Top Tips for Buying Life Insurance

Photo of author
Written By LoydMartin

To provide clarity and guidance in the complex realm of insurance, ensuring our readers and clients have the knowledge to secure their rights and their future.





Insurance is likely to be the last thing on your mind but it will definitely be the first thing on your mind in the event of an accident or natural catastrophe. Best Insurance Online aims to provide Canadians with the most current insurance information.

Evaluate Your Current Financial Situation

Stafford states that you must have a complete picture of your financial situation before you can determine what type and how much life insurance you need.

Make sure you are aware of what you have in order to help loved ones who are financially dependent on you. These include retirement savings, an emergency fund, and life insurance coverage. It is possible that you are not as prepared as you think.

Find out how much coverage you need

People underestimate the amount of life insurance they require, according to Adam Winslow (CEO of Aviva UK & Ireland General Insurance), part of Aviva’s international savings, retirement, and insurance business. They often think about how much they would need to pay off major debts, like a mortgage.

Select a Type of Life Insurance Policy

Many people think of whole life insurance as term life. A term policy provides coverage for a set period, typically 10, 15, 20, or 30 years. This policy can provide affordable coverage that will cover you until you reach a financial milestone such as paying off your mortgage, or sending your children to college.

Learn How Your Life Insurance Rate Affects You

When determining your rate for coverage, the two most important factors that life insurance companies consider are age and health. Winslow states that the life insurance you purchase is more affordable if you’re younger than you should be. This is because younger people are healthier and thus less likely to need insurance.

Rates will vary depending on what type of policy you have and how much death benefit you receive. Your premium will also be affected if you have a term-life insurance policy.

Compare Life Insurance Companies to Get the Best Rate

Numerous insurers provide free online quotes, making it easy to compare quotes for life insurance. Rates can differ so it is important to get quotes from multiple companies before you make a decision about which company you want to apply for coverage. An independent agent can also help you to find the best insurance coverage for the best price.

Do not buy cheap insurance – After a loss, the worst time to discover that you don’t have enough coverage. Although it may seem like a good deal at the time, the unpleasant aftertaste of not having enough coverage or adequate coverage will last a long time.

Check your coverage – I know that reading an insurance policy can be a great way to get sleepless nights, but it is important to understand what your coverage covers and what exclusions may apply. After your 16-year-old wraps his car around a telephone pole, you don’t want the exclusion for young drivers to be revealed. Your agent can explain your policy to you if you don’t want to read it. It’s a great opportunity to make sure that you have all your assets covered.

If you have it and it is valuable, INSURE IT. Insurance is quite affordable. Insurance companies use the law based on large numbers to determine rates. It is therefore a good idea to insure any item of significant value, given its relative cost. It will be a wise decision.

As your life stages change, adjust your coverage. For example, life insurance is more important for young families with children. You will not need it if you have no dependents in your twilight years. Your coverage should be adjusted accordingly. Consider moving your adult children from your auto policy to your own. Your coverage should be adjusted to suit your lifestyle and stage in life.

Add new assets to your policy. Do you own a new vehicle, boat, or motorcycle. You have a 30-day grace period for adding new items to most policies. You are then on your own, as coverage will not apply to the item until it is added to the policy.