Applying For Life Insurance is Easier Than You Think!
You already know that you really should have life insurance and applying for this coverage is easier than ever yet you’re still putting it off…
Life insurance is a necessity for most Canadians and for those with mortgage debt and dependent spouses and children, is absolutely critical. Sure you can apply for coverage through your mortgage lender or you may have some amount of coverage through a work benefit plan but neither of those insurance plans are really adequate and are almost surely not providing enough protection. So you probably already know you need to setup an independent life insurance policy but you just don’t have enough time right?
For those still saying that they’ll apply “soon”, I’ve got some additional motivation for you. The cost of life insurance is going up and the sooner you apply, the lower the rates will be that you can lock in for as long as you like. You see, insurance products are priced by a variety of factors including long term interest rates and the regulations, taxation and other rules that the insurance companies have to work with. Well, interest rates are at an all time low and the cost of running an insurance company is steadily climbing so these added costs are being built into future insurance policies. In addition, each year you grow older your insurance premiums are based on this new higher age.
Sure that makes sense and you know you should probably get the life insurance policy in place but again, you feel like you don’t have enough time right? Well let me tell you how easy it can be to setup a fully underwritten and approved life policy. First you should make sure you meet with an independent advisor who is willing to show you a comparison quote for the price of the coverage you require across all Canadian insurers. Prices can vary widely and someone who only quotes one bank or insurance company product may show you a price that is 25% or more higher than what you need to be paying! For example, a $500K 20-year term policy on a healthy 30 year old male should cost $35.55/month but if you were to go to a single supplier, you could pay $37.02 (Manulife), $40.05 (Sunlife) or even $41.13 (TD Insurance)!
That difference may not sound like a lot but the $41.13/month over 20 years would add an extra $1,339 of wasted premiums!
Once you’ve confirmed what type of plan you require and run the quotes across all carriers, you will need to fill out an application. The life insurance advisor will walk you through this easy process and it should take no more than 20 minutes. Next you will receive a call from a paramedical nurse who will come by for a 25 minute appointment where they will take your basic vitals (height, weight, blood pressure, etc) and ask you some medical history and lifestyle questions. Once this information is sent off to the underwriters and comes back approved, you will need to meet with the life insurance advisor again for 10 minutes to sign off on the policy and put it “in force”. That’s it – in under one hour, you can have this all wrapped up and your family can have the much needed protection that they deserve.
Don’t have 55 minutes to spare in your busy schedule (or live somewhere remote or work on the road)? The process can be even easier. One insurance provider even has an online application process. So instead of driving in to see the insurance advisor at their office, you can fill out the application over the computer (while talking to the advisor by phone) and skip the two office visits. Total process time can be cut down to 30 minutes or less!
So there you have it, the life insurance application process explained. There’s no excuse anymore to putting this vital protection off for another day so dedicate an hour of your life to ensuring your loved ones are protected today.