Term life insurance: Money-saving tips (they do exist)!

Term life insurance is the most affordable way to protect your family’s future. As inexpensive as term life insurance is, there are money-saving tips that will ensure you are paying only what you need. Get the most value for your dollar by checking out the following helpful tips that will save you money while still getting great protection.

1. Get life insurance coverage early...the younger you are the less your annual premiums will be.

Some people are gamblers by nature and choose to take their chances by skipping out on life insurance when they are young. Although it is unlikely you'll die during your working years, you're not insuring for what's likely to happen but instead, for the worst-case scenario. That's why term life insurance is inexpensive for young, healthy people. Buying life insurance when you are young means you'll be providing financial security without spending a lot of money for it.

For example, if we look at the cost to purchase a $250,000 Term 10 life insurance policy you’ll see how delaying purchasing a policy by just a few years could cost you more in annual premiums. The Term 10 life insurance policy was chosen here because it is the most popular life insurance product sold in Canada.

Age	Premium - Male	10-year Total Cost	Premium - Female	10-year Total Cost
30	$203	$2030	$153	$1530
35	$215	$2150	$173	$1730
40	$260	$2600	$215	$2150
45	$373	$3730	$273	$2730
*Lowest quote offered online at kanetix for a non-smoker in January, 2007. Premiums shown are the premiums if paid annually.

2. When your age, isn’t really your age.

Your next birthday may be 6 months away but in the eyes of most life insurers you’ve already hit that next magical number. When you get a life insurance quote, the rate you are given is usually based on the age you are closest to which, 50 per cent of the time is your age at your next birthday. It’s a term called “Age Nearest”, and that half-year price increase could really add up. See the difference yourself.

Age	Premium - Male	10-year Total Cost	Savings	Premium - Female	10-year Total Cost	Savings
35	$215	$2150	$100	$173	$1730	$70
36	$225	$2250		$180	$1800
40	$260	$2600	$230	$215	$2150	$130
41	$283	$2830		$228	$2280
45	$373	$3730	$270	$273	$2730	$250
46	$400	$4000		$298	$2980
*Lowest quote offered online at kanetix for a non-smoker in January, 2007 for $250,000 in coverage. Premiums shown are the premiums if paid annually.

3. If you’re a smoker ask about incentive programs aimed at helping you quit.

While not all life insurance companies offer incentive programs to help you quit, some do and could save you money if you are thinking about buying life insurance and quitting smoking. For example, one such company will refund you an amount equal to the difference between the premiums you already paid as a smoker and those you would have paid had you not smoked. What’s more, once you quit smoking, this same company will adjust your premiums to non-smoker rates based on the age you were when you purchased the life insurance policy, not the age you are at the time you quit!

4. Check out your payment/billing options.

Many life insurance companies offer discounts to consumers who pay their annual premiums up front. If you have the money handy, you could save anywhere from 3.5 to 12 per cent of your policy’s premium each year. Check it out:

	Male		Female
Age	Annual cost if paid in advance	Annual cost if paid in monthly installments	Annual cost if paid in advance	Annual cost if paid in monthly installments
30	$203	$219	$153	$165
35	$215	$233	$173	$187
40	$260	$281	$215	$233
45	$373	$403	$273	$295
*Lowest quote offered online at kanetix for a non-smoker in January, 2007 for $250,000 in coverage.

With these money saving tips in hand, term life insurance is more affordable than ever. There is no better time than now to get the coverage you and your family need.