by Chris Funnell
 

Everyone loves a discount! From Cyber Monday, to ‘buy-one-get-one-free’, to Air Miles, Canadians love being smart and savvy shoppers. We delight in telling others about the low prices we are able to find. And paying a low price for something makes us feel good.
 

So what kind of life insurance discounts can you find when shopping for insurance? Here are my top 6 that you don’t want to miss:
 

#1 – Shop Rates from all Canadian Companies

While not strictly a discount, I’m putting this up front as it probably has the greatest savings potential of all 6 ideas.
 

It may come as a surprise to some otherwise in-the-know consumers, but the rate spread or ‘discount’ for identical life insurance policies from most expensive company to least expensive company can be quite shocking. Here’s an example:
 

• the most expensive rate for a female, standard non-smoker, age 50, $500,000, 10 Year Term, is $107.82 per month (with Primerica)
 

• the least expensive rate for the exact same coverage from another company is $52.47 per month (with RBC Life)
 

For the exact same 10 Year Term coverage, this represents a difference or life insurance discount of 51.3%. And over 10 years the difference is $6642.00.
 

You wouldn’t knowingly overpay by 51.3% for a car or a magazine or a computer. Why overpay for life insurance? It pays to shop around.
 

#2 – Get a Preferred Health Life Insurance Discount (if at all possible)

This is #2 on the list of best life insurance discount ideas as the spread between ‘preferred’ and ‘regular’ health rates can be sizable (sometimes as much as 25%).
 

In a nutshell, people in better health can qualify for a lower rate for their life insurance. Factors such as exercise, healthy eating, build, and family history all contribute to qualifying for the lowest rate.
 

Preferred life insurance discount criteria

Many clients ask “what do I need to do to get a preferred rate?”. Unfortunately, researching all the competing products and preferred health criteria from each company in the Canadian insurance marketplace is no mean feat. Each company has their own unique preferred underwriting criteria.
 

For example, with one company the upper weight limit for a preferred rate is 5’10, 200 lbs. With another, the limit is 5’10, 212 lbs.
 

Match unique history to the right Company

This is where I come in. I match a clients’ unique health, lifestyle, and family history to the right Insurance Company so they avoid uncertainty and find the best plan at a preferred (or preferred plus) rate if at all possible.
 

You see, buying life insurance is not just filling out an application form. For example, many people:
 

• Don’t consider the importance of matching their unique health, sports, travel, and immediate family history with the right Insurance Company
 

• Don’t know how to complete an application so it works for them, and not against them
 

• Don’t know how to prepare for an insurance medical exam to get the best results
 

So with TermCanada you’re not just getting a quote. You get expert advice learned after thousands of cases, and a professional customized plan with just the right kind and amount of coverage.
 

Personalized life insurance discount recommendations at no additional cost

You pay no more for this one-on-one service, so take advantage of it and get the best plan you can at a preferred or preferred plus rate if at all possible.
 

For more information on the preferred underwriting criteria at each Canadian Life Insurance Company, and which company is the best fit for you, feel free to call me at toll-free 1-866-824-2114.
 

#3 – Joint First-to-die Discount

Joint First-to-die (or JFTD) policies are a popular choice, and are around 10% less expensive than individual policies. They are printed on one contract (instead of two), and cover two life insured’s such as husband and wife.
 

In the event that one person passes away, a death benefit is paid (just like an individual policy).
 

Double death benefit

And with many companies if something happens to both insured individuals at the same time such as a car accident (or if both insured’s pass away within 60-90 days of each other), then the death benefit is paid twice (just like individual policies).
 

Survivorship option

Also, many companies offer a survivorship option that allows a second insured person to purchase stand-alone coverage without a medical after the death of the first insured person.
 

Given the double death benefit and survivorship options, many company’s JFTD plans offer the same protection as two individual policies, but at a meaningful life insurance discount. For more information about JFTD options, give us a call at toll-free 1-866-824-2114. We’re here to help.
 

#4 – Husband and Wife (or 2 Policy) Life Insurance Discount

Most companies offer a ‘Multilife’ discount of up to $100 per year when 2 policies are purchased at the same time. With the multilife life insurance discount, a small second policy on a spouse or partner can be very affordable.
 

For example, a $250,000 10-Year term policy for a stay-at-home Mother, non-smoker, age 30, could cost as little as $7.88 per month after the multilife discount. For many value conscious Canadians, protection at this price is just too cheap to pass-up!
 

#5 – Quit Smoking Life Insurance Discount

Smokers pay approximately double the rate of non-smokers. But many otherwise savvy shoppers don’t realize or forget that when they have been a non-smoker for 12-consecutive months, they can request a reduction to the non-smoker rate (about a 50% discount).
 

What’s more, even if a policyholder quits for 12 months, locks in a non-smoker rate, and then in a moment of weakness has a cigarette again, their non-smoker policy status is still continued.
 

Lock-in non-smoker life insurance discount right away

I advise clients who smoke to immediately contact me when they have been smoke-free for 12 consecutive months, so we can lock-in their non-smoker policy discount right away.
 

#6 – Backdate to Save Age Life Insurance Discount

Many consumers are unaware that nearly all life insurance companies calculate the age and premium for a life policy using a ‘nearest age’ instead of actual age.
 

Fortunately, life companies allow you backdate your policy to lock in a lower age and premium. It’s not unusual to backdate up to several months. You’ll need to pay premiums starting from the backdated start date, but backdating will lower your premiums by approximately 10% each year for the entire duration of the policy.
 

You’ll typically break-even within two to three years, and you’ll enjoy discounted rates thereafter.