How Much Do Others Choose to Pay for Life Insurance in Alberta and in Canada
The chart, based on a life insurance calculator for Canada, shows a comparison of term, whole life, and universal life insurance rates that consumers pay for Life Insurance in Canada. Please consider that though these are self-reported data, we found out that many consumers in Alberta are underinsured. Life Insurance premiums will also strongly depend on a number of factors – these are average premiums.
Overall there are several important questions to answer before choosing Life Insurance:
- How much coverage (e.g. $100,000 or $$2,000,000) do I need and how long (e.g. for the next 25 years to insure my mortgage vs till the end of my life to ensure that my family is safe)?
- What types of life insurance exist (e.g. Term Life, Whole Life, Universal Life etc.)?
- What provider should I choose – e.g. Manulife, Sun Life, Great-West Life or any other?
When you are getting a life insurance quote with us, we not only calculate the best rate for you based on your needs but also give an opportunity to speak with an experienced adviser who can answer all your questions, address your concerns and explain all insurance details.
Several Numbers You Must Know when looking for Life Insurance in AB
In most cases, your financial obligations will dictate your need for life insurance – e.g. mortgages, lines of credit, need to ensure that your children and love ones have been take care of.
Here are a few numbers to help you when searching for life insurance in British Columbia:
A huge aspect of choosing life insurance is your mortgage that is often related to the value of your home.
|Average property price in Canada, May 2020||$494,476|
|Average property price in AB, May 2020||$371,888|
|Average property price in Calgary, May 2020||$405,800|
|Average property price in Edmonton, May 2020||$315,900|
|Average property price in Lethbridge, May 2020||$279,246|
|Average non-mortgage debt in Calgary, end of 2019||$29,789|
|Average non-mortgage debt in Canada, end of 2019||$23,800|
|Average non-mortgage debt in Alberta, end of 2019||$27,956|
|Average non-mortgage debt in Calgary, end of 2019||$28,810|
|Average non-mortgage debt in Edmonton, end of 2019||$28,350|
|Average financial needs to raise a child to the age of eighteen, 2019||$287, 534|
How Do Different Aspects Impact Your Life Insurance Rates in Alberta?
|1||Smoking||Increase of 200%|
|2||Drinking||Increase of 50%|
|3||Your Family History||Increase of 50 – 250%|
|4||Your Medical History||Excludes coverage for some deseases|
|5||Your Depression History||Increase of 50 – 200%|
|6||Your Physical Build||Decrease of 25% to Increase of 200%|
|7||Your Driving Record||Increase of 25% to 50%|
|8||Your Gender||Decrease of 25% for Women|
Life Insurance Regulation Body in Alberta
Similar to other provinces there is s regulation body in Alberta that regulates life insurance matters, The Life Insurance Council of Alberta. It is one of four Alberta Insurance Councils.
The Councils are formed under the Insurance Act and they derive their authority under a delegation from the Minister of Finance for the province. Together with General Insurance Council, the Life Insurance Council is responsible for licensing and discipline of insurance agents, brokers and adjusters in the Province of Alberta.
Examples of Term Life Insurance Rates in AB
- Life insurance quote in Calgary for a female, 35 years old, non-smoker, Term 20 life insurance with $250,000 coverage: starting at $17 / month
- Life insurance quote in Edmonton for a male, 35 years old, non-smoker, Term 15 life insurance with $350,000 coverage: starting at $24 / month
- Life insurance quote in Lethbridge for a male, 45 years old, non-smoker, Term 20 life insurance with $500,000 coverage: starting at $81 / month
- Life insurance quote in Fort McMurray for a female, 45 years old, non-smoker, Term 20 life insurance with $500,000 coverage: starting at $57 / month
Life Insurance in Alberta – What you Must Know
“When looking at the Life Insurance in Calgary, the first thing you gonna want to look at, is my broker licensed in Alberta.
Once you’ve determined that he or she is licensed in Alberta, you can go over how much life insurance I need and, in fact, do I need life insurance?
People with dependents generally need life insurance much more than people without dependents. Now, those people with dependents and even the ones without they gonna want look at what types of things need to be covered in the event they pass away.
A big thing is a property, if you a have property and a mortgage on the home you gonna want make sure that’s covered.
The average home in Canada is (worth) $480k, the average detached home in Calgary is (worth) $490,000 and you also wanna look at things like consumer debt…
You look at consumer debt in Calgary – it’s $28k which is significantly higher than the country as a whole. You factor those with other needs such as covering final expenses, replacing part of your income in the event that you pass away – that determines your life insurance needs.
Once you’ve got this need covered, you gonna want determine the right type of life insurance – if that is a permanent policy or a term policy.
A good broker can make sure that he or she helps you to find the right amount of coverage and the best type of plan.”
How Can You Save on Life Insurance in Alberta?
- Smoking impacts your health and insurance rates: Stop smoking well in advance (at least a year) before applying for a policy – otherwise, your premiums will double. Like cigars? Well, many life insurance companies consider smoking more than 1 cigar per month and you won’t be able to get non-smoker rates.
- Great medical record drives savings: Having a healthy medical history in the past (not equal to the good current health state in the moment of application) has an impact on your life insurance. If you’ve had serious issues, some potential disease cases can be excluded from your coverage.
- Rounding mathematics matters: If you decide to buy a life insurance policy, make sure that your age rounds down and not up, i.e. if you are going to be 30 years old on December 31, buy the policy in the first 6 months of the year where your age is still rounded down to 29 and not 30.
- Annual review: Review your policies and coverage every year, since new discounts could apply to your new life situation if it has changed. An example would be your growth of your kid (and as a consequence less funds that you need to keep as reserves) or complete payout of your mortgage.
- Annual vs. monthly payments: In comparison to monthly payments, annual payments save insurers administrative costs (e.g. sending bills) and therefore they may reward you with lower premiums.
- Diabetes is not easy to ensure but not impossible: Many companies will not cover you but some will and again you’d better rely on a broker who has experience in this field and can help to get insurance and optimize premiums.
- High blood pressure cases can mean different premiums with different insurers: Typically high-blood pressure leads to higher insurance premiums but various life insurance providers treat and price those cases differently. Often any blood pressure exceeding 140/90 can trigger higher premiums. Some insurance brokers know those cases better and will be able to navigate you to the company with better rates.
- Explore Return of Premiums conditions: Some policies allow getting back the part of the premiums if you have not made use of them – ask your broker to make the calculation for you. Slightly higher premiums upfront can make sense in case of later premiums returns.
- Interested in more saving tips for Life Insurance? Get an insurance quote below and connect with an experienced insurance professional to get more tips.
Insurance companies are different: In fact, it matters from what insurance company you get your life insurance quote and buy your policy in Alberta. Some insurers offer more complex life insurance products such as whole life insurance or universal life insurance, other – less complicated products such term life insurance only. Our independent life insurance reviews will inform you about RBC Life Insurance, TD Life Insurance, Great-West Life Insurance, AMA, Life Insurance, Sun Life Insurance and many other insurers.
Life insurance and COVID-19
There were four main changes due to COVID-19. Here are they at a glance:
- Losing group benefits: Due to job losses, many Canadians lost their company insurance benefits and are getting now individual insurance policies
- More of “No Medical Insurance” products: More Canadians are choosing no medical life insurance to avoid in-person medical tests
- Life insurance premiums can go up: Numerous insurance companies will likely change their pricing rules increasing prices to adjust to the new reality.
- Insurance challenges for seniors: It might become harder to get decent insurance rates for seniors who are mostly at risk during the pandemic.
- Higher limits for standard life insurance w/o exam: Even traditional life insurance policies with limits up to $2,000,000 are now available without a medical exam.