Looking for life insurance quotes in Ontario? You certainly have lots of options in 2017!
Twenty years ago, people would pull out the ole’ telephone book to find someone to call for a quote. (I’ll admit it… I’m old enough to remember telephone books.)
Now you can find life insurance quotes online. It’s easy: All you do is Google “life insurance quotes Ontario” and boom: instant results. Isn’t technology fantastic?
The only problem is there’s too many results. In fact, the phrase “life insurance in Ontario” has over 15 million results! (Imagine how big telephone books would be today if they listed everything on Google!)
Having lots of choice is great. But sometimes you need a map to guide you along.
And if you need help navigating all your life insurance quote options, this article is your map! I’ll show you 5 pro tips to get accurate life insurance quotes for your situation.
Life insurance quotes in Ontario: From Yellow Pages to Google
Getting life insurance quotes today is now quicker than getting your morning double-double at Tim Horton’s.
You don’t have to call someone to get a quote anymore. Tech savvy life insurance brokers (like me!) now have quote software built into their websites. These apps give you life insurance quotes from several companies in just a few seconds.
And when it comes to life insurance, shopping around is crucial. The difference in price for the same life insurance product can be as much as 70 percent! So you need to get multiple quotes from different companies.
A life insurance broker is your best bet. Brokers can shop several companies for the best price. Life insurance agents, however, can only sell products from the company they represent.
Compare plans – and save over 40%
Life insurance quote? There’s an app for that.
Life insurance quote apps are pretty straightforward. But you want to make sure you input things correctly. Like all software, the rule “garbage in, garbage out” is in effect.
So here are my 5 pro tips to get life insurance quotes in Ontario that you can actually use:
1) Your province:
Pretty easy, right? Just select your province.
But you might be wondering: Does my province impact the price I pay for life insurance? The short answer is no.
Unlike car insurance, life insurance rates are not based on your province. That means life insurance rates in Ontario are not higher or lower than the rest of Canada. Life insurance rates are actually based on demographic factors like your age, sex and medical history.
Your province comes more into play when purchasing a policy. When in comes time to buy, you need to go through a licensed professional. Licensing and regulation in Ontario is run by the Financial Services Commission of Ontario (FSCO).
2) Smoking status:
Choosing your smoking status may not be easy, either. Marijuana is the reason why things are a little foggy here (…in more ways than one).
In Canada, the legalization of marijuana is a hot topic. So you might ask: How does marijuana impact life insurance?
Most companies classify anyone who uses marijuana – either recreationally or for medical purposes – as a smoker. And as you probably know, smokers pay higher rates than non-smokers.
But that’s starting to change.
Two Canadian companies have started to ease up on marijuana users. Sun Life now offers non-smoker rates to marijuana users who don’t smoke tobacco. BMO Insurance is offering better rates to recreational users who smoke up to a max of two “marijuana cigarettes” per week.
In the case of marijuana use, it’s a good idea to consult a life insurance broker to get the latest definitions.
3) Health class:
Before issuing a policy, a life insurance company will determine your health risk. These risk assessments look at your health, as well as your lifestyle choices. Poor health and lifestyle choices will increase your life insurance premiums, all else equal.
For example, smoking is a lifestyle choice associated with health complications. That’s why smokers pay higher rates than non-smokers.
When it comes to the life insurance quote app, many people choose the best health class for themselves (i.e. preferred plus). It’s just human nature.
In fact, the phenomenon where everyone thinks they’re above average has a name in psychology: the “superiority effect.” (But after watching the new US president for a month, I recommend changing the name to the “Trump effect.”)
The Trump formula?
It’s important to know that only 30 percent of applicants get a better than average health rating. So it’s a good idea to be conservative when choosing your health class. As the saying goes, “It’s better to be pleasantly surprised than bitterly disappointed.
4) Type of insurance:
Most life insurance quote apps give you a variety of policy types to choose from. Some policy types have complicated names, like “UL T100 minimum premium pay to 65.” (Yikes!)
Don’t worry. It’s not that complicated. All types of life insurance fall into two categories: term and permanent.
Term policies are designed to cover temporary needs, like income replacement or debt coverage. Your need for temporary life insurance declines over time. For example, you don’t need income protection once you retire.
When using the quote app, you need to choose a type of insurance. You can generally identify a policy type by its name. Term policies usually have the word “term” in its name somewhere. The most common term policies are for 10, 20 and 30 years.
By contrast, permanent policies are designed to cover your lifetime needs, like estate wishes. Permanent polices usually have the words “whole life” or “Universal Life (UL)” in their names.
When comparing quotes, you’ll find term policies are much cheaper than permanent policies. That makes sense: term policies may or may not pay out a death benefit. Permanent policies (if held to maturity) will pay a death benefit at some point.
5) Amount of insurance:
As we’ve seen, life insurance prices are not set by province. But where you live does have an impact on your life insurance bill. It’s due to the different living costs across Canada.
In Ontario, salaries are higher relative to other provinces. Houses are more expensive, too. So it makes sense that the amount of coverage you need to protect these assets in Ontario will be higher.
The average life insurance coverage per individual in Ontario is $203,000. The average life insurance converge per household in Ontario is $400,000
The average life insurance converge per household in Ontario is $400,000.
But how do you determine the right amount of insurance coverage for your situation? To get a quick estimate, there are a few things to consider:
First, take a look at the asset you’re protecting. If you’re married with kids, you’ll want to protect the income you provide to your family. A good rule of thumb is to have 5 to 7 times your pre-tax income in coverage.
Second, look at your debts. You’ll need to cover your mortgage or any other debts if you don’t want to saddle your loved ones with those expenses.
Finally, consider any estate intentions you might have. Even if all your temporary needs are gone, you might still want to leave a lump sum to your beneficiaries.
Of course, a life insurance professional can give you the most accurate assessment. Many brokers use a “needs analysis” that looks at your entire family and financial picture.
Conclusion:
There you have it: Five pro tips to help you get an Ontario life insurance quote that’s right for your situation. These tips will help you avoid wasting time pursuing the wrong policy.
But that doesn’t mean you are on your own. If you run into trouble, make sure to reach out to a life insurance broker. They are the best source to help you shop around for that perfect policy.
Compare plans – and save over 40%