term life insurance

term life insurance

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 laterbecause 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 youll 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. Its 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 youre 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. Whats 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 policys 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.

Fixed term life insurance explained

The importance of having adequate life cover should never be underestimated and the solution may be in taking out fixed term life insurance cover.

But first of all, why is life insurance so important? Sadly, many people see it as an unnecessary expense, thinking that once they die, why will they need the money? However, life insurance provides financial protection for the loved ones you leave behind.

For example, if you died tomorrow, would your partner be able to meet the monthly mortgage repayment and day to day bills on one salary alone? Would they be able to live the same lifestyle without your salary? Or would they need to sell up and downsize, possibly uprooting your children in the process?

It is unlikely that they would be able to cope financially on just one salary alone and nor would you want them to be put under financial stress while coping with their grief.

The positive news is that the life insurance doesnt have to be expensive and fixed term life insurance can be fairly cheap.

Fixed term life cover is insurance that pays out a lump sum should the life insured (ie. the policyholder) die during the term of the policy. It is a simple and probably the most inexpensive form of life insurance cover available.

This is because if the policyholder (or policyholders in the case of a joint life policy) survives the term of the policy, it expires and no payment is made. As the lump sum payment is only made on the death of the policyholder, this makes the life assurance premiums less expensive than some other life insurance plans.

Fixed term life insurance can also have additional benefits such as payment of the lump sum upon diagnosis of a terminal illness (such as cancer) during the term of the policy.

The term will normally fixed to match your personal financial circumstances – for example, if you have twenty years to go on your mortgage, then you need life insurance to cover at the least the period until your mortgage is paid off. Or you may want it to run up until you plan to retire.

As with all insurances, do shop around to find the right deal for you you’ll be surprised how much prices can vary from insurer to insurer even though they are offering the same level of cover and benefits.

Finally, if you are unsure about any aspect of your chosen cover, then speak to your life insurance provider or seek independent financial advice

The Comparison of Term Life Insurance with Whole Life Insurance

The Comparison of Term Life Insurance with Whole Life Insurance

Life insurance is a serious business that people should think twice about before signing, because it is not an investment tool, nor a way to save for college when purchased for children. However, for those who understand what insurance is intended for, term life insurance versus whole life insurance is a consideration coming into play.

A whole life insurance company generally may provide a term life insurance quote to help you decided on the insurance to be purchased. Money is the critical factor between both insurance coverages. As an example, the first annual premium of a whole life insurance policy is typically much higher than the annual premium for a term life insurance.

Life insurance can be purchase for many purposes, including providing financial security for your spouse, children’s education after your death, pay death expenses, donate the proceeds to a charitable organization, and so on. The top reason people usually buy life insurance is as an income replacement after death for their dependents.

Term life insurance is a life-only coverage policy, in which the benefits are obtained after your die. Therefore, if you are alive, there is no money for your beneficiaries. Whole life insurance offer death benefits but also a savings account, called “cash value, giving money back if you are alive after the signed term, cashing the policy before it occurs, or borrowing money against the policy.

Typically, if you require a life insurance quote before buy the policy, either the insurance company, financial institution or online services, provide it for free. Purchasing life insurance from a whole life insurance company may result in a more expensive plan than buying term insurance, because of the funds put into the cash value account.

In addition, the longer your policy term, the higher cash value to the name beneficiaries or the surviving insured due to the insurance money being paid and the cash value earned dividends, interests or both, for terms ranging from 1 to 30 years. However, any whole life insurance company or other institution can lock whole and term life insurance policies into the same monthly payment over the whole life of each policy.

When it comes to life insurance, many people consider whole life insurance as a type of retirement plan; however, they are more likely forced saving with high commissions and fees, including up front hidden commissions up to 100% of the first year’s premium. On the other hand, premiums for term life insurance are cheaper for people in good health up to age 50 or so.

If you ask for a term life insurance quote, you will be able to notice how premiums become progressively more expensive after 50 years, although a whole life insurance company may apply higher premiums according to the insurer’s age, and most companies do not sell life insurance to people over age 65.

Flexible Plan Of Group Term Life Insurance

 


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