Wednesday, 21 May 2014

6 Tips to help you save on Life Insurance

Purchasing life insurance is an integral part of financial planning. For most people, the need for life insurance arises when there is a need to protect an asset of a loved one. Here are 7 tips that can help you save money on your life insurance policy:

1. Apply young - The younger you are the less you’ll pay

Applying for life insurance at an early age allows you to lock in a rate based on your current age and since insurance companies are all about managing risk, the younger you are the cheaper your rate will be.

2. Quit smoking

Smokers generally pay double on their life insurance then non-smokers. Most policies define a non-smoker as someone who hasn't smoked for 12 consecutive months. If you know you need life insurance, it might be a good time to quit.

3. Clean driving record

As mentioned earlier, insurance companies are all about managing risks. One of the things insurance companies take into consideration during the underwriting process is your driving record. Having a history of speeding tickets and other traffic related offences might play against you when applying for standard rates. Try and keep a clean driving record.

4. Consider paying Annually then paying monthly

Most insurance companies on the market will provide consumers with a slight discount on premiums when paying annually versus monthly. If your financial situation allows it, it will most likely be beneficial for you to pay annually and save money. Many consumers also like the fact they don't have to think about the monthly payment and prefer to cut a cheque every year.

5. Keep a healthy lifestyle

Insurance companies pay close attention to your weight and overall lifestyle. In certain cases you might even be eligible for a better rate then the one you applied for if you’re in great shape. People who exercise regularly and maintain a healthy lifestyle will most likely perform better on their medical exam which is a major component in the underwriting process.

6.  Seek the help of a Financial Advisor

Choosing the right insurance policy for you is not a simple task. The decision to move forward with Life Insurance relies heavily on your health status, your budget and your objective with purchasing life insurance. Working with a licensed Insurance Advisor can help you find the right policy for you based on your subjective needs and objectives. Thier job is to help you figure out the right amount you need to protect yourself and your loved ones and match that with a proper life insurance policy.

For more information please contact Independent Financial Concepts Group today at 1-416-849-1653 or visit