Affordable life insurance exists
Get the protection you want without breaking the bank
More than 21 million Canadians have life insurance [Note 1]. Why don't the others have them? More often than not, they cite the cost. Is life insurance so expensive you can afford to live without it?
In fact, there are many customizable and affordable life insurance solutions available to meet the needs of your family. Here are seven tips for choosing life insurance that fits your budget:
Pay according to your needs. Before making your choice, assess your standard of living and your financial obligations with an experienced financial advisor. Maybe your insurance needs are less than you think.
Find out about multi-protection discounts and hybrid protections. Some insurers offer reduced premiums if you choose more than one coverage. Sometimes they also offer interesting add-ons, or “hybrid” protections, such as life insurance combined with critical illness protection or long-term care protection. So you are better protected, and it is more economical than buying the two protections separately.
Consider term insurance. If your obligations are limited in time - for example, you still have 15 years to pay off your mortgage - you may only need protection during that time. Term insurance generally costs much less than permanent insurance. Choose a policy that is renewable or convertible to permanent insurance if your needs change.
Pocket the refund of premiums. Some term insurance has a "refund" option: the insured is returned the amount of premiums paid, in part or in full, if he survives the term of coverage. You can then use this money as you see fit.
Take insurance when you are young. Young, with no dependents, you might not think you need life insurance. However, your situation may change with a marriage or the arrival of a child, or if you become the primary caregiver of a parent. Not to mention that, generally, the younger and healthier you are when you buy life insurance, the less it will cost you.
Adopt a healthy lifestyle. People who have unhealthy habits, such as smoking, or a chronic condition, such as diabetes or heart disease, will pay much higher premiums than those with a healthy lifestyle and no serious illness. (Did you really need another good reason to exercise?)
Choose the protection of a well-established insurer. Life insurance is first and foremost a safety net for your loved ones if you are no longer able to take care of them. It goes without saying that the company offering you this peace of mind must have a solid history in terms of indemnifying its policyholders, as well as a remarkable longevity. Before signing, check that the insurer has an excellent credit rating. Check out financial data from trusted organizations like Moody's and Standard & Poor's first.
An advisor can assess your financial needs and recommend the solution that best suits your priorities.
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