Procrastination Can Kill Your Chances of Buying Life Insurance

Life Insurance is here today, gone tomorrow

do-not-procrastinate-when-buying-life-insurance-300x193If you’re like most people, the idea of buying life insuranceseems like a chore – something that is easily put off until tomorrow. Well, for the procrastinator in all of us we know that tomorrow never comes. It’s a funny thing that we all put off important things for “another day”, especially when they seem uncomfortable or costly. Buying life insurance can be both – a discussion about what will happen to your family should you die prematurely and having to pay an ongoing monthly premium. There’s two good reasons to procrastinate when buying life insurance.

Unfortunately, this type of procrastination can lead to some very unfortunate outcomes. Let’s examine the two big ones.

Life Insurance gets more expensive as you age

Some people put off buying life insurance for years and years. I am presently going back and phoning some of the people who contacted Life Guard Insurance over 2 years ago requesting quotes and information. For those whom I never connected with or who never bought insurance, almost 50% never bought anything and are still “thinking about it”.

Every year you age life insurance gets more expensive. This is usually about a 4 – 5% increase of premium each year. When you’re young, and life insurance is relatively cheap, this doesn’t seem to make much difference. But, as you age these annual premium increases can far exceed your income growth and make life insurance unaffordable. Many people who wait too long to buy the life insurance they need often have to settle for a smaller amount of coverage because they just can’t afford the premium for the insurance they should have.

Let’s look at a 5 year delay in buying life insurance, and how big a difference it makes on premiums. For our example we will have two people, both male, both non-smokers, aged 30 and 60. The 30 year old needs $500,000 of coverage, and procrastinates in buying it for 5 years, while the 60 year old needs only $200,000 coverage and he too procrastinates for 5 years. They are both buying 20 year term policies.

30 Year Old – Premium today is $37.68 per month. At age 35 the same policy will cost $40.24. That is a percentage increase of only 6.8% over 5 years. Very low!

60 Year Old – Premium today is $209.88 per month. At age 65 the same policy will cost $314.28. That is a percentage increase of 49.7% over 5 years. The cost of waiting is Very High!

As you can see, the cost of procrastinating when buying your life insurance increases dramatically as you get older.

Life Insurance is bought with health, not dollars

The one thing most Canadians don’t realize is that life insurance can only be bought when you are health enough to qualify for coverage. If your health changes for the worse, like a diagnosis of cancer, there is not way you will qualify for life insurance coverage. It would be like trying to buy home owner’s insurance while you’re watching your house burn down. It’s just too late.

So many times I have been contacted here at Life Guard Insurance by a person who is desperately trying to find coverage after they received bad news from their doctor. And in every case like this the person has told me they always meant to buy life insurance, it’s just that they never got around to it.

There are two outcomes when you are diagnosed with a health condition:

  • 1. You will receive a rated policy, meaning you are no longer healthy enough for standard rates and must pay extra for your life insurance. This extra amount could be as low as 50% more and as high as 250% above standard rates.
  • 2. You could be postponed, meaning the diagnosis is too recent and the life insurance company wants to wait and see how treatment and/or recovery will look like in a year or two. The insurance company is not saying no, just not right now. They might still decline coverage in the future, but if things look good then they will likely offer a rated policy.
  • 3. You are declined for coverage, meaning you are now too high a risk for life insurance and the life insurance company will not take you. Most declines are permanent in nature, so the insurance company doesn’t want to ever see an application from you again.

This is why you should not procrastinate when buying life insurance. Firstly, the cost of life insurance automatically goes up every year you get older. Secondly, you might become uninsurable or be a rated risk and have to pay a lot more for coverage. Both scenarios are less favourable to buying life insurance NOW, while you are healthy (hopefully) and as young as you’re ever going to get.

If you would like to get a free, no obligation quote for life insurance, please contact us today. We would be happy to show you the different options for life insurance in Canada and find the most competitive premiums to meet your needs.

December 15, 2014

The Dangers of Procrastinating When Buying Life Insurance

Procrastination Can Kill Your Chances of Buying Life Insurance

Life Insurance is here today, gone tomorrow

do-not-procrastinate-when-buying-life-insurance-300x193If you’re like most people, the idea of buying life insuranceseems like a chore – something that is easily put off until tomorrow. Well, for the procrastinator in all of us we know that tomorrow never comes. It’s a funny thing that we all put off important things for “another day”, especially when they seem uncomfortable or costly. Buying life insurance can be both – a discussion about what will happen to your family should you die prematurely and having to pay an ongoing monthly premium. There’s two good reasons to procrastinate when buying life insurance.

Unfortunately, this type of procrastination can lead to some very unfortunate outcomes. Let’s examine the two big ones.

Life Insurance gets more expensive as you age

Some people put off buying life insurance for years and years. I am presently going back and phoning some of the people who contacted Life Guard Insurance over 2 years ago requesting quotes and information. For those whom I never connected with or who never bought insurance, almost 50% never bought anything and are still “thinking about it”.

Every year you age life insurance gets more expensive. This is usually about a 4 – 5% increase of premium each year. When you’re young, and life insurance is relatively cheap, this doesn’t seem to make much difference. But, as you age these annual premium increases can far exceed your income growth and make life insurance unaffordable. Many people who wait too long to buy the life insurance they need often have to settle for a smaller amount of coverage because they just can’t afford the premium for the insurance they should have.

Let’s look at a 5 year delay in buying life insurance, and how big a difference it makes on premiums. For our example we will have two people, both male, both non-smokers, aged 30 and 60. The 30 year old needs $500,000 of coverage, and procrastinates in buying it for 5 years, while the 60 year old needs only $200,000 coverage and he too procrastinates for 5 years. They are both buying 20 year term policies.

30 Year Old – Premium today is $37.68 per month. At age 35 the same policy will cost $40.24. That is a percentage increase of only 6.8% over 5 years. Very low!

60 Year Old – Premium today is $209.88 per month. At age 65 the same policy will cost $314.28. That is a percentage increase of 49.7% over 5 years. The cost of waiting is Very High!

As you can see, the cost of procrastinating when buying your life insurance increases dramatically as you get older.

Life Insurance is bought with health, not dollars

The one thing most Canadians don’t realize is that life insurance can only be bought when you are health enough to qualify for coverage. If your health changes for the worse, like a diagnosis of cancer, there is not way you will qualify for life insurance coverage. It would be like trying to buy home owner’s insurance while you’re watching your house burn down. It’s just too late.

So many times I have been contacted here at Life Guard Insurance by a person who is desperately trying to find coverage after they received bad news from their doctor. And in every case like this the person has told me they always meant to buy life insurance, it’s just that they never got around to it.

There are two outcomes when you are diagnosed with a health condition:

  • 1. You will receive a rated policy, meaning you are no longer healthy enough for standard rates and must pay extra for your life insurance. This extra amount could be as low as 50% more and as high as 250% above standard rates.
  • 2. You could be postponed, meaning the diagnosis is too recent and the life insurance company wants to wait and see how treatment and/or recovery will look like in a year or two. The insurance company is not saying no, just not right now. They might still decline coverage in the future, but if things look good then they will likely offer a rated policy.
  • 3. You are declined for coverage, meaning you are now too high a risk for life insurance and the life insurance company will not take you. Most declines are permanent in nature, so the insurance company doesn’t want to ever see an application from you again.

This is why you should not procrastinate when buying life insurance. Firstly, the cost of life insurance automatically goes up every year you get older. Secondly, you might become uninsurable or be a rated risk and have to pay a lot more for coverage. Both scenarios are less favourable …

December 13, 2014

Health Insurance to Protect Your Investments

Proper Health Insurance Plans Can Keep Your Investments on Track

Don’t risk your savings and assets for lack of proper health insurance plans

health-insurance-protect-your-assets-canadaHealth insurance in Canada is so much more than just a prescription drug and dental plan. Have you ever heard the saying, “Your health is your wealth.” Simpy put, we all need to remain healthy to be able to work and provide for our families. When your health goes, your retirement savings, equity in your house and emergency savings plan can quickly follow. With health risks being the #1 financial risk every Canadian faces (much higher risk than passing away prematurely) we need to make sure our investments are secure while we pay the high costs of recovering from an illness.

Critical Illness Insurance to Protect Your Assets

The first line of defence against health risks is to purchase acritical illness insurance policy. This type of insurance pays out a tax free, lump sum, living benefit to YOU, 30 days after diagnosis of a life altering illness or injury. The Big 4 critical illnesses (making up over 80% of all claims) are Cancer, Heart Attack, Stroke and Bypass Surgery. Most policies cover 24 major illnesses and injuries, including the Big 4, and have partial payouts for non-life threatening diagnoses too.

In the case of a critical illness, like cancer, you might have to take years off work to full recover. You might need expensive medications, assistance with daily living activities because you are too sick to cook, clean and take care of the kids. Your spouse might take a leave of absence from work to be at your side through the worst of times – meaning no income to the family and living off savings. This is where a critical illness insurance policy kicks in, providing you and your family with much need cash to take care of financial concerns while you are recovering and undergoing treatment.

Disability Insurance to Maintain Your Income

For those who do not have a group benefits plan because you are self-employed or working for a smaller company without benefits, you need to protect your cash flow. Almost 50% of Canadians will experience at least 1 period of long-term disability! You don’t want to become a statistic. It might not be cheap, but disability insurance is a must for all workers without coverage.

If you are disabled, and can’t go to work, your disability insurance policy will pay you a tax free,monthly income benefit. This will replace your lost income to pay the mortgage, utilities, put food on the table, etc. How long would you be able to keep up your lifestyle and provide for your family if income suddenly stopped? What if you were off work for 2 or 3 years in recovery from a major injury or illness? It happens everyday to Canadian workers, and unfortunately about half of the time they have no disability insurance.

Long Term Care Insurance to Secure Your Retirement

When going into your retirement years, you are probably planning on living on a fixed income. There is often only a certain amount of money available for monthly living expenses, and no more. What if you suddenly had to add an additional $3,000 to $5,000 per month on top of your monthly bills to provide long-term care as you become elderly and frail? This can mean your retirement nest egg might suddenly disappear in a few years, leaving you reliant on adult children to care for you.

What if you had an insurance policy that paid out a weekly or month benefit, tax free, to help with the high cost of long-term care? This is what Long Term Care Insurance does. When you really need help with things like feeding yourself, dressing, bathing, or you are suffering from dementia and can no longer be left alone, your Long Term Care Insurance policy start paying out tax free benefits to help pay the costs of this care. This protects your retirement nest-egg from being quickly depleted and gives you the financial resources to age with dignity.

If you’ve never looked into health insurance plans like these before, we can help. At Life Guard Insurance we are experts in providing individuals, families and small business owners with the health insurance plans they need in Canada. Contact us today for a free, no obligation quote and a complimentary needs analysis.…

December 11, 2014

Did You Wake Up Excited To Buy Life Insurance Today?

I’m Excited to Sell Insurance. Are You Excited to Buy It?

Life Insurance: Probably not the most exciting purchase you’ll ever make

ExcitedI don’t think I’ve ever met anyone who rolled out of bed saying, “This is a wonderful day – the day I buy Life Insurance!” I know that your insurance broker (counting myself among the group of life insurance brokers) is probably a lot more excited about selling you a policy than you are about buying one. And not just because of the commissions he/she will earn on the sale. Your broker understands how proper financial risk protection can benefit a family, how permanent life insurance can offer “investors” a rich and tax sheltered cash value, and how a person’s and family’s future can go on, no matter what life throws at them. We brokers have internal rewards and motivation to sell life insurance policies – not just commissions.

Does buying life insurance make you feel good?

When you purchase life insurance it should make you feel safe, secure and confident you have protected the one’s you love. That should make you feel good. Also, setting aside financial worries, like worrying about what would happen to your family if you died, is also a relief. Once your life insurance is in place you can have peace of mind and those worries are resolved.

Still, getting life insurance isn’t an exciting purchase. It’s not like shopping for a new sports car, or booking that exotic vacation you’ve always dreamed of. Those things are exciting purchases – and they can bring real joy to your life. Unfortunately, life insurance just feels like another bill you’re paying for each month. Something that could be avoided if you turned a blind eye to the possible risks to your life and the financial reality your family would face without your support or income. You can choose to be without life insurance. Sure! I’m not saying it’s a wise thing to do – but you can go without it.

When your family claims on your life insurance policy, that bill suddenly become the wisest investment you ever made!

Being financially responsible has its own rewards

While the process of buying life insurance is not the most fun, the rewards of having a policy that protects your family are great. You know that the tax free money paid from your life insurance policy will be a HUGE relief to your spouse and kids if anything were to happen to you. You’ve set up a plan that will look after their daily needs for years to come, when you are no longer there to provide for them. Making sure the mortgage is paid off, bills are paid, food is on the table, money is set aside for emergency expenses, that children can go to college or university, and your spouse won’t have to sell the house to make ends meet is why we buy life insurance. It’s a good feeling! It’s your way of saying, “I love you and I will protect you.” even beyond the grave.

Now, let’s be prepared. Buying life insurance is actually a slow and sometimes annoying process. Here are the steps to go through before you have a policy:

  • Meet with an insurance advisor/broker and discuss the “what ifs” around your death and mortality
  • Have a paramedical exam – with needles, urine specimens, height and weight measurements, etc.
  • Wait about 6 weeks for the underwriter to make a final decision
  • Meet your insurance advisor again to accept your life insurance policy

Not fast, and not what most people would call A Good Time, but necessary. At Life Guard Insurance our advisors help take the stress out of this process. We can discover exactly how much life insurance you should have, find the most competitive premiums in Canada for you, keep you informed all throughout the underwriting process, and finally be your trusted insurance advisor for years to come.

Contact us today for a free, no obligation quote and/or financial needs analysis to see how much life insurance you need. We would love to help you and become your trusted insurance advisor.…

December 10, 2014

About Life Guard Insurance

A Team of Life Insurance Brokers You Can Depend On

About

Professional, Knowledgeable and Customer Service Focused Life Insurance Brokers

The mission of Life Guard Insurance has always been to provide our online guests with Canada’s best internet resource for life and health insurance information. We believe that educating and empowering our clients helps them make better financial decisions and fosters team work with their personal life insurance broker.

Our goal is to provide you with the best information, articles and online tools to help you understand how life and health insurance will fit into your financial plans. Access our online tools, like the instant life insurance quote, life, critical illness and disability needs analysis tools and our library of video content to educate yourself about personal insurance planning. When you are ready, you can contact us to request personalized service for the life and health insurance policies you are interested in.

We Respect Your Privacy!

At Life Guard Insurance we never ask you for your name, phone number or email address to access any of our online content or tools. They are there to help you learn about personal and business insurance planning and feel comfortable about the financial planning decisions you will make. If you would like to connect with our Canada wide network of life and health insurance brokers you can contact us directly, only when you are ready to proceed. We will never make unwanted contact with our online visitors.

PPI Solutions and Life Guard Insurance are partnered to serve clients across Canada

PPI Solutions is Canada’s Number 1 MGA (Managing General Agency) providing administrative, technical and educational support to life insurance brokers across Canada. Life Guard Insurance has partnered with PPI Solutions to bring our online visitors the very best advice and customer service when contacting a local life insurance broker.

PPI Solutions has offices across Canada, supporting the sales activities of thousands of brokers. They are by far Canada’s largest national MGA, and offer their advisors the best in back-office support, underwriting expertise, client data management, and on-going education and training. The life insurance brokers you will be put in contact with, contracted with PPI Solutions, are the very best in Canada.

Finding the best life insurance brokers in your local area

The local office managers of PPI Solutions’ regional and city offices have excellent relationships with their life insurance brokers. Only the best local life and health insurance brokers are handpicked by their PPI Solutions management team to be a part of the Life Guard Insurance advisory network. You can rest assured that by contacting Life Guard Insurance for your life and health insurance needs, you will be connected to a professional and experienced life insurance broker near you. Your life insurance broker will have an excellent track record in maintaining strong client relationships and serving the needs of their clients over their lifetime.…