The Average Cost of Life Insurance in Canada Per Month is Less Than You Imagine
8 Tips That Will Save You Thousands!
The Average Cost of Life Insurance in Canada Per Month way less than people expect.
As a discriminating customer, you aren’t satisfied with second best – but you also don’t want to overpay for you protection.
Why would you? In today’s world, we have tons of information at our fingertips. Hey, Google makes us sound like experts in almost any area of expertise.
You literally could spend days awash in information – doing NOTHING else. This is why we rely on experts in a particular field to help us navigate information we are not familiar with.
So why not use Policy Architects to help you sort through all the data that’s out there? To get you started I’m going to give you some tips that will help you get the BEST life insurance in Canada for the most affordable rates right now.
Who am I & Why Should You Take My Advice?
My name is James Heidebrecht and I’m the founder of Policy Architects. We are a boutique life insurance agency that serves the Candian market. From my experience, there’s a lot of misinformation out there about life insurance.
Everything from people thinking it’s a scam.. to the cost being out of reach. For your information both of those impressions are myths.
Far too many families are either underinsured or uninsured. If you have dependents and debt this is a recipe for disaster. Remember the cash your beneficiaries receive is finite.
Let’s face a simple fact. No one “plans” to die. I think most of us spend a lot of time in denial. Sure you can work out, eat healthily and have terrific genes but life happens…
…and when it does it creates a string of events that are catastrophic for your loved ones. If you’re a primary breadwinner and your paycheque stops, what happens to your mortgage payments in a few months when funds run dry?
Debt doesn’t evaporate when you pass on.
That’s why I love what I do – I offer financial security for your loved ones should a worst case scenario happen. In other words, I help people PLAN for their final days BEFORE it’s an issue.
Average Cost of Life Insurance in Canada Per Month
8 Ways to Get the BEST Life Insurance in Canada...AFFORDABLY!
To help you make the right choices when it comes to life insurance I am going to share 8 of my top tips! Don’t get me wrong this doesn’t replace the advice of a good independent life insurance agent but it sure can help steer you in the right direction!
1. Average Cost of Life Insurance in Canada Per Month Is Less Expensive If You Avoid Tied Agents Like the Plague
You can keep the average Cost of Life Insurance in Canada Per Month down if you use an independent agent.
Sorry tied agents. While I do love you and appreciate your job, you can’t possibly deliver the best life insurance policies in Canada each and every time.
So why would I make such an inflammatory statement?
Because it’s true. To get the best life insurance in Canada you should contact an independent life insurance agent every single time.
So what is a Tied or Captive agent? A Tied or captive agent is associated with one company and as a result, only sell the products offered by the company that employs them.
For example, if you talk with an insurance broker from Primerica,they will give you the best possible quotes for Primerica ONLY. Sadly, those rates are not the best you can get. In fact, their life insurance products are more costly generally…
…and if you’re a woman and happen to call a Primerica agent it will be even worse for you than your male counterpart.
They are gender neutral when it comes to underwriting, which means you will not see the benefit of being a woman in your final premiums. FYI: Women live longer thus most insurance companies pass those savings on to you.
Independent Life Insurance Agents Get You the Best Life Insurance in Canada
Always call an independent agent, like those at Policy Architects to get the best rates in Canada. We have access to all the top life insurance companies and we will find the one that works best for your particular circumstances.
If you read any of my articles one thing stands out across them all. Not all life insurance companies are created equal.
They all have their niches when it comes to underwriting. For your information, underwriting is the process your application goes through to determine your final rates.
So, in a nutshell, when you take a medical exam the results are sent to the underwriter. They apply the company standards to your case and give the final word as to how much you’ll pay every month.
Their findings depend on the risk they assess for insuring you.
If you happen to call a life insurance company that’s tough on diabetes you will pay a lot more than you would through one that has aggressive underwriting standards for diabetes.
Don’t ever underestimate these savings. Over the course of your term, they can be in the 10’s of thousands of dollars.
2. Average Cost of Life Insurance in Canada Per Month Is Less if You Prepare for Your Exam - Don't Avoid It!
The Average Cost of Life Insurance in Canada Per Month Is Less if you are prepare for your physical exam.
One of the biggest obstacles to getting people insured is delay tactics. I see it all the time.
Sure none of us wants to pay insurance premiums monthly and if you’re healthy, it seems like you have all the time in the world to purchase that policy.
Unfortunately, years go by while you “get ready” for your life insurance exam. So that small uptick you get from preparing for your life insurance exam is nullified by your procrastination.
Hey, you’ve hit two more birthdays and your premiums are more expensive whether you lost that 5 pounds or not.
So what’s the answer?
Take a couple of weeks before your life insurance exam to follow a couple of rules. First of all knock out the transfats, sugary snacks and fried goodies. Opting instead for lots of fruit, vegetables, fish and lean meat. This is good for your health overall no matter how you look at it.
“Eat less and move more.” Oh, such simple advice, but is maintaining a healthy weight really that simple? We live in an era of nutritional misinformation and opinions galore. These days, it seems that everyone feels qualified to offer expert advice on diet, exercise and weight loss.
With rising obesity rates all around the world, we are constantly searching for approaches to better manage our weight and our health.
Destress and Take Time for YOU
Get to the gym, go for a walk and meditate. Do whatever you can to destress your life. Again this is something you should do for yourself as a rule – not just because your life insurance exam is coming up.
Also, don’t forget to hydrate. In this busy world, it’s easy to forget to drink water. Try to get in 8 cups per day.
When you call up your agent makes sure they plan your exam for first thing in the morning. You can get it out of the way and there is less time for you to freak out 😉
The day before make sure you avoid caffeine, alcohol and your trip to the gym. Yep. All of these things may have a negative impact on your results. Just chill and eat healthily…
…and be sure not to do any late night snacking either!
Another great tip? Don’t eat in the morning and make sure you drink a couple of glasses of fresh water before the nurse arrives.
Before you know it the exam is over. It’s really simple and the good news is most people are healthier than they think.
NOTE* If you’re hypoglycemic or diabetic, different rules apply.
3. The Average Cost of Life Insurance in Canada Per Month Is Less
if You Quit Smoking!
One thing that I can say with 100% certainty is the Average Cost of Life Insurance in Canada Per Month Is Less if you DON’T SMOKE! You absolutely will pay higher premiums if you indulge.
So this section is a little more complicated. The statement above makes it sound like I’m discouraging smokers from getting life insurance…
…I’m not, but know that if you smoke you pay 2 to 3 times the amount a nonsmoker does. Sad but true.
The good news is when you quit for 12 months or more you’re no longer considered to be a smoker and you may even qualify for standard rates.
So what should smokers do who intend to quit…but still need life insurance today?
The answer is simple, start a smoking cessation program and document it with your family doctor as soon as possible.
Once we get you covered we can go back to the life insurance company one year later for improved rates. If you’re a smoker check out my latest article to find out more.
Whatever you decide to do, don’t put off getting covered because you smoke. This can be a damaging cycle that leaves your family unprotected.
4. The Average Cost of Life Insurance in Canada Per Month Is Less
If You Stay Aware of Life Insurance Birthdays & Key Years
Every year you age you’re a little closer to death as morbid as that sounds.
Life insurance is a business and it’s all about assessing risk. This is why older people pay more money than younger people for life insurance.
As a general rule, once you’re in your 50’s, you can expect your life insurance rates to increase approximately 9% each year.
Honestly, this is less important for you young millennials out there than it is for the boomers who have to pay quite a bit more after every birthday.
There are also very significant life insurance birthdays where longer-term coverage becomes unavailable. For example, once you’re over the age of 55, you are no longer eligible to apply for a 30 year term as it caps out at 85.
So if you’re in your early 50’s like I am and are looking for longer-term protection because you have a young family, make sure you apply for Term 30 before you turn 56.
You should also be aware that life insurance birthdays are different from yours.
For the purposes of life insurance coverage, whichever birthday you’re 6 months closer to is the age life insurance companies will underwrite you as. For example, if you are 59 and were born on October 12th, 1959 – after June 12th, 2019 you are considered to be 60 in life insurance years.
No Biggie - Right?...Wrong
Because our client is getting up there in years (he is a nonsmoking male in average health) his premiums will absolutely go up.
So 500K of coverage for 20 years at age 59 costs him $382 with Wawanesa.
By age 60 he pays $429.75 per month. While it may not seem like a staggering figure but if you do the math over 20 years it’s $11,448.00 of savings!
This is why some people are willing to backdate their premium payments to make sure they fit into the life insurance birthday window.
5. The Average Cost of Life Insurance in Canada Per Month Is Less
If You Plan AHEAD!
I guarantee, the Average Cost of Life Insurance in Canada Per Month Is Less if you plan ahead.
Did you know the amount of coverage you need changes over time?
This is why a financial needs analysis is so important. It’s easy to overlook how things may unfold over the years.
To be perfectly frank, I would say this is one of the biggest reasons people are underinsured. They do their planning with no vision for the future.
So let’s say a client is looking for coverage at age 30 because they’re thinking ahead. They know premiums are going to way less expensive early in life.
The rub? They select a life insurance agent who is really green. Sadly this agent relies solely on the client’s financial guestimate to pick out the amount of coverage.
This particular client opts for $500K for 30 years – which is awesome. They have a very young family and no mortgage so, in fact, they are currently over insured. But this is not the end of the story…
Life Changes and So Do Your Needs for Coverage
This client has a promising career in technology. He goes on to own his own company and buys a home in Toronto for $1.5 million by the time he is 38.
Oh, and did I mention he has another child with his second wife?
As you can see his needs are suddenly ginormous compared his current coverage. He is also a stressed out guy with some medical issues so he can kiss that preferred plus rating goodbye and say hello to standard.
Which means if he applies for additional coverage at this point he is going to pay a lot more.
Now let’s take a different path At Policy Architects we discuss his future financial goals to make sure that $500K is enough coverage.
This discussion uncovers the fact that his profession pays a pretty penny and that he based his policy request on his current circumstances NOT where he planned to be in 10,20 or 30 years.
Of course, we aren’t psychics so predicting his divorce isn’t in the cards. That being said, we could have guessed that his coverage would be inadequate further down the road considering his professional goals.
Which brings me to the next money savings tip…
6. The Average Cost of Life Insurance in Canada Per Month Is Less
if You Layer Coverage When Needed
So what if you have an increased need for life insurance in the first 10 years of your policy and those needs drop off as you pass through the decades?
This is a typical situation for most families. They take out coverage when their kids are young and their mortgage is at its highest point.
As time goes on they pay down their debt, the kids move out and their needs wind down.
The thing is you want to get insured while you are young and healthy. Now what? Just jump into a 30 year term with a high face value and bite the bullet?
Nope! There’s another money-saving way to approach this situation.
Take out a set of policies that drop off as you outgrow the need.
For example, our 40-year-old client needs $1 million in coverage for 20 years. His kids are already 5 and 9 so this takes him through their college years and into early adulthood.
He also has a 30 year amortized mortgage he’s been paying down and with the kids gone, he wants to make sure he has money to cover the remaining mortgage and help out his wife.
The solution? He buys a $500,000 20 year term policy and a $500,000 30 year term policy. So in effect, he has $1 million of coverage for 20 years and then $500,000 of coverage for the next ten years.
Layering two policies in this way will save him at least 30% on his life insurance.
7. The Average Cost of Life Insurance in Canada Per Month Is Less
If Stay Away from No Medical Exam Life Insurance When You're Healthy!
YES the Average Cost of Life Insurance in Canada Per Month Is Less if you stay away from no exam coverage when you’re healthy.
No matter how you slice and dice it, a no medical exam life insurance policy is always going to cost you way more than a traditionally underwritten policy if you’re in good shape.
This is because the life insurance company has limited information about your situation – which means you’re riskier to insure. The result? Premiums increase the less information you offer.
Don’t get me wrong, no medical exam life insurance is a terrific product and it certainly has its place. For example, I think small final expense plans are great in the right situation.
It also works a charm if you have serious medical issues. You can buy no exam coverage to make sure you’re protected and then try to obtain underwritten coverage to see if you can do better.
If you do, you can drop the no exam protection in favour of the better deal. It also may be less expensive than getting rated.
This is why you absolutely have to speak to the independent life insurance agents at Policy Architects. We can help walk you through this process.
8. The Average Cost of Life Insurance in Canada Per Month Is Less
If You Buy Term & Invest the Rest in the Right Situation
Did you know there are two basic types of life insurance? Yes indeed Pemanent life insurance and term life insurance.
Term life insurance is VERY affordable and protects your family through the most vulnerable periods. Honestly, term works for most people most of the time.
There is a caveat however, it does not provide protection until the day you die and there is no cash value accumulation feature. That’s left for permanent insurance such as whole life and universal life insurance.
So why do I recommend buying term for savings?
Permanent insurance is far more expensive. This is because you definitely receive a payout as long as you pay your premiums throughout your lifetime.
The thing is for me – life insurance isn’t an “investment” per se. For the most part, there are other places to park your money if you’re looking for a return.
Don’t get me wrong there are exceptions to this rule. If you’re in a very narrow class of people that includes those who have:
- A need for tax shelters because you’ve exhausted all other options
- A child or children with special needs
- Business interests that require permanent coverage
…then permanent life insurance may be a good fit for you. If not, I would highly suggest buying term coverage and investing the money you save.
Also as an aside most term policies contain a conversion feature that allows you to roll the policy over to permanent coverage without an exam if you still need protection.
Be sure to check with your agent to make sure this feature is available to you.
The Average Cost of Life Insurance in Canada Per Month Is Less If You Use Policy Architects
The Average Cost of Life Insurance in Canada Per Month is less if you use the right agent. This is really the key to savings.
As you can see there are a number of ways you can save cash and get the best life insurance in Canada. The biggest mistake people make is going online to get quotes and thinking all life insurance companies are pretty much the same.
Nothing is further from the truth.
If you select a well seasoned independent agent that has access to numerous resources, you may save 10’s of thousands over the course of your policy.
Little details like performing a needs analysis, shopping your information to different underwriters to get their opinion regarding a specific set of circumstances and selecting the right amount of coverage at the right time can really make a huge difference.
Plugging your details into an automated system, speaking to a call center agent or opting for a tied agent simply won’t get you the results you deserve.
Buying life insurance should be a very personal experience and we specialize in boutique service. If you are looking for affordable protection, call us today for a life insurance quote!