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Life is very unpredictable and misfortune can strike at any time. Statistics indicate that fatal heart attacks occur most frequently during the holiday season, in the months of December and January. There are many possible factors, including increased family pressures, too many fat-filled holiday meals, stressful trips to visit friends and family, the tendency to drink more alcohol or the lack of time to exercise properly.
The December 2006 Death report published by Statistics Canada indicated that more than 18.5 percent of all deaths in the country occurred in December or January. This is an unusually high percentage for a two-month period. Regardless of the reasons, the sobering statistics remind us of the importance of purchasing life insurance as soon as possible. Given that death is inevitable, you should not procrastinate when purchasing life insurance. We’re going to provide you with some recommendations to help you decide what type of policy to buy: Term life insurance: If you want to obtain the highest amount of coverage for the least amount of money, term life insurance is your best option. The downside is that there is no saving or investment component to such a policy. However, you can purchase a term life insurance policy for less and then invest the difference. Healthy Individuals Should Avoid Guaranteed Issue Policies: Many people are lured into purchasing a guaranteed issue policy because no medical examination is required. The problem is that you will pay higher premiums for such a policy because it is available to all individuals—even people who are not healthy. If you don’t have any medical conditions, you should purchase a life insurance policy that requires a medical examination because you will pay lower rates. On the other hand, if you do have medical problems, you should consider purchasing a guaranteed issue policy. Despite the higher premiums, it is much better to have life insurance coverage. Don’t Buy More Than You Need: This may seem like obvious advice, but many individuals end up purchasing unnecessary insurance coverage. You want to ensure you have sufficient coverage to protect yourself and your loved ones, but you don’t want to end up paying higher premiums than necessary. Make sure you know exactly what coverage you require before purchasing any type of life insurance policy. For example, you should review your particular reasons for purchasing insurance. Ask yourself if your goal is to cover funeral expenses, offset income loss, pay outstanding debts such as a mortgage or car loan, contribute to your children’s future or a combination. This will help you purchase the amount of life insurance coverage you actually need. Some insurance industry professionals recommend purchasing coverage that equals five to ten times your pre-tax annual income. Consider A Joint Policy: Instead of purchasing two individual policies to cover yourself and your partner or spouse, you can buy a joint policy. You will generally pay approximately 15 percent less for one joint life insurance policy than two single life insurance policies that provide the same amount of coverage. Consider the Exceptions: In most cases, the more of a product you buy, the more it will cost you. However, there are some instances where you will actually pay less to purchase more insurance coverage. Certain insurance companies may encourage you to purchase a larger policy by reducing the cost. For example, you may discover that you will pay less to receive $350,000 coverage than if you had chosen $300,000. Compare Policies & Rates: Never purchase a life insurance policy without comparing the policies and rates from several other companies. The cost can vary greatly, depending on the insurance provider. An easy way to compare rates is to conduct an online search so you can find the best deal. Remember to investigate a prospective insurer’s customer service policies, coverage options, financial background and reputation, not just their insurance rates. |
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