So I got an email from my University's Alumni Association the other day like I usually do. This time, instead of swiping right to delete immediately, the subject line jumped out at me:
Save money with NEW 10 year term life insurance
You see, alumni associations, professional associations and other clubs have referral deals with many insurance providers in Canada. These deals lead to simplified, easy to get life insurance for their members at "discounted rates". I've talked before about a certain Warehouse store and their insurance offer, but that was a 5 year term product. This is a price guarantee* for twice as long. (* I say guarantee, but at any point, the provider can increase the premium rate for the entire group)
I decided to take them up on their offer and get a no-obligation quote and enter myself into a draw they were holding (I'll keep you posted on if I win). Let's assume a random 39 year old male is looking for $500,000 of coverage. Here's the result:
$48 a month doesn't seem that bad. And besides, I can apply online, no need to have a needle stuck in me and my rates are (potentially) set for 10 years. How can I do better than that?
By talking to a qualified advisor who knows game. Here is a quote for that same random 39 year old male from THE SAME INSURANCE COMPANY:
$32 a month. $16 a month better. $192 a year less. And they don't require a needle for that age either. Plus:
- You own the contract
- Premiums are set for 10 years regardless of if your health changes after issue
- Policy can be converted to permanent insurance at any time
Sometimes, it pays to look a little deeper than the subject line to get to the truth about a certain deal. In this case, talking to an advisor can save you hundreds. I'm an advisor. Come talk to me. I know things.
Kenenth Coombs CFP CHS RRC
Ken has 12 years experience in the financial services industry, is a Registered Retirement Consultant and a Certified Financial Planner. Ken has written financial planning columns and has been a guest on financial radio and podcast programs.