Use a Broker to Compare Term Life Insurance Policies

June 12, 2017
When it comes to term life insurance, the most important thing (beyond the necessity of it) is buying the right policy for your situation and getting that policy at the right price.

This is why you should always use a broker to compare term life insurance policies.

Term life policies are the same in concept. A life insurance company will insure someone’s life for a set amount of money; for a set length of time. They provide the coverage and the insured pays a monthly premium for the benefit.

Although this sounds straight forward, it isn’t. This is the reason why each life insurance company is it’s own entity and why they compete with each other. Thus, they each have their own term life insurance products, their pricing is different, and they use their own underwriting process.

All these play a role in how much you pay, and the type of product you’re getting.

Types of Life Insurance policies:

Level Term Life Insurance

The death benefit portion stays the same for the term of the policy. The premiums may also be the same for the entire period, or they may increase over time.

Decreasing Term Life Insurance Policy

The amount of the death benefit decreases over the length of the term. The premiums usually stay level throughout the term.

Yearly Renewable Term Insurance

The death benefit stays the same for the term, but our premiums will increase every year. Decreasing term has a lower initial premium than level term life insurance, but is it sufficient for your needs? If you’re comparing policies and choose one just because it has a lower premium to start with, you may find that you’re not buying wheat you thought you were.

Life Insurance Agent VS Life Insurance Broker

Life companies and agents have one goal – to get you to buy their house policy. This doesn’t make them evil (they’re also concerned about your well being), it just makes them biased.

A life insurance broker works with many life insurance companies so their only focus is their customers. As well, they keep up to date with the changes in policy offerings, pricing, and underwriting of every company they deal with. When you use a broker to compare term life insurance policies you gain the ability to get the most for the dollars you spend.

Shelter Bay Financial Corp., is an online life insurance brokerage firm and we work with the top life insurance carriers in Canada. We know all the ins and outs of their products and prices.

To learn more, please call toll free 1.888.498.5288.

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