If you already know which life insurance policy to buy, finding where to buy it at an affordable price is the next important thing. Even if you are looking for life insurance and having a hard time choosing between the available products, getting life insurance quotes will also be helpful to make your decision. Fortunately, you won’t have to contact the insurers one by one. Nowadays, with just a couple of searches, you’ll find many websites from the insurers, brokers, agents most insurance companies offer to get quotes online.
To buy life insurance, you may need to:
- choose the type of life insurance
- choose how much coverage you need
- compare quotes between insurance companies
Types of life insurance
If you are looking for quotes, you may already know about types of life insurance. We’re not talking about them in-depth, just general descriptions and names that websites may call differently.
Life insurance, in general, is a type of insurance the insurer will pay lump-sum money called death benefit when you pass away. Depending on the length of the coverage period, they are categorized into different types.
|Term life||Whole life||Universal life||100-year term|
|Length of coverage||Chosen term||Lifetime||Lifetime||Lifetime|
Term life insurance
Term life insurance is a type of life insurance when the insurer pays the death benefit if you pass away within the chosen term. You can choose a 10-year, 15-year, 20-year, 25-year, 30-year term, and even custom number of year term. If you outlive the term, you’ll get nothing.
Other names: pure life insurance
Permanent life insurance
Permanent life insurance is a type of life insurance where the coverage length is a lifetime. Whenever you pass away, you get the death benefit. Unlike term life insurance, you’re guaranteed to get a death benefit.
Whole life insurance
Whole life insurance is permanent life insurance with extra feature cash value. When you pay the premium, a portion of it will go to a particular account. This money is used for conservative investments that ensure profitability. This tax-deferred profit accumulates and quickly increases over time. You can access this cash value while you’re still alive in many ways: withdraw from it, take a loan, use it to pay the premium.
Other names: cash value life insurance
Universal life insurance
Universal life insurance is very much the same as whole life insurance, including cash value, except that the death benefit and premiums are adjustable. If your finances change, you can make changes to the policy’s key features with certain limits.
Other names: cash value life insurance, adjustable life insurance
Term 100 life insurance
Term 100 life insurance is something between permanent and term. It works as term life insurance but is categorized as permanent life insurance because the length of coverage is a lifetime for most cases. This type is as simple as term life insurance. It doesn’t have cash value and dividends features.
Other names: T100 life insurance
Choosing a type of life insurance depends on your purpose. If you want pure life coverage, you can choose term life insurance; If you want to take advantage of the investment aspect of life insurance, you choose cash value life insurance. Take a look at term life insurance Canada vs. whole life insurance Canada for more information.
Where to get life insurance quote?
Insurance companies often provide a “get a quote” function on their websites. Those are the best sources for getting quotes if you know the exact company you want to buy. However, if you are looking for price comparisons between insurance companies or simply testing the price difference between options, you need to find insurance brokers. In Canada, you can go to Insurance Direct Canada for quick and easy life insurance quote. They are one of the best insurance brokers in Canada. Because:
- They work with most of the top insurers in the insurance industry in Canada. You will find quotes for products from these companies.
- They have extensive data of quotes of policies with diverse options. The more specific you tell, the more accurate quote you get. Many other websites ask two or three questions; that’s not enough to tell.
- When you fill in the required information and submit the form, you’ll get the result right away. You don’t have to wait and check your email for a response.
- They also have a knowledge base and in-depth analysis articles that are very handy to check out.
What affects the rate?
It is also helpful to know the factors that affect premiums. It will help explain why you get the quote.
- Coverage: of course, the larger the death benefit you want, the more you’ll have to pay. If you add more riders (more coverage), you’ll pay more.
- The length of coverage: whole life insurance is more expensive than term life insurance. For term life insurance, the longer the term, the higher the premium.
- Age: this is the main factor affecting premiums. The older you are, the more likely the insurance company must pay a death benefit. Therefore, they increase the premium.
- Health condition: a medical examination is likely required. A person with bad health certainly has a higher premium than one with good health.
- Gender: statistics show that women tend to live longer than men. That’s why they pay less than men do.
- Occupations: they categorize occupations into four groups with specific guidelines. Occupations with high risks will increase the premium, such as active military, aviation, building and construction, electric powerline construction and maintenance, law enforcement, firefighting, etc.
- Lifestyle habits: unhealthy habits such as smoking, and drinking will also lead to higher insurance premiums.
Compare life insurance quote
Make sure you compare quotes between insurance companies to estimate how much you spend each month on life insurance and find the best price. Online getting quotes tools usually ask for location, type of insurance, coverage, date of birth, gender, smoking status, and the length of payment.
The rates and availability may vary depending on where you live. So, first of all, they’re going to ask for your zip code. In international companies, some products may not be available for your local. It’s better to tell where you live to ensure that you won’t waste your time getting quotes for products you can’t buy.
Type of insurance
Select the type of life insurance you want to get the correct quote. Depending on what type of insurance you choose, the fields in the form will change correspondently.
How much coverage? It’s up to you how much you want your beneficiaries to receive. Some people estimate by multiplying the annual income by 6 to 10. Another way is to multiply the annual income by the number of years remaining before retirement. If you want to use the cash value feature of life insurance for your retirement plan, you may need to talk to an advisor to calculate the exact number. Anyhow, the important thing is choosing enough coverage not to put too much pressure on your monthly finances.
Date of birth
As you already know, age affects the premium, be sure to enter your exact date of birth, especially if you’re about to turn to a new age that increases the rate significantly. Just one day is enough to make a difference between 49 and 50. In your 40s, the rates increase by 5% to 8% each year and by 9% to 12% in your 50s.
You can try switching between smoking and non-smoking to see the rate difference between them. It would be best if you were honest when choosing smoking status to get the most accurate quote. So, what counts as smoking?
Not only is the cigarette counted as smoking, but other forms are also considered smoking, tobacco usage, nicotine usage: vaping & e-cigarette, cigars, pipes, hookahs, chewing tobacco, and various other tobacco products. Some companies count marijuana as smoking.
If you quit smoking, how long does it take to be counted as non-smoking? It’ll take 12 months. If you smoke cigars more than once a month, you are still considered a smoker.
Length of payment
If you are getting quotes for permanent life insurances, you may need to specify the length of payment. The default length is lifetime payment, or you pay as long as you are alive. Other available options are: pay within 10 years, pay within 20 years, pay within 30 years, pay to age 65. The shorter the length you choose, the more expensive the monthly premiums are.
When you buy life insurance, the insurance company determines how much you need to pay each month, and the premium is fixed for the policy’s life. So, if you have determined, after considering all the life insurance quotes Canada, that you need life insurance, buy it as soon as possible to fix the low rate. As you get older, your monthly premium will increase significantly, and your acceptability will decrease as well. In addition, you will also need a physical exam; in some cases, a medical history will also be required. Please also take a look at this list of trusted insurers offering life insurance quotes Canada for your reference. If you’re living in Vancouver, please also check out our “Life Insurance in Vancouver” article.