30 Ways to Save on Life Insurance

Although there are many articles that offer life insurance tips, most of them only provide a few pieces of advice. It would be wonderful to have all the saving tips and tricks in one place. This list was created for life insurance. This is the best list of savings on Canadian Life Insurance. It was compiled after many discussions with insurance brokers. So, let’s start!

1. Age: If you’re young, apply for the policy and your premiums are lower.

2. Round up your age carefully: When you buy life insurance, ensure that your age is rounded down, not up. If you will be 30 years of age on December 31, purchase the policy within the first six months of the year, where your age is still rounded to 29 and not 30,

3. Good health: Insurers will offer lower premiums for those who are healthy and have a good body (ratio of height and weight) when they apply for life insurance policies.

4. Non-smokers should stop smoking at least one year in advance of applying for a policy. Otherwise, your premiums could double.

5. Good driving record: Before applying, ensure you have a clean driving record. A bad driving record can be punished by your life insurance provider (as well as auto insurers). Your premiums will increase by 25-50%.

6. Gender: On average, female policyholders pay 25% more than male policyholders. It won’t help to change your gender – insurance companies consider the gender you were born with.

7. No depression: People with a history or depression pay between 50%-200% more.

8. Family history: A healthy family will lower your life insurance premiums. You are less likely to be diagnosed with a serious illness. Premiums can rise by up to 25% if there are known serious medical issues in your family.

9. Your medical history: It can have an impact on your insurance policy if you have a good medical history, but not equal to your current health. Some potential diseases can be excluded from your coverage if you have had severe health issues.

10. You should not drink excessively: If you don’t have any drinking problems, you may be eligible for lower rates. Otherwise your premiums could increase up to 50%. A heavy drinker is someone who consumes more than four beers per day.

11. Term insurance instead of other types of insurance: Instead of choosing e.g. Universal Life. The first is an insurance product, while the second one is an investment product. It often costs more.

12. Get in shape: If your current life insurance policy covers you, and you are in a better shape than you were when you signed up (e.g. You can request a review of your premiums for life insurance if you have spent hours at a gym.

13. Your driving record can be cleared: If your driving record has improved while you are a life insurer policy holder, you can discuss your premiums with your insurer to get them decreased (the typical time it takes for lesser offenses to be removed from your driving record is three years).

14. Smoking: Your insurance premiums will be reduced if you stop smoking and show your insurer that you haven’t smoked for at least one year. Smokers pay twice the premiums.

15. Stop drinking: It’s the same story as drinking. You must prove that you have been sober for at least one year. This will reflect in your adjusted premiums on an existing life insurance policy.

16. Group Life insurance: If your employer provides sufficient coverage, Group Life Insurance may be an option to Personal Life Insurance. At the very least, you will be protected for as long as your company is in business.

17. Employees and Union members: Some companies offer discounts for union members (e.g. Research in Motion or IBM Canada)

18. You can eliminate unnecessary coverages. Check out additional riders that are included in a life insurance policy to determine if they are necessary. Accident death benefit (higher payouts for death due to an accident), term converter rider (in the event you want to convert your Universal policy into Terms)

19. Avoid guaranteed issue policies: These policies do not require a medical examination, but are more expensive for people in good health.

20. Professional Membership: Are You a Member of a Professional Organization (e.g. Certified Management Accountants of Canada (or The Air Canada Pilots Association),? Some insurance companies will offer you a discount.

21. One policy for you and your spouse: This policy can be purchased for you and your spouse. It is often less expensive than two separate life insurance policies (also known as a multi-life policy).

22. Adjust your coverage amount: Check that you don’t take on more (but not less) insurance than you need. Perhaps $1,000,000 is sufficient. Ask your advisor and yourself if you really require $2,000,000.

23. Avoid high-risk jobs: If you are not involved in dangerous jobs such as a member the police bomb squad, it will save you money on your insurance premiums.

24. Shop around: Compare, Switch, and Search for Insurance Companies. You can find many insurance providers, and the price of similar policies can vary greatly. Therefore, you should use multiple online tools to compare and switch insurance companies.

25. Alumni: Graduates of certain Canadian universities, such as McGill University or University of Toronto may be eligible to receive a discount from certain insurance providers.

26. Monthly payments vs. annual: Annual payments are less expensive than monthly payments. They reward you with lower premiums by sending you bills instead of monthly payments.

27. Welcome discount: Insurers offer a welcome discount.

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