7 Steps to Getting the Cheapest Term Life Insurance in Canada

Posted on May 14, 2009 and updated April 12, 2018 in Life Insurance Canada News 3 min read
steps

We all know that most people don’t spend their days thinking about life insurance, but if they did, they would see that term life insurance rates vary widely from company to company, and that taking the time to investigate their options could translate into thousands of dollars worth of savings for them and their families.

The following 7 steps make sure you’ll be several steps ahead of “most people”. They will help you cover your bases and make sure you’re always paying the lowest term life insurance price possible.

Taking the time to investigate your options could translate into thousands of dollars worth of savings for you and your family.

Step 1: Make sure you’re buying the right amount of coverage. You can visit our online needs analysis or calculator to find out how much insurance you really need.

Step 2: Pick the plan that is right for you.Term policies have a lower cost, but remember that cost rises as you get older.

Step 3: Make sure you are working with an independent broker with access to a variety of carriers. Many brokers, though independent, only have access to two or three carriers and aren’t always shopping for the best rate.

Step 4: Buying life insurance is a great excuse to stop smoking. Smokers pay higher insurance premiums than non-smokers. A 40-year-old smoker will pay $77.40 a month for $250,000 of Term 20 life insurance, while a non-smoker will pay $36.90 a month.

Step 5: Improve your overall health. Many variables go into determining what insurance classification you will recieve, some of those are beyond your control like family history, but others are completely and totally within your control, like blood pressure, build, and other lifestyle factors. We recommend you do your utmost to improve those factors within your control and have faith about the rest.

Step 6: Be careful when selecting additional riders and benefits. Usually these are traps designed mostly to increase your premium payments.

Step 7: Shop online. Our Term Life Calculator compares the prices of all the life insurance companies across Canada to make sure you’re not overpaying.

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Jason
Jason

Can you get preferred rates if you have diabetes my blood sugar is now well within normal range.

LSM Insurance
LSM Insurance

Hi Jason, Thanks for the question. It will be difficult to get preferred rates as a diabetic, if your blood sugar is very well controlled you may be able to get a standard rate i.e. a non rated policy.

Antone
Antone

Price is importantbut to me many people overlook other features on a policy. What’s the point if the company won’t pay out when you need them.

LSM Insurance
LSM Insurance

Hi Antone, Thanks you make a good point. Price is just one variable. having said that on certain Term policies many of the features among carriers is very similar so price is important element.

Lloyd
Lloyd

Can I still get preferred rates if I had a heart attack it was over 20 years now. I work out 6 days a week.

LSM Insurance
LSM Insurance

Lloyd, It would be very difficult to get preferred if you had a heart attack even if it was over 20 years ago. having said that you should qualify for a plan and we will send you a separate email now so we can get working on a quote.

Roy
Roy

The cheapest isn’t always the best?

LSM Insurance
LSM Insurance

You make a good point Roy. This article is referring more to getting the best deal – this is not necessarily the cheapest price.

Ralph
Ralph

Do you work with Industrial Alliance. I am looking at a 30 year ter. I have $200,000 with them already. I’m 43 and my wife is 39. Thks

LSM Insurance
LSM Insurance

Hi Ralph,

Yes we are an Managing General Agency with Industrial Alliance and are happy to help with a quote. We will be in touch by email now. Regards,