If you willing to redo your paramedical and possibly your blood work the benefit could save you hundreds of dollars over the term of your life insurance policy.
Let me explain.
Not unlike mortgage interest where the choice is yours to lock in or stay variable when signing the initial mortgage paperwork; term insurance, created to protect your biggest asset during your debt and child rearing years, is dropping in price and control to re-do the policy is yours.
The reason for falling premiums is due to death rates decreasing. Term insurance is priced based on a time duration of the term taken and mortally rates at the time; term 10 is the most common although 5 year terms are least expensive.
If you are willing to re-visit your life insurance agent for a price quote after 5 years of your term insurance placement, you will find the price is likely to be cheaper than when initially purchased; sometimes up to a 25% savings going forward.
Term insurance is simple, underwritten at time of application and paid directly to your beneficiaries’ tax free. Bank mortgage insurance coverage has the beneficiary as the bank, your premiums are level although your mortgage is decreasing and your family does not receive the death benefit. Bank insurance uses blended smoker/non-smoker rates causing higher pricing for non-smokers. Most bank mortgage insurance is NOT underwritten at time of application meaning your mortgage payoff is decided at time of death.
Information is the right of everyone; pass it on so we make better choices and keep your money in our hands.
For additional information on Term Insurance and how you may benefit on a term insurance "refinance", please contact me.
For additional information on Term Insurance and how you may benefit on a term insurance "refinance", please contact me.
Sandy Allen
Sun Life Financial Insurance & Mutual Fund Agent– White Rock, BC
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