which ensures the company's ability to pay the benefits, regardless of the future considerations.

Term Life Is Different

However for term life insurance, this is not the case as usually the periods of coverage are for a fixed period of years, for example 10 years. If you take such a policy, you would then need to renew it at a higher premium. And you need to remember you may have to undergo a medical exam at that time as the company regards this as a new term life policy.

But the good news is that in Canada, you can buy a "Term 100 year" policy which takes you up to that age at a fixed premium. It's more expensive than a "Term life 10 year" or a "Term life 20 year" policy but except for older ages, it it still less expensive than whole life insurance.

The Cost Of A Term Life Or Whole Life Policy Is Determined By Three Basic Factors:

Mortality. The life company initially assumes a certain projected rate of mortality for the lives of those insured. This rate varies with age, product, sex, health and number of years from the issue.

Expenses. The company projects future operating expenses, such as policy acquisition costs, company operating expenses, and other costs of doing business.

Investment Returns. The company initially projects a rate of return on its investments, usually based on current economic conditions.

Smaller term life or whole life policies do not necessarily require the insured to take a medical exam; just supply some medical information.

Some Keys To Getting Low Term Life Rates

Non smokers pay half the cost of term life than smokers.

Sometimes losing weight can lower your premiums. If you are overweight, find out what weight will lower your premium.

Only about 11% of the public actually qualifies for "preferred" rates - most people pay standard rates.

If a health condition causes you to pay more for - insist on being told the exact reason. Discuss the reply with your doctor to find out if it is accurate.

Remember the only way to find a low life rate, is to find an independent life broker who does the "shopping" to get you the best possible rate for your whole or term life policy.

Article Source: Articles Beyond Better

Ivon T. Hughes of the Hughes Trustco Group is a licensed Broker. Author of The Life Handbook. Get a FREE Copy TODAY! Email: info@trustco.ca Web: hughestructco.com

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