Which Life Insurance Companies Have the Best Rate?

Posted on April 11, 2012 and updated April 13, 2012 in Insurance Types, Life Insurance Canada News, Term Insurance 4 min read

When it comes to which life insurance companies have the best rate, the answer is the product of the following variables:

1. The Type of Plan – Life insurance can be divided into term policies and
permanent policies, and permanent policies can be further divided into term
100, universal life, and whole life insurance policies.

Most life insurance companies in Canada have been raising their rates or removing their term to 100 policies and universal life level-cost policies from their product line-up. Therefore, it’s very important for you to shop around to find out which company offers the best rates on a particular plan — especially a permanent one.

2. Face Amount – Generally, life insurance becomes less expensive on a cost-per-thousand-dollars basis when the insured increases the policy face amount. The reason is that life insurance companies have different standing levels.The higher the standing level, the lower the cost per thousand dollars, and each insurance company starts a standing level at different points.

3. Gender – Males will pay more for life insurance than females, but each insurance company has its own tables in terms of pricing differences between males and females.


4. Age – The older the individual, the higher the premiums, but many
insurance companies have a sweet spot in their pricing at certain age
groups.

5. Smoking Status – Smokers pay more than non-smokers, but each insurance company sets the risk for smoking differently, and there may be larger price discrepancies among each carrier depending on the insured’s smoking status.

6. Health and Lifestyle Issues – Each insurance company has its own
underwriting criteria when looking at an insured’s health and lifestyle
risks. Some companies will decline or rate a life insurance applicant,
while other companies might offer the same applicant standard rates or only a slightly rated policy. A rated policy is a policy that charges an extra
premium to the insured based on extra risk.

For more details on life insurance in Canada, please contact us at
1-866-899-4849 or visit our Term Life Insurance Quote Page.

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