Top Factors Influencing your Life Insurance Premium

Life insurance acts as a financial safety net for your loved ones. If you have anyone relying on you financially, you need life insurance. In case of premature death, the resulting loss of income may have an adverse effect on the lives of dependent members. Choosing the right plan requires some thought and consideration. Here are some things to consider before you purchase life insurance: 1. How much life insurance do you need? In order to determine your life insurance coverage, you need to look at your financial situation and current lifestyle expenses. We all want to leave our family a sizable sum of money so they’ll never have to worry about money, right?

Calculate how much insurance do you need

Choosing a very high payout can, however, result in very expensive premiums, and if you fail to pay the premiums, your dependents won’t receive anything. Life insurance is not as complex as it sounds. Professional guidance will enable you to choose the most appropriate insurance policy, the most affordable rate, and most importantly, the right insurance company. 2. Type of life insurance There are two major types of life insurance available in Canada: term life insurance and permanent life insurance.

  • Term life insurance Term life insurance is issued for a set number of years, usually between 5 and 50, and is typically bought at a young age like when you get married or start a family. It is offered up to a maximum age of 85. If the policyholder has paid their premiums by the due date and dies within that term, the death benefit is paid to the beneficiaries. 
  • Permanent life insurance Permanent life insurance provides coverage for life and the premiums are fixed. The premiums do not increase with age but are higher than that of term insurance. Benefits like guaranteed death benefit payout, cash surrender value, automatic premium loan, and paid-up insurance make the high premium worthwhile.

Unsure about the type of plan you need? Book a meeting today. 3. Lifestyle and Income A lot of factors determine the cost of life insurance including coverage, age, income, health, medical and family history, gender, and occupation. In general, the risk increases as you get older. These factors are used to calculate the mortality risk that a person represents to an insurer. Lifestyle habits such as smoking or high-risk activities, increase the premium cost as the risk to life increases. To get a free life insurance quote, click here and book a meeting to discuss the best plan for you and your family. 

— Aman Ahuja 
Financial Security Advisor 
[email protected] 
Life | Critical | Super visa

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