Seeking ways to make life insurance more affordable? You’re in the right place! With a plethora of top-rated life insurance providers in Canada, numerous strategies can help you cut down the cost of your life insurance premiums. Here are eight highly effective tactics.
- Avoid Delay in Obtaining Coverage
The price of life insurance rises with age. Therefore, postponing the purchase of life insurance will only make it costlier. It’s essential not to delay securing life insurance coverage. An analysis of monthly life insurance rates from a popular provider clearly illustrates the potential expense of life insurance as one ages. Nonetheless, while buying life insurance early is cheaper, it’s essential to evaluate if the coverage benefits you. Young adults have several reasons to consider life insurance, but your financial objectives should guide your decision to commit to a policy. - Consolidate Insurance Plans
Consolidating insurance plans and covering multiple people under one policy is an effective cost-saving strategy. Many leading Canadian insurance providers offer diverse coverage options, including life insurance, critical illness insurance, disability insurance, travel insurance, home insurance, auto insurance, and more. By consolidating various policy types with one provider, you could enjoy discounted rates and the convenience of managing all your policies from a single point. - Opt for Shared Coverage
Shared coverage is typically more cost-effective than individual coverage, making it a viable strategy to save on life insurance. One approach is via a group life insurance policy, often provided by employers. These policies cover multiple individuals under one policy, resulting in more affordable premiums. Another option is joint life insurance, which covers two people (usually spouses) under one policy. It’s notably cheaper than two separate policies and is also ideal for estate planning. - Decline Unnecessary Riders
Life insurance riders, or additional benefits that can be added to a life insurance policy, may include extra coverage for specific health conditions or dependants. While these options can be attractive, they can also be costly. To save on life insurance, evaluate whether a life insurance rider justifies the extra cost. - Maintain a Healthy Lifestyle
Life insurance providers base premium costs and maximum coverage amounts on the applicant’s risk profile. If you have a health condition like diabetes, are overweight, or smoke regularly, you will likely face higher premium costs than a healthier, non-smoking applicant. To reduce life insurance premiums, try to maintain a healthy lifestyle, manage any pre-existing health conditions, quit smoking and excessive drinking, maintain a healthy weight, and have regular check-ups with your doctor. Demonstrating that you are a low-risk applicant can help you secure preferred life insurance rates. - Opt for Annual Payments
Paying for life insurance premiums annually is another cost-saving strategy. Monthly premiums, while more manageable, often add up to a higher total amount than annual payments. This is because insurance providers typically offer a discount to policyholders who pay their premiums annually. However, it’s crucial to plan for this yearly payment to prevent your policy from lapsing. - Choose Term or Term 100 Life Insurance
Opting for a simple and affordable policy type can also help save on life insurance. Term life insurance, which provides coverage for a specified period, is a great option for those who expect their coverage needs to change over time. It’s also the most affordable and common type of life insurance in Canada. For cost-efficient permanent life insurance in Canada, consider Term 100 life insurance, which doesn’t have an investment component but provides straightforward coverage for the insured’s lifetime with premiums paid until the policyholder’s 100th birthday. - Consult a Life Insurance Agent or Broker
Engaging a life insurance broker is one of the best ways to save on life insurance. Unlike insurance agents who work for specific providers, life insurance brokers represent their clients and can help them find the best rates from multiple insurance providers. They provide expert insights, advice on which policies you will likely qualify for, and help find the most affordable options.
By eliminating unnecessary expenses and making informed decisions, you can significantly reduce the cost of life insurance. Consider seeking advice from an expert financial advisor for a more tailored approach. In Canada, we compare policies and quotes from the best life insurance companies to find the right policy for you. We provide expert life insurance solutions, including no medical life insurance, critical illness insurance, disability insurance, term life insurance, and permanent life insurance.
FAQs About Affordable Life Insurance
What is the least expensive type of life insurance?
Term life insurance is generally the least expensive option. It provides coverage for a set period of time and does not include a savings component. Its simplicity, flexibility, and affordability make it the most popular policy in Canada.
How can I improve my health to lower my life insurance premiums?
Regular exercise, healthy eating, and medical check-ups can help improve your health and lower your life insurance premiums. Quitting smoking and reducing alcohol consumption can also positively impact your premiums.
Is shopping around for the best deal worth the effort?
Absolutely. Just like any other purchase, shopping around to find the best deal can save you a significant amount of money, as rates vary among different insurance providers. Comparing life insurance policies can save you hundreds or even thousands of dollars over your policy’s lifetime.
