Differences Between Companies & Products

The following is a brief list of some of the other factors that you should consider when comparing products and companies:

Company Financial Strength - Not all life insurance companies are the same. Some are very large financially, some are small. Some companies are in better financial condition than others. The longer the level premium and coverage period, the more important it is to consider how healthy and strong the life insurance company is. Make sure that you ask your broker for information about the financial ratings for the companies that you are considering.

Premium Guarantees - Are the premiums for the policy fully guaranteed? Not all companies fully guarantee their premiums. For the purpose of the quotes provided by this site, only policies which guarantee their initial level premiums (and coverage) are compared.

Renewal Period - Most level term policies have the ability to renew the policy beyond the initial level premium period. Two products may offer identical premiums for the initial level period, and yet there may be an enormous difference in renewal costs beyond the level period. Access to that renewal information can provide a year by year future premium printout that lets you compare more fully.

Conversion Period - Many term policies offer the ability to exchange the term policy for a whole life policy without having to again medically qualify (this is called "Conversion"). Should your health change, and should you not be able to buy a new policy elsewhere, you may find the conversion option important.  Not all policies allow conversion and some require different time periods for conversion to take place, and finally not all policies give you access to the same types of whole life.

Comparing Different Level Periods - Should you be buying a 10 year term product, a 20 year term, 30 year term or a policy which covers you for life, such as Term to 100? How long do you really need the insurance? If you buy a 10 year term, how will future cost increases after the 10th year compare to a longer level term plan such as 20 year term? If you only need insurance for 10 years, you could be wasting your money buying a 20 year term product. If you are unsure, you should discuss why you are buying the insurance with an insurance professional  and let them give you the benefit of their knowledge and experience. They may be able to identify other factors you have not yet considered. 

Monthly Payment Options - Many consumers pay their term insurance premiums on a monthly basis. The least expensive product based upon the annual premium may not have the lowest monthly, quarterly or semi-annual premium. Many life insurance companies charge extra to pay more frequently than annually, and some charge more than others.  However, monthly premiums may fit in better with your budget.

Health Risk Conditions - Each life insurance company establishes its own health and lifestyle requirements to determine what premiums you may qualify for. Slightly high blood pressure may disqualify you for one company's preferred health premium, but might be acceptable to obtain another company's preferred health premium. An insurance professional will be able to give you more guidance.

Smoking Considerations - Not all life companies define smoking the same way. If you have never smoked or used tobacco products in any way, then a non-smoking comparison will include products that you can qualify for based upon non-smoking. If you were a smoker and later quit, then how long ago that you quit may limit your choices. If you do smoke, some companies may offer products with better premiums depending on how little you smoke, or whether you smoke cigars or pipe rather than cigarettes. You will need to discuss all of this with an insurance professional.

There are  also other considerations that you will want to discuss with your insurance professional.  This information should be a good starting point in educating you to your needs.

Be aware that Price is not the only consideration.  Comparing the advice of more than one broker is your best strategy to sort out the impact of those other considerations on your final decision.

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Note:  These articles are for information purposes only.  insQuote.ca accepts no liability for the content or views of the authors.