Life Insurance in Canada

US life insurance sales took their greatest six-month drop since 1942, reported by LIMRA International. Bloomberg News reports that individual life insurance sales have nose dived 20% in the second quarter of 2009 because savers turned their backs on investments linked to stocks.

In Canada, LIMRA tells a different tale. In Canada these drops were only reported at 14% for universal life policies, a massive 6% difference to the US, using Steady Term Life and Whole Life policies to compensate for the losses. All told, there has only been a 1% drop in annualized payments so far in 2009.

Most financial planning consists of at the bottom line one type of Life Insurance even if the family cash flow is tighter in the US. Most households would find that there is a financial nightmare to contend with, if a family member dies without leaving adequate life insurance. For family members left behind, life insurance policies supply security from monetary problems.

Life Insurance plans don’t have to destroy the bank, there are ways to save on your premiums. We have put together some cash saving hints to get the utmost out of your life insurance.

Refrain from accidental death insurance. Lots of Canadian insurance companies heavily market accidental death insurance to unsuspecting consumers. Accidental death is extremely profitable for these companies, but produces only rare benefit to the consumer because less than 3% of all life insurance claims are paid out thanks to death-by-accident. Accidental death insurance can usually cost more than a comparable term policy.

Be wary of sales people that only sell for one company. They can only sell that business’s goods. Independent brokers often charge less expensive premiums set side by side to companies that employ captive agents. When an representatives is tied into one company’s policies they are unable to look for policies that best meet your needs or your pocket.

Less expensive policies can work out more expensive for you. The early premiums could be cheap, but work out the overall cost as it could be more expensive than purchasing a slightly higher priced policy in the first place. A gimmick insurance companies use to acquire your business is offering reduced premium introductory offers. Term insurance policies, which offer low initial premiums that rise as the insured ages, are appropriate if used for temporary insurance needs. The main problem with this attitude is we are not all the same, nor do we all have the same needs. A speedy sale without finding out what is the best policy and best price for your circumstances is something few brokers and representatives concern themselves with.

organizations that offer preferred rates are what you need to be searching for. The difference between preferred and standard rates can be very significant, notably for term policies. For example, buying a standard rate $500,000 Term 20 policy with Equitable Life would setback the normal 40 year old, non-smoking male just over $62 per month. Taking the equivalent details, using the preferred rates this policy would cost just about $20 less

Establish whether you are not over insured. By utilizing our Needs Analysis Calculator you can find out at a flash whether you are over or under insured.

Independent brokers are there to support you - employ them. However you must be certain he/she has access to a full breadth of companies not just two or three.