When buying a term policy in Canada, the options and features can be very intimidating and confusing. No one knows that better than LSM insurance broker Syed Raza. I sat down with him as he outlined five very important things to look out for when buying a term life insurance policy:
1. The renewal rate. Syed told me that if you need to renew your policy beyond the initial return, look very carefully at the cost of renewal rate.
2. Conversion Features & Permanent Product Lines. While Syed stressed the importance of looking into the conversion features on the company’s term policies, along with their permanent product lineup, he relayed that there’s something much more important to keep in mind above all else. He says the policies that the company will allow the insured to convert are based on the time of conversion. As a consequence, the company may offer a good permanent insurance lineup in the moment, but this could change as the company removes certain products in the future.
3. Preferred Rates. If the insured is in very good health, Syed makes it known that you should ensure the insurance company offers preferred rates. Preferred rates are given to individuals who are in excellent health and have very good family health history. If you are one of the lucky few, you may be entitled to a savings of over 30%.
4. Multi-life vs. Joint Life. Syed always makes sure his clients understand the difference between Multi-life and Joint Life insurance. Joint Life offers lower premiums, but less flexibility to the surviving spouse if the other person in the couple dies.
5. Term Insurance Layering. A little known fact that Syed wants to let you in on is the practice of some companies to layer term insurance coverage. For example, Empire Life has a feature where you can layer Term 20 coverage with it’s Term 10 coverage under one plan, which cuts down on the policy fee.
For more details on Term Life insurance in Canada, please contact us at 1-866-899-4849, or visit our Term Life Insurance Instant Quote Page.
