial arrangements. When you're old and alone, it's really good to have a "kid" who you can trust to help you deal with all the things that need to be arranged. This is something to start in your 50's. For now, just save a bunch and don't worry too much. One thing maybe is make sure your parents have their things in order. When they get old they will have no one but you since you have no siblings.

Actually my situation is different than my parents, I am the saver, they are in debt, so I have no idea how that will play out when they won't be able to work and they need to rely on me. I don't look forward to that, not because I don't want to help them, but it is simply because they can be stubborn. They don't even have a will, I mean they are a mess financially. I think the fact that I am younger and their son, they don't take my advices seriously. The only asset they have is their house and that is not even paid off and won't be for a good 10-15 years...if they don't lose their job. Basically, they are the typical anti-mustachian parents.

Basically, I am not counting much on inheritance. The way they handle their money is the main reason why I turned to MMM, simply because I don't want to be like them and at the sametime I want to build a huge nest egg that if the day arrive that they need my assistance, at least I will have alot of money by then to provide for them without worrying about money.

I think what 2cent meant was that your parents are more likely to die before you than the other way around. A will that outlines where your estate goes in the event that you all die at/around the same time will make sure it goes where you want it rather than reverting to the state.

[2Cent]

Usually you will inherit from your parents. You should think apart from them if you want anyone to benefit in case of untimely demise. I wouldn't over insure things that are very unlikely and already sort of covered by the government. A better thing that you need is when you get a bit older a good relationship with a younger person who can help you with making financial arrangements. When you're old and alone, it's really good to have a "kid" who you can trust to help you deal with all the things that need to be arranged. This is something to start in your 50's. For now, just save a bunch and don't worry too much. One thing maybe is make sure your parents have their things in order. When they get old they will have no one but you since you have no siblings.

Actually my situation is different than my parents, I am the saver, they are in debt, so I have no idea how that will play out when they won't be able to work and they need to rely on me. I don't look forward to that, not because I don't want to help them, but it is simply because they can be stubborn. They don't even have a will, I mean they are a mess financially. I think the fact that I am younger and their son, they don't take my advices seriously. The only asset they have is their house and that is not even paid off and won't be for a good 10-15 years...if they don't lose their job. Basically, they are the typical anti-mustachian parents.

Basically, I am not counting much on inheritance. The way they handle their money is the main reason why I turned to MMM, simply because I don't want to be like them and at the sametime I want to build a huge nest egg that if the day arrive that they need my assistance, at least I will have alot of money by then to provide for them without worrying about money.

The best way to give advice to people who think they know everything already is to just ask a leading question. Then they can answer you and think it is their own idea. Like: "Hey dad, I heard a lot of 60+ people are not able to find work. How would you manage if this happens to you?"