Did you know that approximately 58% of Canadians have some form of life insurance according to a 2022 report by the Canadian Life and Health Insurance Association (CLHIA)?
The reason why so many Canadians opt for life insurance is because they want to ensure the financial security of their loved ones if something untoward were to happen to them.
However, choosing a life insurance policy in Canada is easier said than done. With several providers and different types of policies available, finding the right policy for you can be a challenge.
This is why it is essential to compare life insurance quotes from different providers to help make a more informed decision.
But, how do you do an insurance comparison? We are here to help!
Different Types of Life Insurance in Canada
Before we get into comparing life insurance quotes let us first take a look at the three different types of life insurance policies in Canada.
Term Life Insurance
Term life insurance is a legally binding contract between you and your insurance company, which is usually for a term of 10 to 30 years, where you promise to pay a monthly premium, and in exchange, the insurance company promises to pay a specific sum of money (coverage amount or death benefit) to your beneficiaries if you pass away during that term. Term life insurance is the most common and most affordable type of life insurance.
Whole Life Insurance
In a whole life insurance policy the death benefit is guaranteed as unlike a term policy, which lasts for a specific number of years, this is a lifetime policy and has a saving component (known as cash value) as well as an insurance component (death benefit). Premiums are set on a fixed monthly rate.
Universal Life Insurance
Universal life insurance is a lot like whole life insurance except that it offers flexible premiums instead of fixed premiums. In a universal life insurance policy you have a set premium amount and any payments you make over that go into a cash value account that accumulates over time. This type of policy offers more flexibility and has lower premiums compared to whole-life insurance.
Factors Influencing Life Insurance Quotes
The average cost of life insurance in Canada is $344 per year for a 30-year-old male non-smoker.
However, the type of policy you opt for can impact the amount of monthly premium you have to pay.
Monthly premiums can also vary significantly depending on the provider you are opting for and other factors such as:
Age & Gender
The younger you are the lower the monthly premiums tend to be. Young people are generally healthy and have a lower risk of dying.
That is why it is always advisable to opt for a life insurance policy at a young age as the older you get the higher the life insurance premium quotes tend to be.
Gender also plays a role in influencing quotes. Males, on average, have a shorter life span than women; males pay more for life insurance than females.
Health & Lifestyle
In most cases, when you apply for a life insurance policy you may have to undergo a health assessment. Your overall health can play a big role in determining your monthly premium. If you suffer from certain health conditions or are a smoker or vaper, your premiums are going to be a lot higher than if you were in perfect health and didn’t smoke or vape.
Your lifestyle and occupation can also impact insurance quotes. If you have high-risk hobbies such as racing, or participating in contact sports such as boxing or rugby you will likely have to pay higher premiums. The same is the case with your occupation. If you are a diver by profession or work in an industry that is prone to occupational hazards you will pay more than someone who has a 9-5 desk job.
As a rule of thumb, the higher the coverage amount or death benefit you want the higher the premiums you will likely pay. Determining the right coverage amount can be the key to getting the best insurance quotes.
To do this, it is best to speak to a licensed insurance advisor who can help you determine exactly what coverage amount you need to ensure that your dependents have the financial support they’ll need if you were to pass away.
How To Compare Life Insurance Quotes?
Now that you have an understanding of the different types of life insurance policies available in Canada and the factors that can impact monthly premiums let’s take a look at how to compare life insurance quotes.
When comparing life insurance quotes you need to look at all the factors. What type of policy is it? What is the death benefit or coverage amount? What type of riders can you add to the policy? Who is the provider and their reputation? And, of course, what is the monthly premium?
While you can do this yourself it is always best to consult with a financial advisor or licensed insurance broker as they can objectively measure and evaluate the return on the dollars allocated to each insurance policy and what would be most suited to your financial situation and future goals.
Making Informed Choices in Life Insurance with McIver Insurance Inc.
A life insurance policy, more than anything else, offers peace of mind, but can also be used as an instrument to prepare for retirement, ensure educational fees for a child’s post-secondary education, provide tax benefits, cover outstanding debts, and/or leave a legacy.
This is why before opting for a policy it is always best to consult experts such as McIver Insurance – Halfax’s most trusted insurance brokerage company!
We are a company that always puts you first by offering trusted personal health insurance, life insurance & group benefits that are tailored to your specific needs and financial goals.
To learn more call us now at 1-902-220-3279 or email [email protected]