Winnipeg, Manitoba has one of the lowest costs of living in the country. But despite this low cost, residents should still consider buying life insurance in Winnipeg. Planning ahead of time is a wise choice, and an insurance broker can help explain the different types of life insurance in Winnipeg.
What is life insurance?
Life insurance is essentially a contract between the insurer and the insured. Known as a life insurance policy, the insured pays a fee, aka premium. In the event the insured dies, the insurance company will pay out a tax-free, lump-sum amount to your beneficiaries to help pay for funeral expenses and cost of living. The insurance premium will depend on several factors including the type of life insurance selected, the amount of death benefit, the insured’s age/sex, smoker status and general health. Some insurance companies require that individuals undergo a medical exam and/or complete a health questionnaire.
Why is life insurance in Winnipeg important?
According to KPMG, Winnipeg, Manitoba was ranked one of the least expensive cities to do business in Western Canada in 2012. Winnipeg’s low cost of living means residents can expect to spent approximately $1,200 – $2,000 per month on rent, food, utilities and transportation. But despite the low cost of living in Winnipeg, life insurance is still strongly encouraged as there is no guarantee that the cost of living will always be low. In the event of death, without life insurance, your loved ones would be responsible for your debts. Life insurance would help to protect families from financial burden.
What is term life insurance?
For individuals living in Winnipeg, Manitoba that are healthy and have no real serious health issues, a term life insurance policy is good option. Term life insurance covers the insured for a predefined period of time (the term). For example, Term 10 means that you will be protected for the next 10 years.
How to save money on life insurance in Winnipeg
Insurance premiums are all dependent on the package selected. By making small life changes, insurance premiums go down. Here are some ways people can save on life insurance in Winnipeg:
- Being healthy can save you money: Having a healthy medical history in the past (not equal to the good current health state in the moment of application) has impact on your life insurance. If you’ve had serious issues, some potential disease cases can be excluded from your coverage.
- Reduce alcohol consumption, reduce insurance rates: If you do not have any drinking issues, you can benefit from lower insurance rates – otherwise your premiums can increase by up to 50%. An intensive drinker would be considered somebody who drinks 3-4 beers a day. Remember, life insurance rates in Winnipeg, similarly to other locations in Canada, depend on your driving history. DUI cases are costly.
- Explore Return of Premiums conditions: Some policies allow getting back some of the premiums if you have not made use of them – ask your broker to make the calculation for you. Slightly higher premiums upfront can make sense in case of later premiums returns.
- Say no to a guaranteed issue life policy: People with good health do not need a guaranteed issue life insurance policy (these are policies that do not require a medical exam but they cost more) – do a health check/exam and enjoy lower life insurance premiums when getting life insurance quotes in Winnipeg.
- Alumni: Graduates from certain Canadian universities might be eligible for a discount from certain insurance providers.
- Bundles can be cheaper: Getting several insurance products from one provider e.g. life insurance together with disability insurance and critical illness can be often rewarded by lower premiums. Or you can sometimes bundle life insurance with non-life insurance (e.g. home or auto).
- Your driving record can affect premiums: If your driving record improved while you have a life insurance policy, you can review your premiums with your insurer and get them reduced (typical time for smaller offenses to come off your driving record is three years).
- Insurance type matters: Term insurance products have lower initial premiums than whole life or universal life. So, if you are looking to maximize your initial coverage, choose term.
- Rounding age matters: If you decide to buy a life insurance policy, make sure that your age rounds down and not up, i.e. if you are going to be 30 years old on December 31, buy the policy in the first six months of the year where your age is still rounded down to 29 and not 30.
- Being young saves money: Apply for the policy when you are young and your premiums will be lower.
- Smoking affects both health and insurance rates: Stop smoking well in advance (at least a year) before applying for a policy – otherwise your premiums will double. Like cigars? Well, many life insurance companies consider smoking more than one cigar per month, so you won’t be able to get non-smoker rates.
Most people don’t like thinking about death or making plans for after they die. But life insurance can be a peace-of-mind decision that will ensure your loved ones aren’t left with a financial burden that can cause stress and anxiety. Contact NoMedicalLifeInsurance today to speak to a licensed broker for a free quote on life insurance in Winnipeg.