Posts Tagged: People

Life insurance – Tackling the top reasons why we put off buying it

OK, thinking about your own mortality is not a topic anyone enjoys, but our own death is one of the few certainties in life. So why do 35% of Canadians not insure their own life to make sure their family or loved ones are financially protected? While the number of reasons likely match the number of people not insured, the following are the most commonly heard.

Reason #1 I dont have a need for life insurance:
Lets be honest, this reason is by far the most common and for most people untrue. Unless you are an individual who does not have children, has money on hand to cover all debts and funeral expenses, and does not feel the need to offset the loss of their income to a spouse, leave any additional money to family, or to a charity, then it may be true, you dont need life insurance. But few people have the funds readily available to fulfill all their wishes or meet their obligations after their death.

At the very minimum, if you have anyone who relies on your income for their day-to-day needs like a spouse or children, or if you have debts like a mortgage, then you likely need life insurance.

Reason #2 Life insurance is too expensive:
If in the past people have found life insurance to be too expensive it could be because of the type of coverage they were seeking, like whole or universal life insurance. Term life insurance is the most affordable of all the products and is very popular because of it.

Term 10 Life insurance, the most popular Term product in Canada, offers a premium guaranteed not to change for 10 years.

A male non-smoker seeking 100,000 in coverage could be paying as little as*:

1125 for a 30 year-old
2129 for a 35 year-old
3157 for a 40 year-old
4207 for a 45 year-old
5281 for a 50 year-old

A female non-smoker seeking 100,000 in coverage could be paying as little as*:

6106 for a 30 year-old
7112 for a 35 year-old
8133 for a 40 year-old
9163 for a 45 year-old
10219 for a 50 year-old

As you can see, for very little money a year, you can get 100,000 in life insurance coverage.

* Lowest quote online from October 2005 for a Term 10 policy, one of the most popular life insurance products in Canada. Premiums shown are the rates if paid annually.

Reason #3 I dont know anything about life insurance and dont know where to start:
A number of free online tools have been developed to help you decide which term life insurance product is best for your specific situation and how much life insurance coverage you should get.

1Term Life Insurance Analyzers. By answering a few simple questions, these tools will assess your needs and let you know what product is most commonly recommended for people with similar lifestyles.

2Term Life Insurance Calculators. These tools will help you put a pound value on the amount of coverage you need in order to ensure that your family, loved ones and your debts are covered in the event of your death.

Reason #4 Life insurance is a hassle to get:
Thanks to the Internet, getting term life insurance quotes is now fast and easy. If you want to shop around first, getting quotes online means you can avoid hard-sell tactics by someone sitting across from you. There is no sales pressure or obligation to buy when you get quotes online. Its easy, can be done any time at your convenience and is simply a better way to shop for life insurance because of it.

Purchasing life insurance is a big decision, and we all want the best coverage for the least cost. However, money is not the only factor that goes into choosing a life insurance company. Below are five factors that separate best life insurance companies from the average ones. You will want to consider when choosing the best life insurance company, and policy, for you.

First, after you have shopped around a bit, thrown out the definite no ways and decided on a couple of maybe candidates, you will want to make sure that the one you choose in the end is both well-established and financially stable. You can find this information from the insurance companies themselves, but you might want to consider asking around, as well. Talk with someone who has used or is still using the companys services. Research the life of the company, too.

Second, you will want to choose a company that does not discriminate against age or existing health issues. These kinds of discriminations make it almost impossible for people to get life insurance.

Third, choose a life insurance company whose policies will not change and premiums will not increase as you get older.

Fourth, it is important for the life insurance company you choose to have a staff of well-trained and objective insurance agents. You want an agent who is unbiased and will help you find the best policy for you, and not what will make the most money for them.

Fifth, and last, make sure the life insurance company you choose has a policy just for you. Your policy needs to fit both your coverage needs and your budget.

Once you have taken these factors into consideration, you will find the best life insurance company for you. It will take time, so be patient during your search. It will be worth it because you will reap the rewards of safety and security in the end.