How to save 30% to 50% on your term life insurance purchase. How buy term life insurance...
If your looking for affordable coverage for temporary periods of time then consider term life insurance
In this life insurance buyers guide we'll cover
-"what is term life insurance"?
-"how does term life insurance work"?
-"what are the benefits of term life insurance"?
-"how to buy term life insurance"?
-"how much does term life insurance cost"?
What is term life insurance?
Term life insurance is a type of life insurance policy (contract) that provides temporary coverage for a specific term or period, such as 5,10, 15, 20, 25, 30 or 40 years. Designed to provide simple affordable protection for a predetermined number of years along with fixed monthly premium amounts (also called level premiums).
Term life insurance premiums don't increase during the term of the policy. As long as you pay those regular premiums your coverage is maintained and will payout a lump sum amount if you die during the time period your policy contract is in force
Your term life insurance policy premiums are based on factors such as your age, health, policy type, coverage amount, and the number of years covered in the policy contract
How does term life insurance work?
Term life insurance has a number of features that provide additional benefits:
Coverage duration for a specified number of years. Your Term life insurance policy provides coverage for a fixed term in increments of 5 and 10 years. You can choose the length of term based on your specific needs. Try our life insurance calculator
Death benefit $ amount If you pass away during the term of the policy, the death benefit is paid to your designated beneficiaries tax-free. lump sum amount
Level premiums remain the same amount each month amount for the duration of the policy's life time
Your term life insurance does not accumulate cash value over time. Term life insurance provides only temporary death benefit coverage with no savings component or investment feature. Unlike permanent life insurance (such as whole life or universal life) that lasts much longer and includes a savings and investment component
No policy loans Since term life insurance lacks a cash value component, there are no policy loans or withdrawals available
Guaranteed Convertible Your term life insurance policy includes a guaranteed convertibility option, allowing you to convert the term policy into a whole life insurance policy (permanent) without the need for a medical exam. This is beneficial if your needs change, or you develop cancer and you need lifelong coverage or cash value accumulation
Guaranteed Renewable Your term life policy is renewable, which means you can renew the coverage for another term before the initial term expires. You will pay higher premiums at renewal time which are based on your age at that time.
Affordable Coverage Term life insurance provides affordable coverage when compared to whole life insurance. Offering a cost-effective way to obtain high coverage amounts during periods of increased financial responsibilities. Helpful when raising a family or paying off a mortgage
Temporary Coverage Term life insurance is well-suited for specific financial obligations that have an end date. The policy will provide income replacement during working years, cover mortgage or loan obligations, or fund a child's education
Simplified Underwriting Term life insurance policies under $750,000 often involves a questionnaire, no underwriting or no medical exams fewer as compared to most permanent life insurance policies. If you are in excellent health are a non smoker you may qualify for these types of policies. Usually for amounts over $750,000 you'll need full underwriting
Term life insurance has simpler underwriting and requires fewer medical exams or health questions compared to some permanent life insurance policies
No tax free lumpsum payout if you outlive the term of the policy and the coverage expires
What are the benefits of term life insurance?
Term Life Insurance Riders
Term life insurance riders are additional features or options that can be added to a term life insurance policy to enhance its coverage and tailor it to your specific needs. Riders typically come with an extra cost in addition to the base premium. The availability of riders depends on the insurance company and the specific policy
Common term life insurance benefits (riders):
Accelerated Death Benefit Rider (ADB): This rider allows you to receive a portion of the death benefit in advance if you are diagnosed with a terminal illness or a specified critical illness. It provides financial support to cover medical expenses or other needs during a challenging health situation
Waiver of Premium Rider (WP): If you become disabled and unable to work, this rider waives the premium payments, keeping the policy in force during your disability period. The policy remains active, providing continued coverage without requiring premium payments
Accidental Death Benefit Rider (ADB): If you die as a result of an accident, this rider pays an additional death benefit on top of the base death benefit. It increases the policy's payout amount
Child Rider: This rider provides term life insurance coverage for your children. In the event of a child's death, it pays a death benefit to the insured parent. It's an affordable way to provide coverage for children and can later be converted into a separate policy for your child when they turn 16
Spouse Rider: Similar to the child rider, this rider offers term life insurance coverage for the your partner. In the event your partners death, it pays a death benefit to the insured. It's an option for couples to add coverage for each other to their respective policies
Return of Premium Rider (ROP): This rider refunds the total amount of premiums paid over the policy term if the insured survives the term. It offers a full or partial premium refund at the end of the policy if you outlive the term. Usually found in critical illness policies
Long-Term Care (LTC) Rider: This rider allows you to access a portion of the death benefit to cover long-term care expenses if you need assistance with activities of daily living. It helps preserve your policy's value while providing financial support for care needs
Disability Income Rider (DIR): If the you become disabled and unable to work, this rider provides a regular income stream to replace lost earnings during the disability period. It can help maintain your financial stability during a time of reduced income.
Guaranteed Insurability Rider(GIR): This rider allows you to purchase additional coverage at specific life events (e.g., marriage, birth of a child) without the need for additional underwriting. It offers you the option to increase coverage as life circumstances change
Example of BMO term life insurance
Affordable Protection
BMO offers 5 plan types, designed to meet your personal or business financial obligations:
Term 10 provides level life insurance protection to age 85 with guaranteed premiums renewing every 10 years
Term 15 provides level life insurance protection to age 85 with guaranteed premiums renewing every 15 years
Term 20 provides level life insurance protection to age 85 with guaranteed premiums renewing every 20 years
Term 25 provides level life insurance protection for 25 years
Term 30 provides level life insurance protection for 30 years
Great Features
All plans offer single life, combined life or joint last to die type coverage.
Term conversion with reset
Term 10-15 Exchange Program
Terminal Illness Life Advance
Credit card payment for the first annual premium ($100,000 maximum)
Accelerated Underwriting
BMO offers accelerated underwriting (no fluids) up to and including age 60
This means that you will get the coverage you need faster
Available for ages18-50 up to and including $2,000,000
For ages 51-60 includes up $500,000
Are you in good health?
Why not reward yourself with preferred rates?
Online Applications
Applications can be submitted online using Smart App for both face-to-face and non-face-to-face meetings
How to save 30% to 50% off term life insurance. How to buy Term life insurance?
Obtain term life insurance quotes from all insurance companies
All brokers have to use the same life insurance premium quotation tools. No one has different life insurance prices. Prices are set by the life insurance companies
For now every agency and broker selling life insurance are paid on commission even if they pay their staff a salary they have sales quotas
The value that agents or brokers offer is to provide creative life insurance policy designs and comparative life insurance quotes for all 30+ life insurance companies
Always obtain all of the life insurance quotes that compare various riders and benefits
When you're shopping for life insurance its worth considering higher life insurance amounts. Often you'll find that you can get another $300,000 coverage for a few dollars more per month. Consider which riders and additional life insurance benefits to add to your life insurance policy quotes. This will increase the monthly premium and provide enhanced coverage with more benefits
Consider a layered term life insurance policy with 2 or 3 policies, with 10-20-30 year terms with a disability premium holiday riders and a critical illness policy (compare policies with or with out return of premium) then you have a policy with some cash value. Cash value in a policy always comes in handy
Consider a joint first to die or joint last to die policy as a lower cost form of term life insurance
All of the insurance companies use price banding in ranges of $100,000 to $200,000 to group their pricing. Life insurance pricing is based on the historical claims experience the insurer had with their polices
I've seen cases where it was the same price to buy another $50,000 of coverage due to the price banding that particular company was using
If you look at the examples below you'll notice that men pay 25% to 50% more for their life insurance policies than women. Life insurance is always cheaper for women as they live longer and make fewer claims
Life insurance companies target slightly different markets and offer difference premium pricing for different demographics
To find the best life insurance in Canada it pays to shop for multiple quotes. It always pays to consider everything you need to cover with your life insurance policy and take out more coverage when your younger as its much cheaper
How much does term life insurance cost?
Term life insurance quotes 20 year level term for $500,000
Premium price examples for male Non Smoker age 21
Sun Life Term Insurance $25.65 per month RBC insurance quote $26.82 per month UV Insurance $27.00 per month RBC Life Insurance Term Life $29.62 per month Empire Life insurance $29.70 per month Term life insurance quotes for 20 year level term for $200,000
Premium price examples for male Non Smoker age 21
Empire Life insurance $15.66 per month
UV Insurance $16.38 per month
Humania Term Life Insurance $16.83 per month IA Term life insurance $17.28.per month Equitable term life insurance $17.37 per month Term life insurance quotes 20 year level term for $200,000
Premium price examples for female Non Smoker age 21
UV Insurance $12.96 per month Empire Life insurance $13.14 per month Humania Term Life Insurance $13.59 per month
IA Term Life Insurance $14.40 per month Manulife Term Life Insurance $14.71 per month
Term life insurance quotes for 20 year level term for $500,000
Price price examples for female Non Smoker age 21
Humania Term Life Insurance $16.83 per month IA Term life insurance $17.28.per month Equitable term life insurance $17.37 per month RBC Life Insurance Term Life $18.63 per month UV Insurance $19.35 per month
Empire Life insurance $20.70 per month