Life Insurance

This article is the first article of a new set, where I detail some real solid tips on how you can save on your life insurance, and how those savings come from coming to see me, your life insurance broker, rather than going direct to an insurance company.

But first, let me give some tips about term life insurance Term Life Insurance is a wonderful tool for your insurance needs. It is inexpensive, and there are many ways that you can set it up, depending on your age, and you short and long term needs.

One very effective strategy is the "Term Layering Strategy"

The way it works is that rather than buying just one term life insurance policy for a certain term, you buy two or three policies, but with different terms. Here is an example:

So the 10 year term life policy will take care of the most immediate short term needs, as an example if the kids are very young, or you have some debts that are high right now, but you are paying them down.

Then, when the 10 years are up , the 10 year term drops off, but you still have the 20 & 30 year term in force. This is to cover some of the longer term needs, such as the mortgage balance, or the kids education.

When the 20 years are up, the Term 20 will drop off as well, but there is another 10 years left on the 30 year term. This will take care of the most long term issues, such as estate planning and some last expenses.

Of course, you may convert any portion of any of those terms to a permanent policy, to lock in a price, that will stay on forever- as long as you live.
One of the companies that we recommend this with is BMO LIfe Insurance.

The reason for that is that BMO has all three types of term policies, and the really cool thing is that BMO will not charge a policy fee for every policy, so you will save a lot of money by combining them all together.

Here is a good example of how this would look in real life:

If you were a 40 year old and your need for life insurance right now was $800,000, you could do the following combination:
T10 for 300,000
T20 for 300,000
T30 for 200,000

This way it would by quite a bit cheaper than by buying the whole 800,000 on a 30 year term basis.

So back to my original point.... to get deals like this done you need to talk an insurance broker. You see, whilst its within the power of insurance companies to offer deals such as this one, its not always in their interests to. Its more work, for less money. That's where Insurance Shoppers Canada comes in. We are always on the look out for ways to save you more money,