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
35 $190 $1900 $150 $1500
40 $232.50 $2325 $187.50 $1875
45 $322.50 $3225 $240 $2400
*Lowest quote offered online at Kanetix for a non-smoker in April, 2011.
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
Cost
Savings
Premium - Female
10-year
Cost
Savings
35 $190 $1900 $75 $150 $1500 $75
36 $197.50 $1975 $157.50 $1575
40 $232.50 $2325 $150 $187.50 $1875 $100
41 $247.50 $2475 $197.50 $1975
45 $322.5 $3225 $250 $240 $2400 $175
46 $347.50 $3475 $257.50 $2575
*Lowest quote offered online at Kanetix for a non-smoker in April, 2011 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. If available, you may get a refund for the amount equal to the difference between the premiums you already paid as a smoker and those you would have paid had you not smoked.

4. Check out your payment/billing options.

Many life insurance companies apply an admistrative fee if you pay your premiums monthly. If you have the money handy, you'll pay less for your life insurance if you pay your premiums once a year. Check it out:

Male
Female
Age Paid yearly Paid monthly Paid yearly Paid monthly
35 $190 $205.2 $150 $162
40 $232.5 $251.16 $187.50 $202.56
45 $322.50 $348.36 $240 $259.20
*Lowest quote offered online at Kanetix for a non-smoker in April, 2011
for $250,000 in coverage.

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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.

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