How To Compare Life Insurance

Canadians have been having difficult conversations with their family since the global pandemic hit, according to a survey by Ipsos. 56% of parents have been talking over the future of their children, debt and how secure the family finances are in current conditions.

Over 25% of those surveyed said they didn’t believe their family would be able to meet financial obligations if they were to pass away. Many parents fret over the cost of childcare, housing, food, clothing and basic necessities. While 63% believe that life insurance is great, over one-third of Canadians don’t have life insurance coverage.

What Is Life Insurance?

When someone you love passes away it can leave an emotional and financial hole for those left behind. That’s where life insurance comes in. It helps you provide for and protect your loved ones if something was to happen to you.

Life insurance policies offer a death benefit that can help your family pay for funeral and burial expenses, mortgage payments, debts, and any other final expenses. While the amount your beneficiaries receive varies depending on the insurance policy, knowing that you have life insurance can provide you and your loved one’s peace of mind.

Many people buy life insurance to ensure that their dependents are looked after in their absence. While this is an important reason to seek out a life insurance policy, children cannot be paid out a death benefit from your insurance company. That’s why it’s important to clearly understand how life insurance beneficiaries work and how to designate one.

Insurance can provide protection for the next generation, but it also ensures that your family’s financial needs are taken care of when you’re gone. The death benefit paid out to your beneficiaries can be used to cover whatever they want, including mortgage payments, college tuition, credit card debt, and any other financial responsibilities that were left behind.

When Should I Buy Life Insurance?

Many Canadians look for life insurance coverage when they go through a change in their circumstances. This may be marriage, a new baby, or even a divorce.

There is no set time to buy life insurance. You’ll be able to buy it whenever you’re ready. However, if you buy it when you’re younger and in your best health, you’ll pay less in premiums than if you wait until you’re older or have health conditions.

How Much Does Life Insurance Coverage Cost?

How much you pay for your life insurance premium differs depending on the type of life insurance you buy. For example, term life insurance is the least expensive but doesn’t offer high death benefits. Moreover, when they expire, your life insurance premiums will increase.
Permanent life insurance policies and term life insurance policies will vary quite a bit so you should always compare quotes.
Life insurance companies take several factors into account as they are deciding on your life insurance application. These include your

  • Age – the younger you are the lower your life insurance premiums.
  • Gender – women tend to live longer than men and will usually pay slightly less for life insurance.
  • Medical history – if you have a medical condition or illness you’ll pay more for life insurance.
  • Lifestyle – applicants with riskier lifestyles, such as those who smoke, can also expect to pay more for life insurance.

How To Get The Lowest Rates

Life insurance premiums are based on many factors and shopping around to compare life insurance policies can help you find a rate that fits your budget. There are some other things you can do to ensure you get the best rate, such as:

  • Opt for term life insurance over whole life insurance. Term life insurance will always have lower premiums, but it’s key to remember the policy will expire and then your premiums will increase.
  • Apply for a life insurance policy as soon as you can as the younger you buy into a policy, the lower your premiums will be, and with term life insurance policies, your premiums stay the same through the term.
  • Don’t smoke or if you do, quit now. Smokers pay some of the highest life insurance premiums because they present a higher risk of death than non-smokers.
  • Optimize your performance on the medical exam.

Types of Life Insurance

Life insurance coverage isn’t just a one-size-fits-all solution. There are different types of life insurance designed to fit different needs and lifestyles. One is term life insurance policy and the other most common is permanent life insurance or whole life insurance. Each type of life insurance has its own benefits and premium rates.

Term Life Insurance

A term life insurance policy offers coverage for a period of time, such as 10 or 20 years. It may even cover you to a specific age such as 65 years. Your premiums will not change during this time.

When you reach the end of the term, your life insurance contract is up. At that time, you can decide to buy more term life insurance or consider a different insurance policy, such as permanent life insurance or universal life insurance.

A term life insurance policy is the most common form of life insurance policy because they are the most affordable. Many also don’t require you to take a medical exam to be approved. However, because they are only in effect for a short time, they may not be the best fit. Talking to a life insurance broker can help you determine whether term life insurance is the right life insurance policy for you.

Permanent Life Insurance

Permanent life insurance is sometimes called whole life insurance and it lasts for your entire life. That is, unlike term life insurance policies, so long as you make your payments, you’ll have life insurance. Moreover, your premiums will remain the same, making it easy to budget for and estate planning.

Whole life insurance is a unique type of permanent life insurance. With whole life insurance, part of the money you pay in premiums gets put into a cash-value account. If you decide to cancel your insurance policy, you’ll get that money back. It’s sort of like having life insurance with a savings plan. And an added bonus is that it is tax-free. However, permanent life insurance will have higher premiums than term life insurance.

Universal Life Insurance

Universal life insurance policies are similar to whole life insurance, but they have a long-term investment option. You can indicate to your insurance company how you would like the cash value of your policy invested, for example in stocks, bonds, or mutual funds.

Some policyholders use this to save for retirement or set aside money for another day. The drawback is that this type of life insurance requires more work on your part. It’s not something you want to get into unless you’re savvy at investing. Your premiums can also change throughout the life of the policy.

How To Get A Life Insurance Quote

As you work out which policy is best suited for you, it’s vital to compare life insurance quotes from different insurance companies. But that doesn’t mean you need to make several calls. Getting various life insurance quotes can be done by contacting a life insurance broker at Shelter Bay or filling in an online form on our website.

We’ll be able to give you the best life insurance quotes in just a few minutes. Once you find a life insurance policy you like, we’ll also be able to guide you through the application process, including the medical exam.

Benefits of Comparing Life Insurance Rates

Getting some quotes for life insurance online offers you a number of advantages, including

  • Don’t have to leave the comfort of your own home
  • Can get quotes anywhere, anytime
  • Save time as you won’t have to run around from insurance company to insurance company
  • You’ll potentially save money too by finding the right life insurance the first time.
  • Provides lots of choices. Getting life insurance quotes online means you’ll be able to find the best coverage for your needs.

Know Your Specific Life Insurance Needs

Purchasing a life insurance policy to protect your family is the right thing to do. It’s important to assess what you need and want from a life insurance policy. Ask yourself some questions, such as
There are various life insurance products to choose from that suit your needs and goals.

  • How much will my family need if I pass away?
  • What amount of premiums can I afford?
  • Are there large financial burdens that will hinder your loved ones, such as credit card debt or loans?
  • What are upcoming costs for my family that the death benefit could cover, like college tuition?
  • How much should I include for inflation and taxes?
  • Do I have enough to cover my funeral and burial?
  • What about legal fees to sort out my estate? Can my life insurance policy proceeds cover it?

What Factors Do Most Insurance Companies Look At?

There are different factors that life insurance companies want to know and will play a role in determining your coverage and the premiums. These include:

  • Medical history, specifically any health conditions
  • Prescription medication you take
  • Medical history of your immediate family (parents, siblings)
  • Risky lifestyle behaviours (drinking, smoking, drugs)
  • Risky hobbies or activities you engage in (skydiving, bungee jumping, etc.)
  • Dangerous jobs or ones that have a higher than average hazard rate
  • Criminal record
  • Financial problems, like if you’ve declared bankruptcy

Know The Ins and Outs of A Life Insurance Policy

There can be a lot of fine details with a life insurance policy, and you’ll want to understand them so you don’t risk voiding the policy. One of the most crucial parts of getting life insurance is the medical exam. It’s important to be honest with your insurance company about your health conditions and risks for example if you smoke.

Customers who buy a life insurance policy but never disclose these things may be putting their family’s protection at risk. If you pass away and your life insurance company uncovers the deception, your beneficiaries may end up with nothing. You could pay thousands into a life insurance policy but never benefit.

How To Apply For Life Insurance

After you have a life insurance policy quote that works for your budget, you need to make a formal application for insurance coverage. Your application will begin with a questionnaire by one of our Shelter Bay insurance brokers. We’ll ask you some brief health and lifestyle questions that help the underwriters determine the best life insurance premium for you.

Some life insurance companies require you to complete a medical exam before they offer you an insurance policy. While it can seem intimidating, the medical exam is actually very basic. It’s just to get an idea about your health history and any medical conditions you may have.

After you’ve completed the application process and your medical exam results are in, the life insurance company will either approve you for life insurance coverage or deny you. If you are denied a life insurance policy from an insurance company, it doesn’t mean you’ll never get a life insurance policy. You can always make an application to another insurance company. Talk with your Shelter Bay insurance agent and we can help you find an insurance company that will offer you life insurance coverage.

Life Insurance Application Process

There are three ways of underwriting insurance policies. The application process will be determined by the underwriting your life insurance company uses for the policy you want to purchase.

Full Underwriting

There are three ways of underwriting insurance policies. The application process will be determined by the underwriting your life insurance company uses for the policy you want to purchase.

Accelerated Underwriting

There are three ways of underwriting insurance policies. The application process will be determined by the underwriting your life insurance company uses for the policy you want to purchase.

Simplified Issue

This underwriting process is very, very basic. You won’t be asked to undergo a medical exam and there will be no third-party resources supply information about you. Rather, you’ll be approved or denied based on how you answer questions about your lifestyle and your health. However, your premiums will likely be higher because the insurance company doesn’t have as much information on you as the other two forms of underwriting.
You should look at life insurance rates with the help of independent life insurance providers/brokers.

Why Buy Insurance From Shelter Bay Financial?

At Shelter Bay, we understand life insurance. Our brokers have over 200 years of collective experience in the industry. We also work for you, not an insurance company. That means you can be sure that we’ll work with you to determine your needs to find the best policy for you.

Comparing life insurance may seem complex. Let our Shelter Bay brokers help you make sense of the policies, and details of life insurance quotes. Contact us today.

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