8 Ways to Save on Life Insurance

If you are interested in affordable life insurance but don’t know where to start, don’t worry! With so many top life insurance providers in Canada, there are many ways to save money on life insurance. From bundling insurance options to leading a healthy lifestyle, here are the top 8 ways to save money on life insurance premiums today.

1. Don’t Procrastinate Getting Coverage

Life insurance costs increase as you age, meaning the longer you put off buying life insurance, the more expensive it gets. This is why it’s so important not to procrastinate getting life insurance coverage. If you look at the figure below outlining monthly life insurance rates from a popular insurance provider, it’s apparent how costly life insurance can get as you age:

However, while it is cheaper to get life insurance at a young age, it’s still important to consider if you will benefit from coverage. There are many reasons young adults can benefit from having a life insurance policy, but it’s still important to consider your financial goals before committing to a policy.

2. Bundle Insurance Plans

If you are looking to save money, then bundling insurance plans and covering multiple people under one policy is a great way to do so. Many of the best insurance providers in Canada offer multiple types of coverage. This includes life insurance, critical illness insurance, disability insurance, travel insurance, home insurance, auto insurance, and more. By bundling multiple policy types through an insurance provider you may be offered discounted rates as well as the convenience of having all your policies in one place.

3. Apply for Shared Coverage

Applying for shared coverage is a great way to save money on life insurance as it is typically a more affordable option than individual coverage. One way to do this is through a group life insurance policy. These policies are often offered by employers and can cover multiple individuals under one policy, resulting in more affordable premiums.

Another option to consider is joint life insurance, which provides coverage for two individuals (usually spouses) under one policy and is typically more affordable than purchasing two separate policies. This type of insurance is also a great option for those interested in estate planning.

4. Opt-out of Unnecessary Riders

Life insurance riders are additional benefits that can be purchased and added to a life insurance policy. This may include additional coverage for certain health conditions and extra coverage for children and dependants, among other helpful benefits. However, while these options may be enticing, they can also be expensive. If you would like to save money on life insurance, it is important to consider if a life insurance rider is worth the additional cost.

5. Lead a Healthy Lifestyle

When determining premium costs and maximum coverage amounts for an applicant, life insurance providers base these numbers on the risk the applicant poses to insure. For example, an applicant diagnosed with a health condition such as diabetes, who is overweight, and who smokes regularly will have higher premium costs than an applicant in better health who does not smoke. This is because certain health conditions and lifestyle choices such as smoking can be harmful to an applicant’s health.

To save money on life insurance premiums, it is important to lead a healthy lifestyle when possible by managing any pre-existing health conditions, quitting smoking and excessive alcohol consumption, maintaining a healthy weight, and getting regular check-ups with your physician. By taking these steps you can demonstrate to an insurer that you are a low-risk applicant and get preferred life insurance rates.

Here is an outline of factors that may increase your risk to insure in Canada:

6. Pay annually

Another great option is to save money by paying for life insurance premiums annually. Monthly premiums are a great option for those who’d rather pay smaller sums over time, however, monthly premiums often add up to a higher total amount than annual payments. This is because life insurance providers often offer a discounted rate to policyholders who pay for their premiums annually. However, if you would like to pay for your premiums annually it is important to plan for this yearly payment and ensure you have enough saved up by the time the payment is due so your policy does not lapse.

7. Opt for Term or Term 100 Life Insurance

Another great way to save money on life insurance is to opt for a straightforward and affordable policy type. Term life insurance is a type of insurance that offers coverage for a specified period of time, typically 10, 20, or 30 years. This is a great option for those who expect their coverage needs to change over time and would prefer the option to make changes to their policy at the end of the coverage period. This is also the most affordable type of life insurance and is the most common type of life insurance in Canada.

If you are interested in affordable permanent life insurance in Canada, the most popular and cost-efficient option is term 100 life insurance. This type of insurance does not offer an investment option like other permanent life insurance options and instead offers straightforward life insurance coverage for the rest of the insured’s life with premiums being paid until the policyholder’s 100th birthday.

8. Work With a Life Insurance Agent or Broker

The best way to save money on life insurance is to work with a life insurance broker. Whereas an insurance agent works directly for a specific insurance provider, a life insurance broker represents their clients directly and can help them shop around and find the best life insurance rates among multiple insurance providers.

Life insurance brokers can be hired at no cost to you, instead, they are paid a commission from the life insurance provider you choose to get a policy through. By speaking with a broker you can get expert insight into your specific situation, receive advice on which policies you will likely qualify for, and get help finding the most affordable life insurance options available to you.

Get Affordable Life Insurance Today!

By cutting out unnecessary expenses and making informed decisions, you can save a ton of money on life insurance. If you would like help with the process and insurance advice specific to your situation, you should consider working with an expert financial advisor.

At Protect Your Wealth, we work with and compare policies and quotes from the best life insurance companies in Canada to ensure we 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 to build the best package to give you the protection you need.

To schedule a consultation about your income protection goals, or if you have any questions about insurance in Ontario or Canada, please contact Protect Your Wealth or call us at 1-877-654-6119 to talk to an advisor today! We’re proudly based out of Hamilton, and service clients anywhere in Ontario, British Columbia, Manitoba, and Alberta including areas such as Kingston, Mississauga, Medicine Hat, and Nanaimo.

Frequently Asked Questions About Affordable Life Insurance