There’s a discussion going on at the Canadian Money Forum about the cornerstones of good financial planning, and the topic of life insurance has come up.
One contributor suggested the purchase of life insurance may increase your risk of death, because there are now financial gains to be made. Another community member responded that the purchase of insurance, by itself, will not increase the chance of your death.
It seems obvious that the chance of dying is not influenced by buying life insurance. Right?
Except it might be.
There are a couple of interesting phenomena from the world of medical science known as the healthy user bias and the compliance effect – both of which provide surprising evidence about what keeps us alive and healthy, paying life insurance premiums instead of collecting the payout.
What am I talking about?