If you’re considering life insurance, don’t let the cost be a barrier to securing coverage. While you may understand the value of peace of mind, everyone wants to keep more of their hard-earned dollars where they can see them. The good news is you can likely get the coverage you need to protect your loved ones without hurting your wallet! We’re sharing strategic ways you can get reliable life insurance coverage within your budget in this post.
Here are four smart tips for saving money on life insurance in Canada:
Purchase when you’re young & healthy.
As you get older, the cost of life insurance typically increases because you are at a higher risk of being diagnosed with chronic health issues. Life insurance providers view those with existing health issues as higher risk, and thus, you need to pay a higher premium to secure coverage. So, the lesson is: the sooner you purchase life insurance in your life, the more you’ll save on premiums. As a young, healthy person, you could purchase a permanent life insurance policy and lock in a cheap life insurance policy with a low premium that stays the same throughout your life, despite any health issues!
Only purchase the coverage you need.
One size rarely fits all, so look for a plan that aligns with your specific needs, and you’re likely to save money! Get advice from an insurance advisor on the amount of life insurance coverage you’ll need and the length of time you’ll need it. This research will help you decide on a suitable amount that you feel confident in and can afford.
How do your loved ones rely on you financially? If you’re in a later stage of your life, you may not need as much life insurance coverage as you did earlier in your life. For instance, if you’re close to retirement and have already paid off your mortgage, a large death benefit from a life insurance policy may not be necessary. Meanwhile, if you are a newlywed or recent parent, life insurance may be top of mind. Higher coverage amounts could help cover your mortgage and leave some funds for your young childreGet in the practice of periodically reviewing your insurance coverage amount and policy to ensure that you’re not overpaying for more protection than you need at this stage of your life.
Purchase the right type of life insurance policy.
The right type of life insurance policy meets your coverage needs and is affordable for you. Permanent life insurance is typically a more expensive option since it provides lifetime coverage at a fixed premium. Term life insurance, in contrast, is both affordable and straightforward, paying out a death benefit if you pass away within your term period (generally 10, 20, or 30 years).
Yet, if you have any health changes, permanent life insurance premiums may end up saving you money over time. Meanwhile, term life insurance needs to be renewed at the end of each term (10, 15, 30 years), typically at a higher premium cost, and it will only payout if you pass away during the term. This means that the more affordable option will depend on your circumstances and life insurance goals.
Note that many insurance companies will offer very affordable term life insurance plans that can be eventually converted into permanent life insurance when you’re ready to make a further investment. Talk to a life insurance provider like Canada Protection Plan about the right type of life insurance policy that will make the most financial sense for you.
Make healthy lifestyle choices.
There are plenty of healthy habits you can adopt that will help to decrease your life insurance premiums. Your life insurance provider will ask you questions related to your lifestyle habits during the application process, including alcohol consumption, smoking, weight, exercise, and more. Being a smoker alone can dramatically increase your premiums since this habit raises your risk of many chronic health issues.
If you’re up to the challenge, changing some of these habits can help to reduce your premiums. For example, after you purchase your term life insurance policy, you can take steps to lose weight and cut your smoking habit, so the next time you renew your policy, it could lead to lower premiums. Losing weight can also help lower cholesterol and lead to healthier blood pressure – a win for your body and a win for your wallet!
As a budget-conscious person, the good news is that it’s certainly possible to secure life insurance coverage at a reasonable cost. There is no greater peace of mind than knowing that your loved ones have the protection they need at a price you can feel good about.
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