So you have decided that it might be time to buy life insurance. Most people do it when something happens in their family and I hope it was a happy event like having a baby or buying a home but for some it is the reality of seeing what happens to the family when a friend dies. When you buy life insurance it is one of the most selfless things you can do as you will not be around to benefit in person but your family will thank you for caring enough to do it for their lifetime.
How can you save money when buying life insurance? Life insurance is like many other things you buy. If you purchase a ten year term policy, it will be cheaper and save you money over those then years compared to a 20 year term or even a permanent policy where you own the policy and know that eventually it will pay out. So the first thing you need to do is figure out why you need the insurance and for how long will you need it. This will help you buy life insurance that is the best value over time but not necessarily the cheapest over the first ten years
Many will say purchase a ten year term which is the cheapest for the first ten years but what happens in ten years if you still need the insurance. You will simply go out and purchase another ten year term policy and they keep doing that every ten years until term insurance becomes too expensive and you are no longer are insured. For some, it works out because when they can no longer afford it, the house is paid for, the kids are on their own, they have a good pension lined up and all looks rosy.
We talk to many people who are now in their fifties and sixties and this term insurance is getting expensive and many now have health issues which make it even more expensive to buy life insurance and for a few it is unavailable for health reasons. It is cheaper to purchase a ten year term policy as the insurance company gets to review your health again every ten years which reduces their risk of having to pay out. It can save a lot of money over your lifetime if you buy life insurance when you are young that will not just meet your needs for the next ten years but for your lifetime.
We frequently sell some permanent insurance as a base and then add some ten year and 20 year term insurance on top so that the insurance you need starts high and decreases over time but you do not have to qualify every ten years.
Like jug milk, the more life insurance you buy the cheaper it is per $1,000 of insurance with the price breaks at $ 250,000 and $500,000 and $1,000,000. Keep this in mind when you buy life insurance.
Companies offer discounts of up to 30% for really healthy people with healthy lifestyles and healthy parents and siblings. A few offer these discounts for people who are taking medications like cholesterol medications if it is working but others don’t so make sure your advisor is experienced with what the industry calls preferred underwriting. Ask about this when you buy life insurance.
If you pay annually you can save a lot of money with most companies. The savings can be as much as 9% and it is hard to generate those returns.
Finally, there are small policy discounts with many companies when you buy life insurance for more than one person at the same time. A few will offer small discounts on other types of life insurance as well.
One company that has been helping people buy life insurance for 10 years with over 5000 clients is life insurance Canada. You can trust them to find you the best policy(s) that will save you money either in the short or long term or perhaps a combination of both.