Life Insurance for Canadians with Diabetes: How to Get Covered and Save on Premiums?
Did you know that you could save hundreds of dollars a year on life insurance in Canada? Depending on your age, health, and the type of coverage you need, life insurance can cost as little as $14 a month for basic term coverage. In this article, we’ll show you how to find affordable life insurance that fits your budget, and reveal how much you could potentially save by shopping smart and comparing options.
Factors That Impact Your Life Insurance Premiums
Your life insurance premiums will depend on various factors. Understanding these will help you determine how much coverage you can get at the best possible price.
• Age: The younger you are when you apply, the cheaper your premiums. For instance, a 30-year-old non-smoker can expect to pay less than half the premium of someone 10 years older.
• Health: If you’re in good health, you’ll pay lower premiums. Conditions like high blood pressure or diabetes could increase your rates.
• Lifestyle: Engaging in high-risk activities (e.g., skydiving or racing cars) could increase premiums significantly.
• Coverage Amount: The more coverage you need, the higher your premium. However, choosing the right amount of coverage ensures you're not overpaying for unnecessary extras.
20-year term policy with $300,000 coverage cost only $14/month for a 40-year-old, non-smoking female!
How Much Does Life Insurance Cost in Canada?
The cost of life insurance varies based on your individual circumstances. Let’s break down the approximate monthly premiums for different types of life insurance policies:
Term Life Insurance: This is typically the most affordable option. A healthy 35-year-old can expect to pay:
• $500,000 in coverage for 20 years: $25–$30/month
• $500,000 in coverage for 30 years: $40–$45/month
Whole Life Insurance: This is more expensive as it provides permanent coverage and includes a cash value component. A 35-year-old non-smoker might pay:
• $250,000 in coverage: $150–$250/month
Universal Life Insurance: This offers both coverage and an investment component. Costs for a 35-year-old non-smoker could range:
• $250,000 in coverage: $250–$300/month
How to Find Cheap Life Insurance in Canada
Finding cheap life insurance requires shopping around and comparing quotes. Here are some tips and resources to help you save money:
1. Use Online Comparison Tools
Several websites allow you to compare life insurance quotes from multiple insurers. Here are some of the most popular tools in Canada:
• PolicyAdvisor: Offers an easy-to-use online platform where you can compare rates from over 20 life insurance companies.
2. Look for Discounts and Group Coverage
Many insurers offer discounts for non-smokers, healthy individuals, and those who bundle multiple insurance policies (e.g., home and auto insurance). Additionally, some employers provide group life insurance at discounted rates.
• RBC Insurance: RBC offers discounts for bundling life insurance with home or auto policies. A typical term life policy can cost as low as $20/month for a healthy 30-year-old.
• Sun Life: Offers group life insurance for employees, which can be significantly cheaper than individual plans. The cost could range from $15–$25/month for basic coverage.
3. Seek Professional Advice
Insurance brokers can help you find the best deals, especially if you have unique circumstances or need a customized policy. Brokers have access to a wide range of insurance companies and can tailor a policy to fit your budget and needs.
Affordable Life Insurance Providers in Canada
Let’s take a look at some of the top life insurance providers in Canada, along with their typical premiums:
1.Manulife
Manulife is one of Canada's leading life insurance companies, offering both term and permanent life insurance policies.
• Term Life Insurance:
A 35-year-old non-smoker could pay approximately $26/month for $500,000 in term life coverage for 20 years.
• Whole Life Insurance: A healthy 35-year-old could pay $200–$250/month for $250,000 in permanent coverage.
2.Canada Life
Canada Life is known for its affordable term life insurance options, with some of the lowest rates in the market.
• Term Life Insurance: A 35-year-old non-smoker could pay about $22/month for $500,000 in coverage for 20 years.
3.Sun Life Financial
Sun Life offers competitive premiums and multiple options for term and whole life insurance.
• Term Life Insurance: A healthy 35-year-old could pay as little as $25/month for $500,000 in term life insurance (20-year term).
• Whole Life Insurance: Premiums for permanent coverage are higher, with rates ranging from $180–$230/month for $250,000 coverage.
4.Industrial Alliance
Known for its budget-friendly term life options, Industrial Alliance provides solid coverage at affordable rates.
• Term Life Insurance: A 35-year-old can pay as little as $23/month for $500,000 in coverage (20-year term).
5.RBC Insurance
RBC is a trusted insurer that offers competitive rates on term and whole life insurance.
• Term Life Insurance: Premiums for a 35-year-old non-smoker start at about $27/month for $500,000 in coverage.
Tips to Save Even More on Life Insurance
Improve Your Health: Insurance companies reward non-smokers and those with a healthy BMI. Losing weight and quitting smoking can lower your premiums.
Choose a Longer Term: Opting for a 30-year term instead of 20 years can lock in a lower rate for a longer period.
Consider a Higher Deductible: Some insurers offer cheaper premiums in exchange for a higher deductible, meaning you'll pay more out of pocket before the policy kicks in.
Conclusion
Life insurance in Canada doesn’t have to be expensive. By understanding the factors that influence premiums and using comparison tools like PolicyAdvisor and Kanetix, you can find coverage that suits your needs and budget. Whether you’re looking for basic term coverage or permanent life insurance, there are affordable options available. With the right approach, you could save hundreds of dollars annually and secure your family’s financial future at a fraction of the cost.