Get the coverage you want without breaking the bank. Here’s how:
More than 21 million Canadians1 have life insurance. For those who don’t, the most commonly cited reason is the cost. Is life insurance really so expensive that you can afford to go without it?
The reality is there are many customizable life insurance solutions available to meet all of your family’s needs, including affordability. Here are seven tips to help you shop for life insurance without breaking the bank:
Only pay for what you need. Before you buy, assess your lifestyle and financial obligations with the help of an experienced financial advisor. You may need less coverage than you think.
Ask about multi-coverage discounts and hybrid coverage. Some insurers offer reduced rates if you purchase more than one coverage through them. They may also offer valuable add-ons or “hybrid” coverage, such as Life with Critical Illness or Life with Long-Term Care, that offer you additional protection at a cost that is less than the price of two separate coverages.
Consider term insurance. If your obligations are time-limited—for example, you have fifteen years left on your mortgage—you may only need to be covered for that time. Term insurance generally costs significantly less than permanent insurance. Make sure your policy is renewable or convertible to permanent insurance in case your needs change.
Put those premiums back in your pocket. Some term insurance have a “return of premium” option that pays back most or all of the premiums paid if the insured person survives the full term. That payment can then be used however you wish.
Buy when you’re young. If you’re young and have no dependents, you may not think you need life insurance. However, your situation may change if you get married, have children, or become a primary caregiver to an elderly parent. Plus, generally speaking, the younger and healthier you are when you buy life insurance, the cheaper it will be.
Adopt a healthy lifestyle. People who partake in habits that are a health risk, like smoking, or who suffer from chronic conditions such as diabetes and heart disease, will pay considerably higher premiums than those who lead a healthy lifestyle and have no serious medical conditions. (As if you needed another reason to hit the gym!)
Purchase coverage from a strong provider. The purpose of life insurance is to have a financial safety net for your loved ones in the event that you aren’t around to care for them. It only makes sense that the company you are paying to provide this safety net has a proven track record of paying out claims and has survived the test of time. Make sure the insurer you’re considering has strong financial ratings before you sign on the dotted line. Start with trusted financial data from companies such as Moody’s and Standard and Poor’s.
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