Term life insurance: Money-saving tips (they do exist)!
Term life insurance is the most affordable way to protect your
family's future. As inexpensive as term life insurance is, there
are money-saving tips that will ensure you are paying only what
you need. Get the most value for your dollar by checking out the
following helpful tips that will save you money while still
getting great protection.
1. Get coverage early - the sooner you buy life insurance the
less your annual premiums: Some people are gamblers by nature
and choose to take their chances by skipping out on life
insurance. Although it is unlikely you'll die during your
working years, you're not insuring for what's likely to happen
but instead, for the worst-case scenario. That's why term life
insurance costs less the younger you are. It is also why you
should buy it sooner rather than later-because you'll be
providing financial security without spending a lot of money for
it.
For example, if we look at the cost to purchase a $250,000 Term
10 life insurance policy you'll see how delaying purchasing a
policy by just a few years could cost you more in annual
premiums.
For male non-smokers*: A 35 year-old may get quotes for as
little as $195 per year for a 10-year total cost of $1,950. A 40
year-old may get quotes for as little as $263 per year for a
10-year total cost of $2,630. A 45 year-old may get quotes for
as little as $373 per year for a 10-year total cost of $3,730.
For female non-smokers*: A 35 year-old may get quotes for as
little as $165 per year for a 10-year total cost of $1,650. A 40
year-old may get quotes for as little as $210 per year for a
10-year total cost of $2,100. A 45 year-old may get quotes for
as little as $270 per year for a 10-year total cost of $2,700.
* Lowest quote online from February 2006 for a Term 10 policy,
one of the most popular life insurance products in Canada.
Premiums shown are the rates if paid annually.
2. When your age isn't really your age: Your next birthday may
be 6 months away but in the eyes of most life insurers you've
already hit that next magical number. When you get a life
insurance quote, the rate you are given is based on the age you
are closest to which, 50 per cent of the time is your age at
your next birthday. It's a term called "Age Nearest", and that
half-year price increase could really add up. See the difference
yourself.
For male non-smokers*:
A 39 year-old may get quotes for as little as $248 per year for
a 10-year total cost of $2,480 A 40 year-old may get quotes for
as little as $263 per year for a 10-year total cost of $2,630.
A savings of $150
A 44 year-old may get quotes for as little as $345 per year for
a 10-year total cost of $3,450. A 45 year-old may get quotes for
as little as $373 per year for a 10-year total cost of $3,730.
A savings of $280
For a female non-smoker*:
A 39 year-old may get quotes for as little as $200 per year for
a 10-year total cost of $2,000 A 40 year-old may get quotes for
as little as $210 per year for a 10-year total cost of $2,100.
A savings of $100
A 44 year-old may get quotes for as little as $255 per year for
a 10-year total cost of $2,550. A 45 year-old may get quotes for
as little as $270 per year for a 10-year total cost of $2,700.
A savings of $150
* Lowest quote online in January 2006 for a Term 10 policy.
Premiums shown are the rates if paid annually.
3. If you're a smoker ask about incentive programs aimed at
helping you quit: While not all life insurance companies offer
incentive programs to help you quit, some do and could save you
money if you are thinking about buying life insurance and
quitting smoking. For example, one such company will refund you
an amount equal to the difference between the premiums you
already paid as a smoker and those you would have paid had you
not smoked. What's more, once you quit smoking, this same
company will adjust your premiums to non-smoker rates based on
the age you were when you purchased the policy, not the age you
are at the time you quit!
4. Check out your payment/billing options: Many life insurance
life insurance companies offer discounts to consumers who pay
their annual premiums up front. If you have the money handy, you
could save up to 10 per cent of your policy's premium each year.
For example:
* A 35 year-old male with $250,000 in coverage can pay $195 up
front per year for life insurance coverage. If paid in monthly
installments, however, the annual premium jumps to about $215.
Paying up front can save this person $20 per year!
* A 40 year-old male with $250,000 in coverage can pay $263 up
front per year for life insurance coverage. If paid in monthly
installments, however, the annual premium jumps to about $288.
Paying up front can save this person $25 per year!
* A 45 year-old male with $250,000 in coverage can pay $373 up
front per year for life insurance coverage. If paid in monthly
installments, however, the annual premium jumps to about $407.
Paying up front can save this person $34 per year!
Life insurance made even more affordable: With these
money-saving tips in hand, Term Life insurance is more
affordable than ever. There is no better time than now to get
the coverage you and your family need.