The three most important factors to consider when buying life insurance are:
1.) How much coverage do you need?
2.) How long do you want that coverage for?
3.) How much does the coverage cost?
Let’s start with figuring out how much coverage you need. Thankfully in this day and age you no longer need to speak to a life insurance broker. That’s a god send because speaking to a life insurance broker sux at the best of times. Bye bye broker, hello new world. Let’s face it, we’ve all been spending so much time at home lately, that sometimes the thought of speaking to a stranger, let alone a broker, is not a very appealing option. We’re kind of used to the hermit lifestyle now, aren’t we?
At dropdead Life Insurance, the application is extremely straightforward and quick and can be done in the comfort of your home. You can do it on the couch, you can do it in your bed, you can do it in the bath…. Yes, we’re still talking about applying for life insurance. Get your mind out of the gutter. Hehe. There are fifteen questions to answer that will take about fifteen minutes to complete. The dropdead website even has an explainer video to watch of the application process if you want to check that out first so you know what to expect.
The basic rule of thumb for the coverage amount is 10 times your salary. So, if you earn 100k, then one million of coverage makes sense. If your partner happens to be a stay-at-home parent that doesn’t earn a typical pay cheque, they would need 5 times your salary, so that would be 500 grand. That brings us to $1.5 million for the both of you. That’s the easiest and fastest way to get the right amount of coverage.
A slightly more dialed in approach would be to use a needs analysis calculator such as this one at dropdead life insurance. https://dropdeadlifeinsurance.ca/calculate-insurance-need/
The average Canadian buys $440,000 of life insurance coverage. That’s a good start. Remember, you can always buy more later if needed. You can have more than one life insurance policy, and as your needs change, add policies. If you buy a house, it would be a smart idea to buy more coverage. If you start having babies, you might want to add more coverage each time a little mini you enters the world.
Now, how long should you get covered for? The most common duration for a policy is 20 years. This is due to 2 main reasons. One, your mortgage is normally a 20-year term. A lot of folks buy term life insurance to mitigate that risk. If you die before your mortgage is paid, the life insurance policy can pay the mortgage so your loved ones get a house free and clear, not a pile of debt. Reason number two is kids. One hopes that by their 20th year the kids are largely off your pay roll. So, they may still be living in your basement and eating your food, but at least they are educated and if push comes to shove, they could theoretically get a job.
So, key points up to this juncture: 20 years is a good amount of time to get coverage for, and $440,000 is the Canadian coverage sweet spot.
Last but by no means the least is price. Term life insurance is the same across the board. It’s 100% commoditized. There is no difference between term life insurance policies. Don’t let a useless broker bullshit you and try and justify his exorbitant commission by telling your otherwise.
Buy the cheapest policy you can find. Yes that’s right, in this instance cheapest is best!!! Cheap, cheap, cheap just like the budgie. Compare prices if you want to, but the cheapest term life insurance in Canada is dropdead term life insurance. Go ahead and try to find a better price. If you do, they will match that price and give the difference to a charity of your choice.
You’re back!! Of course you are. No doubt still smiling at the price you have just gazed upon in disbelief. Can dropdead’s prices really be that low? Yes, they are!! No need to adjust your glasses. You read that number correctly and its made your night realizing how little it will cost for you to get covered. dropdead is the cheapest and the best. dropdead is the best not because their product is better. Remember it’s all the same shit. dropdead term life insurance is the best because:
1.) They are the cheapest
2.) You get a FREE Will
3.) You get to give to charity
No one else, and I mean no one, will do that for you. It’s a win, win, win for you. I wish every day was this good.
So those are the three most important factors to consider when buying term life insurance; how much, how long and who has the cheapest price.
There are a bunch of other factors to consider too. Let’s go through a couple of them.
Do your application online without a broker. It will save you time and money over the long run. When you answer the questions make sure you tell the truth. 95% of life insurance claims are paid out within 31 days of you dying. The 5% that don’t get paid out are mainly because people lied on their applications. So answer truthfully and all will be well.
If you’re buying term life insurance you may as well get your Will done at the same time. The awesome folks at dropdead give you a FREE Will so take advantage of that. That’s right, you read the FREE part correctly. How many companies give out FREE anything, dropdead is just terrific like that.