Finding affordable life insurance isn’t always an easy task. This kind of asset offers a variety of different avenues to consider, and every person will pay a different amount.

While some people might be able to receive low insurance rates, others might be quoted much higher. A lot of this is due to individual factors, such as age, gender, medical history, lifestyle, and more.

While it might not be possible to find a rate as cheap as someone else, there are ways to get better deals on life insurance.

For those who are seeking affordable options, the following are helpful tips to help reduce premiums:

  1. Use a Term Life Policy 

 

good deal

Basic knowledge about life insurance includes the fact that there are two main types of insurance: Term Life and Permanent Life.

One of the biggest differences between the two is that term life insurance tends to be a much more simplistic, more affordable option. Many families and individuals choose this option so that they can still manage their other expenses.

Some of the best term life insurance policies for 2018 include policies from State Farm, Voya and AIG.

For those who have not yet signed up for life insurance, the main way to get a much better deal is to choose term life. For those who have already signed up for permanent life insurance, it is not possible to convert to term.

Fortunately, there are some more options for finding good deals.

  1. Shopping Around 

The other most popular way to get a good deal on life insurance is to shop around for quotes. Shopping around means talking to a variety of companies to find out what they can offer and what it will cost.

This makes it easy to compare the options and to choose the policy that is best suited to the individual. Some companies will even compete to offer the best quote, so it helps to be patient with deciding.

  1. Get Quotes Online

For those who don’t want to speak with individual companies about their policies, getting quotes online is another option.

There are numerous websites that collect your information and provide multiple quotes from different companies within a few minutes. While this is a very simple process, it’s good to keep in mind that doing too many checks could affect credit scores.

  1. Avoid One-Company Agents

There are some insurance agents who have a clear preference for companies they represent. These agents don’t exercise people’s options and usually go with companies they have a personal preference for.

In these cases, rates will likely be higher in order to provide them with a better commission. A better agent is someone who searches for all of the best options.

In this case, they’re truly looking for the best deal and will provide clients with way more to choose from. Avoiding one-company agents is a great way to get a better deal.

  1. Say ‘No’ to Additional Insurance

say no

For those who want exceptionally affordable insurance, it’s a good idea to say no to additional insurance. Some people opt to add on extras that are called ‘riders’, which make their premiums higher.

Riders are things such as insurance for children, death benefit acceleration or the ability to convert to permanent down the road. The add-ons can be helpful. However, in the case of getting the best deal it is best to leave these off.

  1. Consider bundling

For the most part, life insurance companies offer more than just one type of coverage. Some of the best life insurance companies have a variety of coverages including home, auto, life and disability insurance.

By bundling more than one policy with the same company, it’s common for customers to receive a discount. Lots of people choose to do this, especially if they’ve been with a company for a long time.

To get a better deal on insurance, it might be worth it to move all policies over to one individual company. This also makes it easier to pay bills and keep track of your premiums.

  1. Research the Company

There are more than 30 insurance companies in Canada, many of them with long-standing success in the industry.

Because life insurance is a long-term gig, customers should be sure that their company will be able to pay out when the time comes. Companies that have strength and stability in the industry will be able to afford the lump sum customers are paying for.

No beneficiary wants to find out that their loved one’s insurance company can’t afford to pay them the proper lump sum. Whether a policyholder gets a good deal or not makes no difference if the company doesn’t exist anymore.

  1. Start Early

healthy lifestyle

When it comes down to it, the younger and healthier a person is, the better their insurance rates will be. This has some exceptions of course, such as whether or not the person is a smoker or if they have dangerous hobbies.

For the most part, however, insurance companies offer some of the lowest rates to people who are young and in good health.

For those who want to get a better deal on life insurance, the best option would be to sign up early while maintaining a healthy lifestyle.

Conclusion

Reports have shared that a lot of Canadians are underinsured. Although 63% have some type of coverage, they don’t have a policy that covers unforeseen life events.

Those who are looking for better deals should certainly shop around. It is entirely possible to get better rates while maintaining a solid amount of protection.

Life insurance is a great asset to have, especially for those with loved ones who are financially dependent on them. Canadians with life insurance are capable of paying affordable rates, if only they consider the tips suggested.

Resources:

https://www.thebalance.com/best-term-life-insurance-policies-4158287
https://en.wikipedia.org/wiki/List_of_Canadian_insurance_companies
https://www.insurancebusinessmag.com/ca/news/breaking-news/most-canadians-are-underinsured-study-62245.aspx