When buying life insurance policy in Canada, there are several variables to consider. The following five tips can help you make sure you make the right decision in terms of your life insurance planning:
1. Determine if you are over or under-insured. Many Canadians, when purchasing a life insurance policy, will simply pick a number out of thin air. By taking a look at your current needs (your income replacement needs) and subtracting existing assets, including life insurance you already own, you can make a more informed decision about whether you are over or under-insured. Our Life Insurance Needs Calculator can help with that process.
2. Select a life insurance company which is a member of Assuris. Assuris will protect the consumer in the case of a life insurance insolvency. They pay out the greater of either 85% of the policy or $200,000 of policy face amount.
3. Select a company that offers preferred rates. Preferred rates are available to individuals who are in excellent health and have an excellent family health history.
4. Work with an independent broker. Independent brokers have access to a wide variety of carriers. Unlike captive agents, they are not limited in the companies and plans they can choose from.
5. Never cancel an existing life insurance policy until you have had a complete medical.
If you have any additional questions, please do not hesitate to contact us at 1-866-899-4849, or visit our Instant Quote page.
