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Cheap Life Insurance

Life insurance has proven itself a lifesaver in the 21st century, but everyone desires cheap life insurance. That’s because life insurance isn’t cheap, even with all its benefits. The risks that an insurance company takes to insure an individual make affordable life insurance very difficult.

We can break down life insurance into two primary types: term life insurance and permanent life insurance. You can also find other differences in how the insurance is offered, such as fully underwritten, simplified, and guaranteed issues.

You can get affordable life insurance through term insurance, fully underwritten insurance coverage, a clean health bill, and many other methods.

Cheap life insurance Ontario isn’t a myth; this article will show you how to make it happen.

What Is Life Insurance?

Life insurance is the type of insurance where your family gets a lump sum when you pass away. Since you (the policy owner) are in a contract with the insurance company, your beneficiaries are entitled to a predetermined sum. Of course, you’ll have to pay the insurance company annually or monthly for the period of that life insurance coverage.

Ultimately, life insurance is meant for your family and not for you. It’ll help them take care of the expenses at the time of your demise and cater for themselves after that. So, this insurance can cover future expenses like a mortgage, college fees, and car loans for your family.

What Are the Types of Life Insurance Covers?

There are quite a few forms of life insurance that a Canadian can choose. These forms of life insurance vary based on the length of the cover, how much is covered, and many other features.

The two major types of life insurance are term and whole-life (permanent) insurance. Within these two types of insurance, there are others like guaranteed issues, simplified issues, and universal life insurance.

If you want to get your hands on cheap life insurance, you’ll need to understand how they all work.

  • Term life insurance
  • Permanent life insurance

Term Insurance

This life insurance policy covers an individual for a specified number of years. It could be 5 years, 15 years, 20 years, or even 40 years. The insurance could also cover the insured individual until they reach a specific age, like 60, 70, or 80.

If the insured is covered under the insurance policy, their family will receive premium payments after death. Of course, if the individual dies after the insurance coverage has run its course, the insurance company won’t pay anything.

Term life insurance is cheap life insurance, as it costs far less than permanent life insurance. This type of insurance is common in Canada since it’s cheap and offers the most extensive coverage. However, the premium for this insurance can increase with the insured individual’s age.

Within this cover are other types that have been prepared specifically with couples and debtors in mind, and they include:

  • Creditor Insurance: This is a cheap life insurance you can take if you’ve taken a loan or have yet to pay your mortgage. For this cover, the payment made after your death will be given to your creditors. Your family won’t receive any compensation.
  • Joint first-to-die Insurance: Among the cheap life insurance in Canada, this is one of the best for couples. The price for insuring the couple is lower than insuring them individually.

So, if one of the couples dies, the death benefit will be paid to the surviving couple. If the remaining spouse dies, other beneficiaries will not be paid again.

Permanent Life Insurance

This is an insurance policy that provides coverage until the insured party dies. However, permanent life insurance offers a fixed premium compared to term life insurance. This means that their premiums don’t increase with age.

However, the fees for this type of insurance are high since everyone dies at some point. As such, the insurance company knows that they’ll have to make a payment someday.

There are three popular types of permanent life insurance, and they are:

  • Term 100: This type of life insurance is the most common one, and it requires payments until the insured is 100 years old.
  • Whole Life Insurance: Cash value builds up over time in this type of life insurance. You can receive this cash value when you decide to cancel the insurance or use it as loan collateral.
  • Universal Life Insurance: This life insurance policy has investment elements and allows you to build cash value. However, the cash value from this cover depends on your investments. It’s also cheap life insurance that offers flexibility in adjusting the premiums you pay for the coverage.

How Are Life Insurance Policies Offered?

From the above, we’ve already established that term life insurance is cheaper than permanent life insurance. However, the form in which the insurance companies offer these covers can also affect their cost. Life insurance is available in three forms: fully underwritten, simplified, and guaranteed.

If you want cheap life insurance Canada, you’ll need to understand how these forms of coverage affect their cost.

Fully Underwritten Insurance

This type of life insurance cover is available for both term and permanent life insurance. You’ll need to disclose your complete medical history to the insurer before they can consider your application. You’ll also need an attending physician’s statement, or you’ll have to accept a visit from a doctor sent by the insurer.

Simply put, this coverage is offered when you have a clean health bill, so the insurer doesn’t consider you a risk. Many Canadians cannot fulfill this condition as they might be ill or have medical conditions that make them risky. As such, many of them cannot acquire fully underwritten coverage for their life insurance.

This type of coverage also has the most prolonged approval process, where weeks can be spent waiting for a reply. Nonetheless, this can be worth it, as there’s no limit on how much this policy can offer as its coverage amount.

While the steps for acquiring this type of coverage can be very rigorous, their costs are less than other forms of coverage. So, they can be cheap life insurance for any Canadian who qualifies.

Simplified Issue Life Issue

This life insurance cover allows you to skip medical exams or doctor visits. However, you’ll need to answer medical-related queries, which differ for each insurance company.

Simplified issue life insurance is another cheap life insurance coverage available for term and permanent life insurance policies. While it’s another form of cheap life insurance, a fully underwritten cover is much more affordable.

Unlike fully underwritten life insurance, its approval process is much shorter: a few days or hours. The payment that any Canadian can get from this cover is also limited to around $1 million or less.

Guaranteed Issue Life Insurance

This is strictly permanent life insurance cover, requiring no medical exam or doctor visit. It also boasts a fast approval process of a few hours or, at most, a few days. Nonetheless, its coverage is the lowest of all the life insurance covers, at around $50,000.

While this insurance cover offers the lowest qualifications conditions, its premiums are the highest. This is not a cheap life insurance cover; many Canadians consider it a last resort. 

Most terminally ill individuals or those of very advanced age will consider this cover. That’s because these individuals won’t be able to qualify for other insurance covers and will have to settle for it.

How Much Does Life Insurance in Canada Cost?

Cheap life insurance Ontario is also possible when you know what a life insurance policy should cost. Knowing the cost of life insurance would allow you to determine the best time to apply for one. It would also enable you to make the best choices when choosing an insurer for your life insurance coverage.

The cost of life insurance in Canada depends on many factors, like the insured’s location, gender, age, etc. All these factors can drastically change the cost of your life insurance coverage, making it larger or smaller.

Nonetheless, we’ll provide an estimate of life insurance costs for individuals of various ages or sexes. Note that these prices are estimates, which can be a little bigger or smaller than what an insurance company offers. Regardless, they should give you an idea of what to expect for your life insurance premium.

  • Male of 30 years: $26.60
  • Female of 30 years: $21.50
  • Male of 40 years: $45.15
  • Female of 40 years: $33.40
  • Male of 50 years: $121.10
  • Female of 50 years: $82.86

These cover prices should suit non-smokers requiring a 20-year cover with $500,000 in coverage.

What are the factors that can affect the cost of your life insurance?

Earlier on, we stated that many factors could affect the cost of your life insurance policy. If you desire cheap life insurance, you must understand how these factors affect you. That way, you can make appropriate plans to reduce the cost of your coverage.

Gender

It has been an undisputed fact in the 21st century that females have a higher life expectancy than men. This means that ladies live much longer than men and can be said to offer a lower risk to the insurance company. As such, insurers require men to pay more premiums than women if they agree to insure them.

Age

Older individuals are more likely to fall sick or die. So, insurers consider older individuals a more significant risk than younger individuals; hence, it’ll cost more to insure older individuals. So, if you desire cheap life insurance Ontario, applying for one when you’re young is best.

Health

The health of a Canadian determines the risk that the insurers undertake to cover them with an insurance policy. If you’re sick or have a history of sickness in your family, you’ll pay more for your life insurance.

Policy Type

Term insurance policies are much cheaper than permanent life insurance policies. Fully underwritten life insurance is also more affordable than simplified issue or guaranteed issue life insurance. So, you should consider the type of life insurance policy and the policy cover you want when determining the price.

Smoking Status

“Smokers are liable to die young” is a popular statement today, and it’s true. Smoking affects your lungs and some other organs in your body, which can reduce your life expectancy. So, it’s only natural that insurance companies consider smokers a greater insurance risk than non-smokers. As such, you should expect to pay more to acquire life insurance cover as a smoker.

Coverage Amount

A 10-year insurance cover and a 20-year insurance cover won’t cost the same. The 20-year insurance cover will require higher premiums than the 10-year cover. This is because the insurance company takes on more risk by covering you for 20 years than they would for 10.

Lifestyle Risk

Many Canadians work dangerous jobs as policemen, construction workers, firefighters, miners, and roofers. Others have risky hobbies like parachuting, mountain climbing, underwater diving, and mountain biking. These are all dangerous lifestyles where death or injuries can come at any time. So, insuring individuals who work such jobs or have such hobbies presents a significant risk to insurance companies. As such, these individuals would have to pay a higher premium than others.

Factors to Consider Before Choosing a Life Insurance Company

Many companies and corporations offer life insurance in Canada. However, the quality of the life insurance these companies offer is never the same. Some insurance companies offer better life insurance covers than others, with lower premiums and more considerable death benefits.

So, if you want to pick the best insurer, there are a few factors that you have to consider, such as:

Price

This is one of the most critical factors in choosing a cheap life insurance company. The cost of the premiums for a particular coverage period is something that you need to consider when making your choice.

If it were in the past, comparing the costs of two insurance coverages would require a lot of calls and travel around. However, technology and the internet have made things easier today, as you can check all this information online. You need to visit a good comparison site, and you’ll find all the information you need.

Online Reviews

The internet has also made it easy to gauge the capabilities of a company online before you visit them. So, before choosing an insurance company, you should check review sites and see what other Canadians think about them. You could also check that platform’s social media handles to see their users’ comments.

This way, you’ll be able to tell if an insurance company is good for you or not. Take care to avoid insurance companies with overwhelmingly negative reviews.

The Financial Health of the Insurance Company

No one wants to hear that the company they’ve been paying insurance premiums to has suddenly filed for bankruptcy. This means the insurance premiums they’ve paid for all these years amounted to nothing.

As such, you should always review an insurance company’s information to gauge their financial health. You can do this by reviewing their audit reports to ensure the company is financially sound.

The Legal Status of the Company

Paying premiums to an insurance company that can’t boast of legal status is very risky. It doesn’t matter if they offer affordable life insurance; you must ensure they’re registered in Canada. You should also be sure that trustworthy parties like the Canadian Council of Insurance Regulators regulate them.

These trustworthy third parties can vouch for the legitimacy of the companies they regulate. This way, you can feel safer using their services.

Companies That Offer Cheap Life Insurance in Canada

In the section above, we talked about what to look for if you want to choose a life insurance company. Below are some Canadian insurance companies that fulfill those criteria and offer affordable life insurance.

Policy Advisor

This insurance company was established in 2019 and offers online insurance policies for Canadians. Policy Advisor is well-known for their numerous life insurance policies.

Pros

  • Numerous life insurance covers to choose from
  • A live customer support advisor to help with the insurance application
  • Option to compare their offers with various insurance companies

Cons

  • Their services aren’t available in all Canadian provinces

PolicyMe

PolicyMe is another insurance company that offers cheap life insurance for Canadians. This company offers completely online life insurance covers, and their service is available in many Canadian provinces.

Pros

  • No medical tests required
  • 30-day money-back guarantee
  • Easy insurance cover cancellation process

Cons

  • No in-person communication
  • Not available in Quebec

Loans Canada

Although they don’t offer cheap insurance covers, Loans Canada is an excellent spot to find insurers that do. This platform was established in 2012 to link Canadians to lenders best suited to their needs. They can also help you find cheap life insurance companies as well.

Pros 

  • Fast application process
  • Completely online insurance application
  • Option to compare various insurance companies 

Cons

  • Some of the insurance companies shown to you might not accept your application.
cheap life insurance

Tips for Getting Cheap Life Insurance Canada

Many Canadians find life insurance expensive because they are going about things incorrectly. They make many little mistakes that increase the cost of their life insurance coverage. If you want to get cheap life insurance, you can apply some of the tips below:

Go For Term Life Insurance

Among the two major types of life insurance, term life insurance is usually cheaper.

Consider the Insurance Medical Exam

Although guaranteed issue life insurance promises insurance cover without medicals, the costs are always high. If you want to reduce costs, just take the insurance medical exam and get fully underwritten insurance cover.

Consider Numerous Options

There are many insurers for life insurance in Canada, and they’re all competing with each other. So, you can always get cheaper life insurance from one of them. Don’t be afraid to search before making your choice.

Purchase Insurance When You’re Young

Life insurance is always cheaper when you acquire it at a young age. There’s a big difference between life insurance costs for a 30-year-old and a 40-year-old individual.

Reduce Your Alcohol Intake and Quit Smoking

Life insurance can be costly when you’ve got a smoking habit or drink regularly. If you want to reduce the risk the insurance company sees in offering you insurance, quit both habits.

Cheap life insurance conclusion

Life insurance is a contract you make with an insurance company to pay your family or other beneficiaries when you die. However, you’ll need to keep paying the insurance company a premium until the cover expires or you die. The premium you pay depends on many factors, like the type of life insurance, the period of cover, etc.

You’ll need to take many courses of action to make your life insurance policy much more affordable. We’ve outlined the steps you need to take in this article. Take those steps, follow the guides, and you’ll be paying for cheap life insurance.

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September 21, 2023
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FAQs about cheap life insurance

Is a health exam necessary for life insurance?

No, a health exam is not necessary for life insurance cover. That’s because some forms of insurance, like guaranteed issue life insurance, don’t need it. However, both a fully underwritten life insurance cover and a simplified issue life insurance cover require a health exam.

What is the cheapest type of life insurance in Canada?

The cheapest type of life insurance in Canada is term life insurance. This type of insurance provides coverage for a specific period of up to 40 years. Sometimes, term insurance covers the insured up to a certain age.

Is it possible to get two life insurance covers?

Yes, you can get two different life insurance covers if you can afford their premiums. Of course, some insurance companies might not allow you to take out two life insurance policies at once. Nonetheless, you can acquire life insurance coverage from two different companies.

Can I cash out my life insurance cover?

Yes, you can cash out your life insurance policy. However, the cash value you can get from the cover depends on the type of insurance you applied for. When you withdraw all the accumulated cash value from your insurance policy, the policy will be terminated.

Can I use my life insurance to build wealth?

You can use your life insurance to build wealth by collecting permanent life insurance. This insurance policy lets you use your cash value to collect loans. Some permanent life insurance policies, like universal life insurance, offer investment features.

Cheap Life Insurance
made simple

Get the scoop on budget-friendly life insurance options.

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