REDUCE LIFE INSURANCE PREMIUMS BEFORE AND AFTER BUYING A POLICY
Insurance costs can be affected by many factors. Average Canadians spend $58 per month (approx. $700 annually) on e.g. $700 annually) on e.g. Term life insurance. This is a major cost block. This article will outline the main ways to reduce these costs.
There are many reasons why your life insurance premiums are high. It is important that you understand the options available to you before and after purchasing your policy. This will help you keep your premiums low and not affect your coverage.
YOU PLAN TO GET LIFE INSURANCE: WHAT CAN YOU DO TO LOWER THE COSTS?
There are many things you can do, aside from getting multiple quotes and shopping around, to get lower life insurance quotes.
1. You should apply for the policy as soon as you can – Canadians typically apply for life insurance when they get married or start having children. You will get better rates if you apply earlier. Statistics show that Canadians pay $40 per month on a Term Policy with similar coverage ($250-500k), $47 per month for those aged 35-39, and $64 per month for those 51-55.
2. When applying for the policy, be healthy. Because they are overweight, many insurance customers end up paying 25% more for their policy. This extra cost can be eliminated by staying in good shape and living a healthy life. You may also get a discount up to 25%.
3. Before applying for insurance, you should stop smoking. To be eligible for the standard premiums, insurers will require that you smoke no more than once a year. If you don’t smoke, expect to pay almost twice the premiums.
4. Driving safely will earn you a reward from your auto insurance company as well as your life insurance provider. A poor driving record can lead to additional 25-50% in costs. Insurance companies can decline you if you have a poor driving record and are involved in multiple at-fault crashes.
IF YOU HAVE A LIFE INSURANCE POLICY, HOW CAN YOU LOWER IT?
Surprisingly many people don’t know that they can lower their insurance costs by purchasing a policy. It is important to increase your risk profile so that it is less risky for insurance companies. Here are four easy ways to increase your risk profile.
1. You can quit smoking – Your insurance rates may be reduced if you can show that you have stopped smoking for at least one year.
2. Reduce your alcohol intake. This will have a positive impact on your insurance budget. It is time to speak to your insurance provider after one year without drinking. It is okay to have a few glasses of wine every week. However, it will not affect your insurance rates to drink three to four beers per day.
3. Weight loss – Improving your health and physical fitness can have a positive impact on your life insurance premiums. Not only can you reduce your premiums, but you may also be eligible for a Premium Health Customer Discount of up to 25% on your life insurance premiums.
4. Continue to drive safely. If your insurance company has given you a policy that includes a high-risk driving record, it is possible that your life insurance rates have increased by 25% to 50%. Insurers will see that you have been involved in three or more criminal offenses. You can adjust your insurance premiums accordingly.