Let’s break this down into 2 sections

1. How to get term life insurance quotes

Getting the quotes is the easy part. You start by utilizing free resources like TIP services FREE quote tool. It allows anyone to find rates shop different products and get a sense for what’s out there.

Many insurance companies let you get quotes online. Ask yourself, are you getting the best a company has to offer or the best the market has to offer. You see these companies below:

Which company has the best Term Life Insurance Quotes?

They all have the best policy in the right situation. Rates and policies details change. Based on your age and health status Manulife might have the best policy today but it might be Sunlife tomorrow.

2. What to look out for

First, the product. You see not all term life insurance is created equal. Some policies may be cheaper than others but they may also lack the ability to convert into a permanent life insurance policy. Depending on your reasons for purchasing life insurance this may be something that drastically impacts you in the future.

Many clients will look for a Term 10 option as it will be the most affordable option for you today but maybe more costly depending on how long you need the coverage. Let’s run through an example.

A $500,000 Term 10 policy might only cost you $25.41 a month compared to a $31.66 Term 20 policy. That’s a great deal, right? Well, that depends on how long you need the coverage. You see, a Term 10 policy guarantees your $25.41 will NOT go up for the first 10 years of owning the policy. At year 10 the policy renews based on your new age (10 years older). That same policy would cost $56.10 a month going forward. Now if you need the coverage for 20 years (let’s say to cover your $500,000 mortgage) it would actually cost you more to own the term 10 based on simple math.

Term 20 total cost to own

$31.66/month x 12 months in a year x 20 years of owning = $7,598.4

Term 10 total cost to own for 20 years

$25.41 x 12 month x the first 10 years of owning the policy is $3,049.20 the second 10 years would be $56.10 x 12 months x the second 10 years of owning this term life insurance policy is $6,732. Meaning the total out of pocket to own a Term 10 policy for 20 years is $9,781.2.

Would you rather pay $7,598.4 or $9,781.2 to own the same amount of coverage for the same amount of time?

Second, sales agents that care more about their commission then the policy you relieve apply for. The main reason we created TIP SERVICES was just that. We wanted to hire advisors who were paid salary and not commission. We believed this would take the pressure off them and in turn our clients would receive the policy that best suited them.

As you could see in the example above that there are times to recommend and own a term life insurance policy where the cost to own may look higher today but is less in the long run. The only time a term 10 option would be the one an advisor should recommend is if the client needs the coverage, but can’t afford the higher amount today.

Third, the company they represent. You see when you meet with a Canada Life representative they are going to offer you the best Canada Life has to offer. But not necessarily the best the market has to offer.
That’s true for any company that only has access to one or two companies.

So who can you trust? Well I mentioned TIP SERVICES is there for you. We have advisors that are working solely on salary. That’s regardless of their commission. As of now, they are only in Canada.