Saving Money on Life Insurance
You can save money on your life insurance coverage by working with a broker. Brokers have the ability to shop around to ensure that you are getting the best price available in Canada for your insurance coverage.
If you are researching buying a policy, be sure to find out if you and your spouse are going to be on the same policy. Life insurance companies charge a monthly administrative fee on your policy. This is standard with every company. Some companies charge $5 per month per policy and some charge $10 per month per policy. Some charge $50 to $90 annually for the policy fee. This policy fee is built into the monthly cost of your total premium.
The key thing to be aware of is that some companies will only give you one type of product under one policy number. For example, you may have a husband and wife who each buy life insurance and then they each might buy Critical Illness Insurance. Some companies will bundle this coverage all under one policy number so there is just one policy fee. Some companies will give you 4 separate policies so you are actually paying 4 policy fees.
An easy way to determine how much you pay for the policy fee is to call your advisor or look in your insurance policy. It will be spelled out as to how much your policy fee is either monthly or annually.
Another way to save money is to pay your policy annually versus monthly. I recently quoted a 45 year-old man and his 41 year-old wife a 10-year $250,000 term policy each. They are both non-smokers and the cost was going to be $39.61 per month. If they paid for the policy annually the cost was $440.09 for a savings of $35.23 which is almost one month’s premium.
Most life insurance companies are set up so that you can make an annual payment online through your online banking or they will mail you an annual letter with an envelope and you can mail them a cheque. If you have the affordability to make an annual payment, then you can save yourself a little bit of money.
Go to our web site www.godfroyfinancialgroup.com and click on the heading “Life Insurance Quotes” to run some comparisons for you and your family or give us a call and we can run the quotes for you.
Total Savings: Could be $5 per month, could be $20 per month or more depending on the number of policies that you own.