Posted: Feb 1
Life insurance is an essential financial tool for protecting your family’s future, especially in a city like Edmonton, where unique
lifestyle factors, financial considerations, and an active job market influence insurance needs. With the right planning, you can find
budget-friendly life insurance that aligns with your family’s goals without breaking the bank. In this guide, we’ll explore some of the best
options available for those seeking an affordable life insurance policy in Edmonton, and how to navigate the landscape to find the best
deals. Call a Vistaplan advisor today to learn more!
Why You Need a Life Insurance Policy
Life insurance is essential for covering a variety of financial obligations, from mortgage debt to funeral costs, and from income
replacement to funding your children’s education. Edmonton’s cost of living is slightly lower than other major Canadian cities, but debt
levels are relatively high, with the average resident carrying over $350,000 in liabilities. This high level of debt, combined with funeral
costs that can range from $5,000 to $12,000, makes a life insurance policy a necessary component of financial planning for many
Edmontonians.
Types of Life Insurance Policies
There are two main types of life insurance: term life and permanent life insurance, each catering to
different needs and budgets. Let’s break down these options and how they stack up for affordability.
1. Term Life Insurance
Term life insurance is often considered the most affordable option, especially for young families or individuals with specific short-term
financial goals like covering a mortgage or providing for children through their college years. This type of insurance provides coverage for
a fixed period, typically 10, 20, or 30 years. If the insured person passes away during the term, the beneficiaries receive a tax-free
payout.
For example, in Edmonton, a healthy 36-year-old non-smoking woman can obtain a 20-year term policy with $750,000 in coverage for as little
as $51 per month. Similarly, a 32-year-old non-smoking man may pay around $45 per month for the same coverage. These policies are an
excellent choice for those looking to secure affordable protection for their families during crucial years when expenses like mortgages and
childcare are high.
Advantages:
- Lower premiums compared to permanent insurance.
- Flexible terms based on your financial needs.
- Simple and straightforward, with no cash value accumulation.
Considerations:
- The policy will renew at the end of each term.
- Renewal after the term can result in significantly higher premiums as you age.
2. Permanent Life Insurance
Permanent life insurance, which includes whole life and universal life policies, provides coverage for the
entire lifetime of the insured and includes an investment or cash savings component. While this type of insurance offers more comprehensive
benefits, it is more expensive than term insurance.
For instance, a healthy 24-year-old non-smoking female in Edmonton could expect to pay anywhere from $84 to over $220 per month for a whole
life policy with $200,000 in coverage, depending on the specific policy structure. Universal life insurance policies offer a bit more
flexibility, allowing the policyholder to adjust premiums and the cash value component over time.
Advantages:
- Lifetime coverage with no need for renewal.
- Builds cash value over time, which can be borrowed against.
- Can be used for estate planning and wealth management.
Considerations:
- Higher premiums than term insurance.
- More complex with investment components, which may require professional guidance to maximize.
Budget-Friendly Life Insurance Options in Edmonton
For those specifically seeking affordable life insurance policies, there are several options that balance cost with adequate coverage.
1. Term 100 Life Insurance
Term 100 is a hybrid of term and permanent insurance, providing coverage up to age 100. This is a cost-effective option for those who want
lifetime protection but can’t afford whole life insurance. In Edmonton, a healthy 24-year-old non-smoker male could obtain $200,000 in
coverage for around $95 per month. While more expensive than shorter-term policies, Term 100 is cheaper than whole life and doesn’t come
with a savings component.
2. Simplified and Guaranteed Issue Life Insurance
If you have health concerns and worry about qualifying for standard life insurance policy, simplified and guaranteed issue policies are
viable options. These policies do not require a medical exam, making them accessible to a broader range of people. While they are generally
more expensive than fully underwritten term policies and offer lower coverage limits, they are crucial for individuals with pre-existing
medical conditions or those seeking a quick, no-fuss application process.
A typical simplified issue policy may cost slightly more than standard term insurance, but it ensures coverage for individuals who might
otherwise be declined.
Tips for Finding the Best Life Insurance Deals
-
Compare Quotes: The best way to ensure you’re getting an affordable deal is by comparing quotes from multiple providers.
Companies like PolicyAdvisor and Compulife allow Edmontonians to compare rates from over 20 different insurers, giving you a broad view of
the market. -
Apply Early: Life insurance premiums increase with age. The sooner you apply, the better your rates will be. This
is particularly true for term life policies, where applying young can lock in low premiums for decades. -
Choose the Right Coverage: Don’t over-insure. While it’s tempting to go for a large life insurance policy,
you should choose coverage that fits your family’s actual needs. Review your debts, financial goals, and future obligations to
determine how much coverage is necessary. -
Consider Bundling: Some insurance providers offer discounts if you bundle life insurance with other types of
coverage, such as home or auto insurance. It’s worth asking your insurance broker about these options to save even more. -
Work with a Broker: Insurance brokers have access to a wide range of products and can help you navigate the
complexities of life insurance policies. They can provide valuable advice on the best options for your budget and long-term goals.
Securing Affordable Life Insurance
Finding an affordable life insurance policy in Edmonton is possible, whether you’re looking for short-term coverage or a lifelong policy.
Term life insurance stands out as the most budget-friendly option, particularly for young families or individuals with temporary financial
needs. Meanwhile, permanent policies like universal life, whole life or Term 100 offer long-term solutions, although at higher costs. By
comparing quotes, working with a trusted broker, and applying early, you can find a policy that offers both peace of mind and financial
protection for your loved ones without exceeding your budget.
Taking the time to evaluate your needs and explore the various policy options available in Edmonton ensures that you’ll find a life
insurance policy that fits both your financial and personal goals. Whether you go for a low-cost term policy or a more comprehensive
permanent option, there’s a plan out there that can provide your family with the security they deserve. Call a Vistaplan advisor today to
find the right life insurance policy for your needs!
About the Author – David Motkoski
David is a well-respected insurance advisor with over 30 years of experience helping healthcare professionals, business owners, and their
families secure their financial futures. He takes the time to make certain his clients understand the life, disability, and health insurance
products they are purchasing, so they can make the right choices for their budgets, plans, and futures.
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