It is our nature as humans to do everything we can to protect ourselves. Protecting our lives is the most valuable thing we have and it makes sense to do everything possible to keep them safe from all kinds of harm. While everyone has their own way of handling things, there is one thing that we all recognize as a necessity in today’s financial stability. Being able to afford a comfortable lifestyle is an essential part of life. It is also important to take care of others. There are many tools that can provide this benefit, but life insurance is the most important.   The idea that life insurance policies should be purchased as soon as possible is widely supported. It is not surprising that young people are questioning the necessity of life insurance. According to the 2018 Insurance Barometer Study conducted by LIMRA, Life Happens, and LIMRA, 84% of Americans accept life insurance. We have compiled a list of 10 reasons why young people should purchase life insurance.  

1. Lowest possible premiums

When purchasing a life insurance policy, the only thing you need to be concerned about is how much premium you will pay. The fact is that the policy will be more beneficial if the premium is lower. This simple fact is directly linked to the insurance company‘s mortality statistics. Although the exact time of death cannot be determined, it’s clear that most people die when they reach old age. This means that young people have a greater chance of survival during their policy term. Insurance companies are very concerned about this as they depend on policyholders to pay the full amount. This simple fact can help young people get lower rates and a larger policy.  

2. Money-saving

People sometimes purchase life insurance to increase their savings. Although it may not be the best way to achieve this goal, it can still be used as an additional source of savings. A life insurance policy is a great way to diversify your portfolio if you already have savings sources. You should look into products that specialize in saving life bank deposits and other investment schemes.  

3. Future planning

We have already discussed how it is our nature to take all steps for our self-preservation. Insurance is the best tool to secure our future. To ensure that you can provide for your family’s future, you need to purchase life insurance. Although life insurance is often considered an additional source of income for your family members, it can also be a great way for you to save a lot of money for yourself when your policy matures. These are just a few of the obvious situations. You can also cash out your policy early if you have a major financial emergency.  

4. There are many options for insurance

Insurance companies see a decline in an individual’s ability to insure as they age. Insurance companies become less likely to offer insurance at low rates for every person they pass through their life stages. Young people have a high level of confidence and every company wants to make you a customer. You may find sales people chasing you down to your home and knocking on your door one after the other. You have a lot of options, so you can negotiate the best premium and maximum benefit.  

5. Expenses During Emergencies

Here’s another reason to purchase life insurance while you’re still young. Some policies include savings plans. This is one of the many benefits. This means that you can make money from your policy to increase its cash value, if necessary. Your insurance policy may be able to help you create a new savings account if you don’t have one. This will allow you to cover small expenses in an emergency. However, it is important that you don’t use your insurance policy to save the most. It would be costly and not cost-effective. There are other options.  

6. Family protection

Family members are the most important people in a person’s life, after themselves. You should have your spouse and children as your beneficiaries for your life insurance. Your absence in the future could lead to financial hardships. It is possible to get the best policy for your money by purchasing life insurance early in your life. It’s better to get rid of this burden early in life when you have more financial freedom than later when bills start piling up. You should purchase life insurance early in your life. For the benefit of your family!  

7. Proper non-employer coverage

Young people are often discouraged from purchasing insurance because their employers offer them life insurance. Keep your eyes on the big picture and consider the long-term. Many people mistakenly consider that this coverage is both sufficient and permanent. You will not only lose your coverage but also you won’t get any benefit even if it is continued. These packages provide the lowest possible coverage in order to save the employer as much money. If you’re a young employee and have company job insurance, you might be wondering why you should buy life insurance while you’re still young.  

8. It’s better to be safe than sorry

Your health is a ticking bomb when it comes time to buy life insurance. It may seem that you think you are young and healthy and don’t need life insurance. You could be in danger of getting sick or have other medical issues that require coverage. This situation could lead to your premium going up and insurance companies possibly refusing to cover you. If you don’t have a fixed rate policy, having dependents that need to care for can cause stress.  

9. Clearing off debts

Many young families don’t have enough savings. This means that it is often difficult for young families to pay off large debts. These could include college fees, mortgage payments for a new home, or other debts they might have accumulated while setting themselves up. A life insurance policy can be very helpful for dependents. It can also help to avoid stress during a difficult time.  

10. Peace of Mind

This is a great option for younger people as well as for older persons. You can live your life knowing that your family and liabilities will be covered in the event of an unfortunate event. You don’t have the ability to predict what the future will bring. These options are available so you can rest easy at night. A young, healthy person will naturally ask why they should buy life insurance as a young person. We believe these are enough reasons to make life insurance a priority for everyone. It is important to be prepared for the unexpected.

Being a parent is an exciting experience. This period is a time when you’re constantly on your toes. It is important to keep an eye on your baby and read their implicit cues. Buying life insurance is not something you want to hear. Have you really given it thought?

If you don’t have a child dependent on you, maybe there isn’t much to worry about in the event that something goes wrong. The story changes when a child is involved. It’s not good to dwell on anything that could lead to a negative outcome for your family and friends, but it is better to accept the reality. What if you were not there tomorrow? Your children will still be able to smile knowing that their education and expenses are covered and they don’t have to worry about getting the next meal.

Protecting your children and spouse is a sign that you care. Your family will always appreciate your financial safety net. This guide for new parents to life insurance outlines the most important aspects every parent should understand.

What is life insurance and how does it work?

When you die, life insurance pays your beneficiaries a set amount. The death benefit is the amount that is paid to beneficiaries. The amount of the death benefit payable to beneficiaries is determined by the insured. The amount of death benefit to be paid will depend on the needs and the number of dependents.

To ensure that the insurance company honors its agreement, you must have adhered to the terms and paid your premiums on a regular basis.

Types of Life Insurance 

You can choose to have life insurance for the short term or a long term.

Term life insurance is a policy that covers you for a limited time. Term life insurance policies can last for up to 30 year. Term life policies are usually purchased when our dependents cannot live without our income. These are times when one has a young child or when they have to service loans.

The insurance company will pay the death benefit to beneficiaries if the insured dies while the term life policy remains active. If you purchase a term policy that covers life insurance and live beyond the stipulated time, the contract with the insurer ends and you can buy another policy. The insured will usually have other income sources and savings available to the beneficiaries by the time term life insurance runs out.

Permanent life insurance is another type of life insurance. Permanent types provide coverage for the insured throughout their life, as long as they pay the premiums. Your beneficiaries will be paid regardless of whether you die today or forty years later. Permanent life insurance includes universal life and whole life. Permanent policies come with a cash value addition, which means that you will pay higher premiums.

You need to choose the right type of life insurance for your child as a parent. Term life insurance is best if you are looking for coverage that will last a few months. Permanent life insurance is a better option if you have someone who will depend on you for a longer time, such as a child with a disability. If you wish your insurance to grow in cash value, this is a great option.

Why life insurance is good for your family 

The family is left in pain if the breadwinner loses his income. The family and any dependents require protection. In the event of your death, the death benefit will protect your family from the financial consequences.

Life insurance allows your family to maintain their standard of living using the amount you have set. Your property will not be sold if you have mortgages or debts. Also, your children won’t receive eviction notices. You had a plan.

Even if the insurer is not yet alive, the cash value component of life insurance can be a benefit to the family. The cash value can be used to finance future income-generating projects by the insured. After many years of paying life insurance premiums, you will have enough cash value to cover the next premiums. This allows you to channel the premium money to other uses.

Checklist for New Parents’ Life Insurance

This checklist will help you, as a parent, give your family the best life insurance. These are some things you should think about before buying life insurance.

Do you need life insurance?

Life insurance is essential for most people because they don’t know what tomorrow will bring. Anybody with dependents should have insurance. Dependents can be parents who are ill, school-age children, or spouses. Even if there are no dependents, they will still need to pay final expenses and estate taxes. These expenses are expensive, and life insurance can help you ensure that your costs are covered.

What length of insurance coverage do you need?

Permanent life insurance policies, such as whole life insurance, are a great option for those who wish to plan their estate and want long-term coverage.

What amount of life insurance do you need?

As always, it’s best to get a professional analysis done if you have any questions. 

The Application Details 

The insurance company will need to have some information about you in order to approve your application for life insurance. This information is used to assess your health and ability to pay the premiums. This will require you to provide accurate information about your income, health, and lifestyle. It is important to be truthful when providing this information as lying could result in the termination of your contract with the insurance company.

Are Both Parents Required to Have Life Insurance?

You might not like the idea of having two separate policies. A joint life insurance account allows you to have one policy and the death benefit is paid to the spouse who survives.

How to Choose the Beneficiaries 

Beneficiaries are people or organizations that receive the death benefit upon your death. Be informed about who you choose to be your beneficiaries. For example, a minor will require a guardian to be appointed through a legal process before payments can be made. Although most people would like their spouses to be the beneficiaries, there are other options.

Life insurance is something that every parent should consider. It can be a huge help in the event of your death. Compare life insurance policies and find the one that suits you best. This guide will help you to be informed when you sign the contract with your insurance company.

The impact of marijuana legalization in Canada went far beyond the lives and health of cannabis users. The Cannabis Act, or Bill C-45, that came into effect on October 17, 2018, sent ripples across the life insurance industry as well – there was now one more lifestyle factor to consider in the lives of customers.

The industry has made changes to marijuana and life insurance since then. These adjustments include how they process applicants and how they calculate premiums. Importantly, pot users can now purchase life insurance policies that fit their lifestyle and needs without having to pay higher premiums.

We’ll be covering these factors in this article – the most frequently asked questions, types of policies, and key points to consider when looking for life insurance as a cannabis user:

 

The Key Takeaways from Marijuana and Life Insurance

• Life insurance companies had to re-evaluate the impact of legalization on their premium rates after it was announced that marijuana is now legal.
• Some life insurance providers will still approve you instantly if you’re a recreational marijuana user.
• An underwriter will refer you to someone to help you understand your marijuana use.
• It is possible to get life insurance for Cannabis users.

 

Life insurance before Marijuana Legalization

Insurers had been reviewing their life insurance offerings to cannabis users before Bill C-45. The public’s attitudes towards marijuana were changing and so was the number of cannabis users. As marijuana became more mainstream, insurance companies began to pay more attention.

They began to update their underwriting protocols. One of the most significant changes was to remove marijuana from the high-risk category tobacco occupies. As early as 2016, some of the largest insurance companies began to do this, stating that marijuana users would not be charged smoker rates unless they also used tobacco.

Other factors that distinguish users are their purpose and frequency of use. For example, those who use it for recreational purposes less than once a week could be eligible for non-smoker rates. For medical reasons, the coverage rates would be comparable.

 

How do insurance companies view Marijuana users?

Here are some factors insurance companies take into consideration when creating quotes for marijuana users.

 

Lifestyle Factors

Companies will need to verify that customers have disclosed their marijuana use when applying for life insurance policies. Many policies require medical examinations to support this, including blood and/or urine test. However, policies can be arranged that do not require these tests. We’ll get to that later.

Other than your medical test results, important factors include your lifestyle, general health, family history, and whether you smoke. To determine whether you are a high-risk or low-risk policyholder, life insurance companies use determinants. If you smoke or have health problems, you’ll likely be considered higher-risk and pay higher premiums.

 

Marijuana Use Frequency, Methods & Purpose

The same applies to marijuana users who use it recreationally or medicinally.

Some insurance companies don’t distinguish between smoking a joint and eating a magic brownie. They will still provide the same coverage and rate for life insurance. Some companies are more accommodating with edibles and will offer a non-smoker rate, even if you smoke less than two cigarettes per week. Cannabidiol (or CBD oil) is less likely than other drugs to impact insurance premiums.

Recreational marijuana use is generally considered low-risk. Another risk factor is a history of anxiety or mental illness. When combined with marijuana, this can make you more vulnerable. You should also consider whether marijuana affects or impairs your driving ability.

A rule of thumb is that the premiums for life insurance will be higher if you are in poor health.

 

Life insurance for Casual Marijuana users VS. Regular Marijuana Users

Marijuana users must pay attention to what insurance companies consider ‘frequent use’.

Some companies limit you to two or fewer joints per week. Others have a maximum of four joints per week. Companies will consider you a frequent or regular user if you smoke more than this. You are exposed to the same risks as a smoker.

There are three types of life insurance policies that you can choose from. These are the standard life insurance policies that offer 1) non-smoker and 2) smoker rates.

An underwritten policy requires blood or urine samples. The non-smoker rate will be more expensive than the smoker, but they are generally cheaper for users of marijuana. You should be prepared to take the above exams and give a complete medical history. If you are approved for coverage, your premiums will be lower.

This third option does not require medical exams. These insurance policies can be classified as either a 1) simplified-issue life insurance that covers several health-related questions, but does not require a medical exam, or 2) guaranteed issue insurance that does not include any questions or requires no medical exams. The insurance company is at greater risk without underwriting. This can lead to a higher insurance premium and sometimes, even less coverage. Non-medical policies may also have a “no benefits period”, which can look like two years before you are eligible for any payouts should anything happen.

 

Are there any drug tests that I need to pass when applying for life insurance as a Marijuana user?

We’ve seen that there are many options for marijuana users who want to apply for life insurance.

Non-medical life insurance policies require an underwriting process. A complete underwriting process requires a medical exam, which includes a drug test.

Your application includes free blood and urine tests that can help you identify whether or not you are a marijuana user. Tetrahydrocannabinol, or THC, is the chemical that shows up in blood between three and 14 days of use, or in urine up to a month after.

These tests can also be used by insurance companies to check that you are telling the truth about your use. You must be honest with your applications. Insurance fraud is when you lie on your application. There are consequences if you don’t tell the truth, such as:

• Your application can be denied
• Your dishonesty can be shared with other providers by your insurance provider
• Your policy can be canceled if fraud is discovered
• Your family could also lose their payout if the worst happens. They will likely ask for medical records to confirm any history of marijuana use, including blood and urine tests.

 

Which questions should life insurance companies ask about Marijuana?

Are you a smoker? Here are some examples of the questions that insurers might ask you when you apply for life insurance.

• Do you use marijuana? What type of marijuana do you use? How often and how much?
• Were you prescribed by a healthcare professional for Cannabis use? If yes then please state the reason.
• Have you ever consulted a medical professional, received any treatment, or been recommended for treatment or counseling for drug use?  
• Have your job duties been affected or restricted in any way due to drug use? Have you lost your job, or have you missed any time from work or school because of drug use?
• In your past, have you ever been hospitalized or treated for a drug overdose?
• Have you experienced or suffered from any medical condition or impairment related to your drug usage?
• Are you or have you ever been a member of Alcoholics Anonymous, Narcotics Anonymous, or a similar association?
• Have you been charged with impaired driving or had your driver’s license suspended, been arrested due to the influence of alcohol or drugs? Have you been required to attend court-ordered alcohol or drug awareness programs?

Life insurance is designed to provide some financial security to your loved ones after you’re gone. The money can be used to pay off debts, pay your spouse’s pension, or pay your children’s education costs. There are many types of policies available. It could be a financial disaster for your family if you don’t have the right information. These are the most common mistakes that people make when buying life insurance policies.

The Wrong Type Of Life Insurance Policy

There are two basic types of life insurance: term and permanent. Term policies provide a defined death benefit and are in effect for a fixed time. Term life insurance can typically be purchased for a 5, 10, 15, 20, or 30-year term.

Permanent life insurance, on the other side, is in place throughout your entire life. It can be divided into three types: Whole life, Universal, and Variable Life. A whole life insurance policy allows you to build cash value that you can draw against later on. Different types of investments are linked to universal and variable life policies.

You will need to decide what you want from your policy when deciding between term and permanent life insurance. You can then weigh the benefits and costs of each policy. A term policy might be the best option if you have to pay your mortgage or other monthly bills and your spouse is not present.

You might also be looking for policies that can earn you some returns on your investment. Permanent policies are worth looking into if you’re willing to pay a bit more.

If you are overwhelmed by the choices and unsure of how a life insurance plan can fit into your other financial goals, you might want to speak to a financial advisor. Talking to a financial advisor can help you discuss your priorities (retirement, college tuition, etc.). In the context of making certain, you can meet your family’s goals even if you have to leave.

Underestimating your life insurance needs

In addition to choosing a policy type, you should not just pick a number from thin air. This way you will run the risk of selling out your beneficiaries later on if you don’t do your research.

When determining how much life insurance you require, there are many factors to take into account. These factors include your age, overall health, and life expectancy. You may not require as much coverage if you have a substantial nest egg and don’t have a lot of debt. If you have young children, and your spouse isn’t working, you will need enough insurance to cover them over the long term.

It is important to not underestimate the worth of your spouse who is not working. You won’t need to have life insurance to replace income lost in the event of your spouse’s death. This money can be used to cover expenses such as child care and housekeeping.

Do not compare life insurance rates

You should shop around for the best rates, just like with any type of insurance. Signing up for a life insurance policy without comparing rates for a few different companies could end up unnecessarily costing you money.

You should ensure that you are providing the same information to all insurers when you look at multiple plans. To find any differences in coverage, you should also review all policies. This will help you get the best quotes.

Putting a focus on Life Insurance price

Sometimes, the price of purchasing life insurance can be too much to resist. You might be tempted to reduce your coverage to get a lower premium. Life insurance is something you cannot afford to cut corners on.

Your out-of-pocket expenses are a greater concern. It is important to consider whether the savings you make now are worth the potential impact on your loved ones when you pass away. You may want to review your budget if you feel that life insurance is too expensive. You might be able to cut costs before you decide to get less coverage.

Waiting Too Long To Buy Life Insurance

The earlier you purchase life insurance, the better. As you age, your premiums will increase. Even if your health is good, premiums will increase each year that you delay. You also run the risk that you will get a serious illness, which could lead to higher premiums or even being denied coverage.

Bottom line

You should not forget your life insurance policy once you have decided on it. Regularly review your policy to ensure it meets your needs. You can have peace of mind knowing that you have the right coverage for you and your loved ones.

Do any of these ring true for you?

• You’ve thought amount moving in with your partner 
• You’re thinking of getting married 
• You’re currently looking for your dream home 
• You are planning your wedding day 

There’s another important item that you might forget to think about and that is buying life insurance with your special someone.

Life insurance for couples can be considered one of the most important investments you make together. This is a way to invest in your future together and provide peace of mind. Your partner will be protected no matter what.

What should you look out for? What are the best providers for you both? This article will cover everything you need to make an informed decision.

• Why is it important for couples to have life insurance

• Why you should purchase life insurance

• There are many types of insurance that couples can choose from

Why Couples Should Have Life Insurance

You may share financial responsibilities if you are married or live with your partner. A shared mortgage, children to support, joint bank accounts, or co-signed loans might be some of the things you have in common. If one of you passes away earlier than you expected, the other partner will be responsible for paying all expenses together – unless they have life insurance.

Life insurance provides financial security for the spouse and dependents (e.g. children or parents who are aging) It protects your dependents in the event of your death or that they are unable to pay their bills and continue their lives.

It is for these reasons why life insurance for couples is so important. It covers your whole family. This financial contribution can be made from income earned through employment, or other contributions that lower family costs such as a stay-at-home parent who provides “free” childcare.

Life insurance does not eliminate the emotional burden of death. It can help reduce the financial stress that your family would experience if you or your partner die unexpectedly.

What is the best time to buy life insurance for a couple?

It doesn’t mean you have to get life insurance quotes the first time.

It’s important to have this conversation when you begin to bring more of your life together. When you have shared responsibilities and dependents, it’s a good time to think about life insurance for couples. This is the most common moment when people get married or begin living together. It’s a significant milestone and where assets start to combine.

You probably have more expenses now than ever. You might have just paid down a home or gone all out for a wedding, which you are now paying off. Or spent a lot of money on gear for your baby. It might be tempting to delay buying insurance for a while.

If you are healthy, the chances of dying in your 20s and 30s are very low. It’s also a time when you might not be as financially secure in the future. Your salary isn’t as high as it would have been in ten years. This makes any expense seem more difficult right now. It could prove difficult for your partner financially if one of you dies unexpectedly.

The good news is that you can buy life insurance when you are young. You’re likely to be in good health at this age, which means you are less risky to insure. It is less risky to insure. You can lock in a lower rate if you and your partner apply sooner than you think.

Types of Life Insurance For Couples

There are two options available if you’re looking for life insurance together: Single or joint life insurance. Each has its pros and cons so let’s take a look at these two options when it comes to life insurance for couples.

Single Life Insurance

You and your partner can each purchase life insurance for yourself. The death benefit of one of you pays to your beneficiary when the other person dies.

Why do some couples buy policies as individuals instead of as a couple? There are several benefits to purchasing single-life insurance policies together, such as:

• You have the flexibility to select different coverage amounts: You can select different lengths and coverage levels with different plans. If your financial contributions are different or expected to last for a different amount of time, this is a good option.
• Longer coverage: The policy of the other partner will continue to protect them until they die if one of you passes away.
• Simpler division if necessary: You won’t have the hassle of splitting your coverage into separate policies if you and your spouse are married. Your individual policies will continue to cover you.

Flexibility comes with a price, just as when you purchase airline tickets. It is more expensive to buy two life insurance policies than one.

Joint Life Insurance

You have the option to purchase a joint policy for life insurance if you are married or in a common-law partnership. A joint insurance policy covers you and your spouse. Your death benefit depends on the type of policy you have. It pays out when your partner dies, or when your spouse has died and is paid to another beneficiary (a second-to-die policy).

You’ll typically pay less if you have two policies, but you will usually pay less if you have joint life insurance. The cost difference may be minimal if you are both young and in good health.

You should also be aware of the limitations associated with joint life insurance policies.

• The same timeline: It’s easy to keep track of different coverage periods and plans. Joint life insurance will provide the same coverage for both you and your partner.
• Protection for the surviving partner: The policy’s first-to-die clause doesn’t cover the spouse who is still living. A new policy can be expensive, depending on the age of the surviving partner.
• Higher rates possible in the future: You will need to apply for a new insurance policy if your relationship ends before you die. You will be more costly to insure if you are older.

What do you think?

Joint life insurance may be the best option for you if you want to reduce costs and are eligible to apply for it. If you feel that it is more important to have robust and flexible coverage for the whole time you plan to use it, you can opt for two policies.

 

How to find the best life insurance for couples

Many insurance companies offer coverage for you, your partner, or both. Sometimes even one plan. How do you choose the right provider?

Here are some things to consider when looking for the best couples life insurance:

• Price: You want to get the best price. If you and your partner apply for coverage, some insurers will offer a discount.
• Faster approval time: You don’t want to wait for approval for months. Consider these options: Insurers that respond quickly to applications.
• Electronic document and application delivery: This is an important aspect of the criteria. You will typically receive coverage quicker if you choose an insurance company that accepts applications electronically and can deliver insurance documents electronically.

Lastly, speak with a trusted broker who isn’t looking for a quick buck. Many insurance companies still use high-pressure sales tactics but it doesn’t have to be this way. You can get a free insurance quote from a company that doesn’t have commission sales reps. If you think the coverage is right for you and do not want to be pressured visit our Quoting Application to get a quote without having to add your personal information.

Canadians are concerned about their health and safety as they prepare for the future.

Our team here at TIP Services is still receiving questions about the impact of COVID-19 regulations on the life insurance industry. We answer all your questions in this article.

 

Coronavirus & Life Insurance

• While the application requirements are largely unchanged, the execution has been modified to accommodate COVID-19 restrictions.
• More applicants have had their applications delayed or temporarily denied due to a COVID-19 diagnosis.
• Certain products let you get completely new underwritten policies even in the event of a pandemic.
• Even though the number of cases is increasing, the price of life insurance remains relatively stable.

Life insurance covers deaths related to COVID-19

Both current policyholders who have COVID-19 coverage and those looking to get it now are concerned about receiving the death benefit.

Policyholders can rest assured knowing that you are covered even if you die from complications related to COVID-19. People who apply now will be fully covered in the event of a death due to COVID-19. Once your application has been approved and makes your first payment, there is no waiting period.

The exceptions that exist are the same exception as pre-covid:

• Suicide in the first 2 years
• Additional clauses in your policy that exclude specific causes of death, such as a skydiving accident (uncommon)

These exclusions are applicable to those who enter the pandemic with an existing insurance plan or new policyholders.

Processing Life Insurance Application Remains Largely Unchanged

The actual steps remain relatively the same. You will go through the same medical checks and nurse visits as before. You can complete your health questionnaire online or by phone.

Extra precautions are taken for any industry that can’t be done over the phone or online. Additional PPE is required for nurse visits. It’s also recommended that you wear a mask during home visits. It is likely that you will also need to wear a mask if your nurse visit takes place in a laboratory.

A short COVID questionnaire is required at the end of the application process. This questionnaire asks you questions similar to those that may be asked before any medical appointments. This could include:

• Have you traveled within the last 14 days?
• Are you in touch with confirmed cases of COVID-19 or have you met someone with this case?
• Are you experiencing any symptoms of Coronavirus (e.g., sore throat, cough, loss of taste or smell, fever)?

Remember to answer every question throughout the application process. This includes general health questions and coronavirus-specific questions. Your life insurance provider may deny any future claims if you are found to have been intentionally false in your application.

If you have COVID-19, you may not be eligible to apply for life insurance

Although you can still apply right away, if you are currently suffering from COVID-19, the insurance company may delay your application until you make a complete recovery.

These delays have become more frequent as the pandemic continues.

These delays are caused by COVID-19 at different stages of the application process:

• Your application is still being processed. However, your life insurance provider must know if you have been diagnosed.
• If you indicate that you have COVID-19 at the beginning of your application, providers may ask you to wait until you are healthy to submit your application.
• There have been instances where applicants were denied completely because they contracted the coronavirus while submitting their applications.

Why? It’s estimated that around 20% of Canadians who contract COVID-19 are ‘long haulers’ with symptoms well beyond the two-week mark. These unknowns are not something that many life insurance companies are prepared to accept.

It is important to apply for your policy sooner than you think. You can eliminate all the delays and worries about not being covered once you have a policy in place.

It is unlikely that your travel history will affect your life insurance application

The only way past travel would impact your life insurance application is if you ended up catching coronavirus on your travels. You may be denied if you travel after becoming sick.

But, it is possible that any travel planned for the upcoming months could have an impact. The details of any trip planned for the next 12 months will be important to your potential insurer. It is a good idea to keep track of your planned travel locations, such as cities, regions, timing, and other details before you start the application process. This could cause delays to your application as non-essential travel is still discouraged.

While it won’t affect your premiums, it could impact the length of your application, especially if you don’t contract COVID-19 during your travels.

As of now, life insurance prices are not increasing as a result of COVID-19

The concern about life insurance price increasing is parallel to the increase of life insurance applications. Prices are rising because of the law of supply and demand.

If you have an existing policy then-No. Even during the coronavirus pandemic, the rate you secured will not change. Signing early is important as you get locked with a lower rate.

Prices for new plans have remained stable despite COVID-19’s additional risks. Prices for Term Life Insurance across the board haven’t seen this increase.

This is not a blanket statement. Some companies have hiked prices for certain permanent life insurance policies up to 27% for new applicants.

You Can Shop for Life Insurance Now

Yes. It’s actually easier to shop online now than at the beginning of the pandemic.

Everyone was looking for ways to migrate their practices online and abide by the safety protocols when meeting patients, clients, and customers. Although the application process is not yet fully online, there is more COVID-19-related information that will help make this process seamless.

You can make the application process easier by looking for policies with instant approvals. You can find companies that will provide you with a fully underwritten policy, based on the questions you answer. No nurse visits will be required.

Last Thoughts on Life Insurance and COVID-19

The industry will change as COVID-19 evolves. Different companies may have different policies for the same type of policy. Each policy should be tailored to your needs and budget. Coverage should be available to you at home so that you can get protection without breaking the bank.

Smoking, chewing, or vaping tobacco can increase the cost of life insurance. Smokers can sometimes pay twice or more for life insurance than those who are not smokers.

Although life insurance can be more expensive for smokers, you still have the option to get life insurance. You may also be eligible for life insurance at a lower rate depending on your personal circumstances.

 

How smoking can affect your life insurance rates

The insurance company will conduct a complete medical exam when you apply for life insurance coverage. This is done to ensure that you get the best type of life insurance at a fair rate. Underwriting is the process by which your insurance company learns if you smoke or not.

You are more likely to get other health conditions from smoking, which can make it harder for you to live a healthy life. This makes you a greater risk for the life insurance company to cover and causes you to pay more for the same amount of coverage as non-smokers.

If you smoke, you will be considered a smoker for the purposes of your life insurance.

This means that even if you don’t use chewing tobacco, your life insurance rates will still be calculated as a smoker. It is important that you tell your life insurance company all about your tobacco use. By lying about it, the insurance company may withhold your death benefits from your beneficiaries.

Tobacco and smoking can increase your risk of developing many conditions that could lead to your health deteriorating. This can make it more difficult to get insurance. Smokers can be charged up to $2,000 for life insurance. Two or three times what a comparable policy costs for a non-smoker.

 

Other Factors that Change the Cost Of Smokers’ Life Insurance

Smoking can have a significant impact on your health, which is meaningful to life insurance companies. Your life insurance company will likely consider other factors when deciding how much life insurance you will pay for if you are a smoker.

These factors include:

Overall Health

Although you can smoke and be healthy, smoking can increase your risk of developing other health conditions that could reduce your life expectancy.

These are the conditions that can come from smoking:

• Increased chance of Cancer

• Increased risk of Heart disease

• Increased chance of having a Stroke

• Lung diseases

• Diabetes

• Chronic obstructive lung disease (COPD).

• Emphysema

• Tuberculosis

• Certain eye diseases

• Immune problems

These additional health problems are more common for those who are older and have smoked longer.

The life insurance company will review your medical records to determine if you smoke. They will also scrutinize your pre-qualifying medical screening.

Your premiums could be lower if you’re found to be in good health despite being a smoker. Your premiums may not be as high as those of someone with a similar medical history to you, but who is not a smoker.

 

You can also choose other lifestyle choices

Although smoking can have a significant impact on your overall health and lifestyle, it can also affect the amount of life insurance you purchase.

If you are considered overweight or obese and aren’t taking steps to get your health in check, it can cause your life insurance premiums to be higher. Your life insurance company may think you don’t care about your health and aren’t exercising enough.

 

What does quitting smoking have to do with the price of my life insurance?

 

You can reduce your premiums if you’re a smoker. There are some things that you should know before you quit smoking.

The best way to lower your life insurance premiums is to quit smoking.

You must quit smoking to be eligible for non-smoker premiums for life insurance. For a minimum of one year, before you apply for life insurance, You must have stopped smoking to get better rates like Preferred or Plus rates.

It is always a good idea not to smoke, but it’s best to stop smoking if you are unable to qualify for lower rates.

Waiting to purchase a policy until you get a lower rate puts your family at risk. Depending on your age, these few years could lead to an increase in your premiums. This could offset any reduction that you get from quitting smoking.

It is best to apply for life insurance right away, even if smoking has not stopped. After quitting smoking for at least one year, you may request a rate reconsideration in order to determine if you are eligible for lower premiums.

 

Are Life Insurance Policies for Smokers Worth It?

Life insurance for smokers can be more expensive than for non-smokers. Some people believe that buying life insurance is not worth it.

It’s always a good idea for your family to have life insurance. Smokers are more likely than non-smokers to develop a disease that can lead to premature death. This makes it even more important to have life insurance.

 

What can I do to reduce my life insurance costs as a smoker?

Many people wonder how to get the best price on life insurance.

Here are some important things you can do to find the best life insurance policy for smokers:

 

Stop Smoking

This is the best thing that you can do to reduce your life insurance premiums and improve your overall health.

You can be eligible for premiums that are similar to someone who has not smoked for at least one year if you have been a nonsmoker for at least one year. You may also be eligible for Preferred or Preferred Plus rates if you continue to be smoke-free for at least five years.

Smoking can cause your life insurance premiums up to three times higher than if it were stopped.

 

Maximum Coverage

You will pay more for life insurance if you smoke. This is why it’s important to carefully choose the coverage that you buy.

There are many factors that will determine the amount of coverage you buy.

• Financial obligations such as child support

• Your salary

• Your children’s ages

• No matter if you have a mortgage or any other debts that need to be paid

You can save money on your premiums by purchasing a smaller amount of life insurance. However, it will still provide financial security for your loved ones in the event you die.

Choosing to smoke after purchasing life insurance 

When you purchase life insurance the company factors in your health at the time of purchase. This means if you own life insurance and pick up smoking after owning life insurance. Your premiums will not be affected. It’s only if you apply for new coverage will your rates change to smoker rates.

Conclusion

Finding low-cost life insurance for smokers can be difficult. It’s possible. It’s possible to make a difference by taking the time to determine the type of insurance that you want, the amount of coverage you need, and matching with the right company.

 

What is life insurance?

Simply put, Life Insurance is an agreement between you and your insurance company. You will pay a monthly fee known as the premium. In exchange, the insurance company will cover you with a specified death benefit. In the event, you (or the insured) pass away. Your beneficiary will collect the death benefit. 

The average monthly premium for most people is around $30-50/month.

Who needs life insurance?

Simply put, if there is someone who depends on your financially you should consider life insurance. You should consider purchasing life insurance if you wish to leave your loved ones with financial security.

Most of the people don’t know about benefits of life insurance and are confused whether to purchase it or not. Allow us to inform you of a bit of mystery: life insurance is a lot easier to purchase than you may think.

These are the key factors which could impact your rate

• Age
• Gender
• Smoking status
• Personal health
• Driving history
• Risky hobbies

 

Age

A 60-year old is more likely to die in the next 20 years than a 20-year old. The 60-year old will pay a lot more for a 20-year policy than the 20-year old. Sorry, there is no senior discount.

 

Gender

Gender can have an impact on your price. Women live longer than men. Their average life expectancy is 3 years higher. This means that women will receive slightly lower prices.

 

Smoking Status

Smoking can cause serious health problems and increase your chances of early death. Insurance companies are well aware of this. Smokers are twice as likely to get life insurance than non-smokers. They will therefore receive double the rates. Insurers will reward you if you quit smoking. After quitting smoking, you can get your rates reduced if you do not continue to smoke for at least 12 months. If you’re looking for another reason not to smoke, this can well be it!

 

Personal Health

Insurers will scrutinize your medical history when you apply for life insurance. Life insurance companies may increase your rates if you have suffered a stroke, heart attack, or other serious illness within the past 5 years. It is important, to tell the truth about your medical history when applying for insurance. Insurance fraud is lying about your health. This could result in a denied claim, which would be much worse than having to pay higher rates.

The good news is there are some great guaranteed life insurance options if you do have health concerns. 

 

Driving Record

Car accidents are the leading cause of death in Canada. Insurance companies will ask you if there have been any serious driving accidents within the past few years. Your rates could be affected if you have a DUI or have been convicted of careless driving. The most weight is carried by insurers when they look at your driving record.

 

Risky Hobbies

If your hobby is skydiving or amateur flying, you are more at risk than the average Canadian. These hobbies could have an impact on your insurance rate.

 

How do insurance companies gather information about all these factors?

Many insurance companies will request that you make a quick call to one of their healthcare professionals and answer 20-30 questions about yourself and your lifestyle. A medical exam is required by some life insurance companies to determine basic metrics such as height, weight, and blood pressure. This data will be used to determine the final price of your policy.

 

Term vs. Whole Life Insurance vs. Term

There are two types of life insurance available: Whole and Term:

Term life insurance covers you for a set amount of time. Usually, it is 10-30 years. Your loved ones will receive the amount you have paid if you die during this period.

Whole life insurance can also be called permanent insurance. This coverage is good for your whole life. It might not seem like much, but it is. You will eventually die and therefore you want to make sure your family is protected for as long as you can.

While whole life insurance premiums tend to be higher than those for term life insurance policies (although they are generally lower), they tend not to change with age. Your premiums are designed for cash value growth over the course of your life. This is not a cheap way to invest your money. It can be more difficult and expensive than other options.

 

Request a quote for life insurance

There are many places where you can get life insurance quotes. Numerous companies offer instant online life insurance quotes.

These quotes can only be based on 3 factors: your smoking status, age, and gender. These quotes are not tailored to your particular health situation. To confirm the rate your insurance company offers, you will need to go through life insurance underwriting. At least not for now, you can’t do underwriting with a click of a mouse.

How to purchase life insurance?

There are three main options for purchasing life insurance:

• Online access to a life insurer company 
• A local independent insurance broker can help you
• Online insurance can be purchased from an independent broker

Do some of these methods work better than others? 

 

Yes. It is smart to buy life insurance online or from a local broker. Why? Agents who only work for one life insurance company won’t be able to help you compare life insurance policies from different companies. Prices for life insurance can be very complex and may vary between companies for the same policy. It’s important to compare quotes and shop around if you don’t want to pay more for life insurance.

The first step in buying life insurance is to determine how much you really need. The amount you need depends on the financial situation of your family (including your spouse and dependent children) as well as your financial status. Do you have any outstanding debts? Is it possible for your family to supplement your income to pay their daily living expenses? Are you willing to pay for college educations for your children?

Online life insurance quotes

Many websites and online platforms allow you to compare and obtain life insurance quotes. These instant price quotes are often estimates. They are based only on 3 factors: your smoking history, your age, gender, and the amount of your income.

How to compare life insurance quotes?

Compare life insurance quotes from multiple companies to find the best rate. Prices will vary depending on what coverage you choose, your health, and other factors such as age and gender.

Do life insurance quotes impact your credit score?

Because life insurance companies don’t usually report payment history to credit bureaus, buying life insurance won’t impact your credit score.

Life insurance is not free. There are consequences to not paying your premiums for life insurance. Your policy will be canceled and your coverage will end. However, this will not directly affect your credit score.

Life insurance and COVID-19

You might start to consider buying life insurance or wondering how an outbreak could affect the policy you have.

The good news is that your life insurance policy will cover all causes of death once it is in effect. This includes any complications from COVID-19 and any other diseases. The only exceptions to this rule are suicide within the first two years and if your policy contains a clause exempting a specific cause (like skydiving if you’re a professional skydiver). But as always it’s best to check before purchasing life insurance. 

It’s no secret, we live in the age of transparency. It’s become more and more important to be transparent in every area of your life. As life insurance providers we realized many of the clients that come to us have been lied to by other advisors. So we thought it would be fun to clear up the 5 things your life insurance advisor isn’t telling you.

 

Your advisor is working on commission

The vast majority of life insurance advisors today are paid 100% commission. And they are not paid hourly or salary. Strictly commission. To make matters worse their commission is based on how much you pay per month for your life insurance. The more you play, the more they make.

 

Can you see how that’s a little problematic?

Now there are some setbacks for the advisor. One of them being “chargebacks”. A chargeback occurs when you the client either cancel their policy or pass away in the first 2 years of owning your policy. In this case, the advisor would have to pay back 100% of the commission they received.

The counter to this is to work with a company that has salary-only advisors. Even though there are only a few companies today that offer this, it will likely be the future of life insurance.

 

Are you really getting the best policy?

You see many companies in Canada claim to be a broker. However, that doesn’t mean they have access to every company in Canada. In fact, most brokers only have access to a select few.

It’s good to ask your broker which companies they work with.

If they only have access to a handful of companies you are left to wonder if you have the best policy for you or the best policy that particular advisor could get you. This may mean you are overpaying or receive fewer benefits than other competitors.

 

Are you missing out on savings?

There’s a number of ways you could be overpaying for your coverage.

Some companies might be very competitive with people between the ages of 30-40. But overpriced for anyone over 40. And each company is a little different. It may be possible to find a company that is more suited to your age or health status. Simply by changing your provider you may be able to save a little extra money every month.

This is only one of several different ways you could save on your premiums.

 

How you apply matters

For some reason, people lie on their applications thinking they will get a better rate. Unfortunately, this is also considered either fraud or misrepresentation. Most insurance companies would not be liable to pay out your benefits if they can prove you committed fraud.

It’s always better to be 100% honest with your application as it can be the reason your loved ones are financially protected.

 

Your need for life insurance changes

Unlike stocks, where you might have to review your portfolio every month, life insurance a little more long-term of a play. That being said, it’s not a set and forgets. Life insurance needs should be considered every 2-5 years depending on what changes in your life. And the good news is that as we get older typically our need for life insurance decreases.

All in all, life insurance is something that is incredibly necessary if you have someone who depends on you financially. But don’t let these 5 tips get past you.

What is Life Insurance?

Life insurance is for anyone who has a spouse, partner, or children who rely on them financially. This could also include anyone who is taking care of older parents or guardians. You can get a life insurance policy depending on your needs. This means that if your monthly income helps support your family’s expenses (anything from groceries to debt payments to monthly retirement savings contributions, etc.), you’re probably someone who needs life insurance.

The agreement is between the life insurance company and the individual. You pay a monthly fee and in return, your insurance company agrees to pay out a lump sum of cash (TAX-FREE) to your family (known as the beneficiary) if you pass away during the time that your insurance policy is active.

To get an easy quote go to quote.tipservices.ca and get a FREE quote instantly. 

How Does Life Insurance Work in Canada?

The structure of a life insurance policy is simple – you pay premiums each month to an insurance company over an agreed period of time. If you pass away when the policy is active (while you are still paying premiums), the insurance company promises to give your loved ones a tax-free lump sum cash payment (the “death benefit”) if you pass away.

This death benefit will help your loved ones paying monthly bills, final expenses, maintain their lifestyle, and accomplish those bigger goals, even if your paycheck isn’t coming in to help support them.

This leads people to look at two types of life insurance, Term Life or Permanent Life.

Term Life Insurance

Term life insurance pays out a tax-free death benefit to your loved ones only if you die within a specified number of years (usually 10, 20 years). Term life is the right option if you want protection for the years that matter most (when you still have a mortgage & children in the house). For most people term life insurance is going to be the best fit. It’s the most affordable option which will give you the largest payout for your dollar. However, term life insurance is something that one day you will likely cancel, which brings us to the alternative Permanent life insurance.

Permanent Life Insurance

Permanent life insurance pays out a benefit to your beneficiaries no matter when you die (hence why it is called permanent insurance). Permanent life insurance comes in a couple of different forms, including whole life or universal life insurance.

Permanent life insurance policies are much more expensive than term life insurance policies because the policy also acts as an investment account. Your premiums are designed to build cash value over your life. The best way to think about this cash account is like a forced savings account that will gain you better returns than the bank. As we write this most saving accounts in Canada offer under a 2% interest with many of the big banks being around 1%. The Cash Value in most life insurance policies offers about a 4-5% return on investment over the long haul.

Permanent life insurance policies are not for everyone. There is a place in the market for it, especially if you own a corporation. However, make sure you learn the inner workings before making a decision on permanent life insurance.

How Do I Buy Life Insurance in Canada?

There are three main ways to buy:

1. Directly with a company online (like TIP Services) where we can help you shop the entire market and find the best plan at the best price for you
2. Through direct to an insurance company
3. Through an online advisor only (these are an option, however often they act as a middle man, thus you would pay more for the same options)

Are you confused? Don’t worry we are here to help! Our non-commissioned staff are here to help you find the right plan and answer any questions you might have. You can open a chat or click apply now and we would be happy to help.