Wondering how much life insurance costs for a 40-year old? If you are in your 40s and contemplating life insurance, or looking to update your existing policies, there is no time like the present. As we have pointed out countless times, there is no better or less expensive time to buy life insurance than today. 

Like most Canadians your age, changes in lifestyle have you contemplating protection – and perhaps not the same protection you were contemplating in your twenties.

The protection we specialize in is life insurance, so let’s get back on track. Read on to find out what term life insurance costs for someone in their 40s, and why you should contemplate getting it or making a change.

Why should I get life insurance in my 40s?

There are several reasons to get life insurance in your forties. You are still relatively young in middle age and can secure a good rate for life insurance. Your still in the period before the risk of health afflictions affecting you or your relatives raises your premiums. These are just a couple of factors that affect pricing.

You may have coverage through a group plan at your work, but at this age career changes and promotions are more and more likely – you could find yourself with a gap in coverage or no coverage at all depending on that next role. Sound likely? Find out why group plans can be lacking in life insurance coverage.

Lastly, you may already have life insurance you purchased when you were younger, but the plan, benefits, and options may no longer be conducive to your current lifestyle. As you take the escalator up in your career and glide towards your peak earning potential, your growing nest egg will need more protection. Be it marriage, children, mortgages, or pets, your financial and protection needs can change drastically in 5 to 10 years. Your forties may, therefore, be a good time to revisit your existing coverage.

Do I need life insurance in my 40s?

There are some clear signs of whether you need life insurance in your forties:

• You and your partner plan on spending the rest of your life together
• You have children of any age
• You  have a mortgage, or plan on buying or upgrading your home soon
• You have other forms of debt such as credit card debt or a line of credit
• You are the main earner for your family, with dependents like your children, partner, or parents
• You are continuing to accumulate assets that will someday be transferred to your beneficiaries

Whether for full coverage or to augment your current insurance plans – term life insurance is a simple and flexible life insurance product that could suit any of these needs.

Our life insurance needs calculator can shed more light on your specific insurance requirements.

How much life insurance does a 40-year old need?

Before finding out how much life insurance costs at 40 years old and beyond, you need to know how much life insurance you should buy. Obviously, the amount of life insurance you need at 40 years depends entirely on your own personal situation – as we alluded to above.

It’s not inconceivable that a Canadian in their forties, with a mortgage, children, and a partner who earns an income would need at least $500,000 in coverage. That amount would cover their house payments and child-care expenses, cost of living, and children’s education costs in the next 20 years. However, this isn’t one-size-fits-all. To check your coverage needs, try out our easy-to-use life insurance calculator.

All that said, let’s take a look at what 20 year term life insurance costs for a 40-year old.

How much life insurance costs for a 40-year, on average

As we’ve explained before, insurance premiums depend on various factors such as your age, gender, smoking status, lifestyle, and overall health. Everything equal – we’ve crunched the numbers from 16 different Canadian insurance companies to give you the average cost of life insurance on a 20-year term, divided by gender and smoking status.

For a male non-smoker, $500,000 worth of coverage starts at under $50 at age forty and rises modestly from there. Smoking more than doubles (and almost triples) your life insurance rates in your early forties, and keeps that trend going by age 49.

Life Insurance Premiums – Male, 20-Year Term

*Representative values, based on regular health

The story is similar for women, initial rates are lower than men’s at this age, and smoking continues to have a meaningful impact on premiums.

Life Insurance Premiums – Female, 20-Year Term

*Representative values, based on regular health

Now, these are estimated prices based on representative data and will still vary depending on factors like one’s health and medical exam results, smoking status, location, and more. You may also feel you need a higher death benefit or a longer year term depending on your financial situation, life insurance coverage needs, and all the other life stuff that accompanies your forties.

Only you know how much coverage you need, but this gives an over-arching view of what an average 40-year old might pay for such coverage.

How do I buy life insurance in my 40s?

You now have an idea of what term life insurance might cost during mid-life – but everyone’s situation is different. If you have 5 minutes, you can get customized term life insurance quotes in minutes through  PolicyAdvisor’s online tool.

Still not quite sure how much coverage you need? We’re always here to chat.

Life insurance is hardly a priority for most 20-year-olds. And that’s understandable. Most people in their twenties are still figuring out what their life will look like and many do not yet have dependents or significant financial responsibilities.

But that doesn’t mean that they shouldn’t consider signing up for a life insurance policy or that they have no need for life insurance at this time in their lives. In fact, there are benefits to buying life insurance earlier in life. Let’s take a closer look.

Why should I get life insurance in my twenties?

The primary reason someone in their twenties should consider life insurance is the same as for all other age groups: to protect their insurable interests, such as dependents.

A 20-something who has children or a spouse, or who has a sizeable debt, like a mortgage, can benefit greatly from life insurance, which can support their loved ones financially in case of their death.

But there are also reasons someone should buy life insurance even without any insurable interests. For one, if you are a healthy person in your twenties, your insurance premiums may be at their lowest possible price. This means that you can lock in a lower premium rate for both term and whole life insurance policies. If, for instance, you know that you will have insurable interests in the near future, it may be worthwhile to benefit from locking in lower premiums today and securing a multi-year term life policy or whole life coverage.

That being said, not every person will be ready to purchase life insurance in their twenties. Students (as well as those entering the job market for the first time) may not have the budget for an added monthly or yearly expense of an insurance premium. Additionally, the death benefit from a life insurance policy may not yet be vital at this point in their financial life, especially if they are without dependents or major debt.

How much life insurance does a 20-year-old need?

The amount of life insurance a person in their twenties needs varies greatly, depending on their financial situation, family, homeownership, and other factors. As a general rule, your life insurance coverage should at least be enough to pay off your debt (including any credit cards, car loans, or mortgages, etc.) so that your family is not held liable to settle the debt should anything happen to you.

Most policyholders also take out a life insurance policy as a potential income replacement, which will provide for their dependents in their absence. While this may not apply to every twenty-something, it is a consideration for those who start families earlier in life.

Other factors that should be taken into account to determine how much life insurance coverage you need are funeral expenses and the cost of education for your children or dependents. Someone in their twenties may not need coverage for all of these factors, so policy amounts will vary widely. However, a 20-year-old interested in buying life insurance as part of a long-term plan will have to think about what their future could look like and when they will need life insurance.

Take, for example, a recently married 24-year-old who has just secured a well-paid job and is planning to buy their first home before starting a family. They do not necessarily have to wait until they purchased a house or their child is born to buy a life insurance policy: they can forecast the coverage they will need with a mortgage and children and get their policy locked in while they are young and qualify for lower premiums.

Head on over to our life insurance calculator to find out how much coverage you might need.

What is the average cost of life insurance for someone in their 20s?

Once you’ve determined how much coverage is needed, next up is the question of how much you want to pay or can pay for your life insurance policy. Life insurance premiums are typically paid every month – like phone bills or mortgage payments – so you should ensure the payment would fit into your monthly budget without too much trouble. That said, many insurance companies offer a policy discount if you opt to pay for your coverage annually.

Life insurance costs also vary widely based on factors like age, health, gender, and lifestyle. The good news is that if you’re in your twenties (especially your early twenties), age won’t be a factor in driving up premium costs.

Other factors, like whether or not you smoke, have a pre-existing health condition or partake in any extreme sports, can have an influence on the cost of life insurance.

Lastly, the type of life insurance you choose will also affect the price, with whole life insurance typically having higher premiums than term life insurance.

Take a look at the chart below to understand what the average premiums are for a term life insurance policy in your twenties.

Life Insurance Premiums – Male, 20-Year Term Life Insurance

*Representative values, based on regular health

Life Insurance Premiums – Female, 20-Year Term Life Insurance

*Representative values, based on regular health

How do I buy life insurance in my twenties?

If you’re looking to secure a term or permanent life insurance policy in your twenties, look no further. The insurance experts at PolicyAdvisor are available to help you find the right policy for your needs and budget; bringing you instant, customized life insurance quotes from Canada’s top insurance providers, as well as any additional support you need.

The old saying goes: When it rains, it pours.

When you are diagnosed with a sudden, critical illness, your first concern should be your health and getting better, of course… but what about money? If you can’t work, how will you pay your bills?

A heart attack, stroke, or cancer can leave you in a bad way in terms of your bodily health, but they can also take a huge hit on your financial health as well. Between taking time off work and losing income, travel costs to get special medical treatments, and the possibility of expensive home care, you could bleed your savings dry.

Where critical illness insurance comes in handy

Critical Illness Insurance protects you against financial loss that may arise from being diagnosed with a serious illness. Where disability insurance replaces your income on a monthly basis, critical illness insurance provides you with a single, tax-free, lump-sum payment at the time of filing a claim.

Unlike traditional medical insurance, this coverage allows you to spend the money on any medical or non-medical items you may need or want. This lump sum could translate to plane tickets to a special treatment facility, your mortgage payment, specialized equipment not covered by universal or extended health care, a final dream vacation, or maybe even income replacement for your spouse whose workplace won’t provide an extended leave of absence.

Critical illness insurance steps in to cover those extra costs, so you can spend time recovering and resting—not stressing about money.

Why critical illness insurance is important

Critical illnesses are incredibly common. In fact, according to the Canadian Cancer Society, “Nearly 1 in 2 Canadians (45% of men and 43% of women) is expected to develop cancer during their lifetime.”

The Heart and Stroke Foundation reports that “Nine in ten Canadians have at least one risk factor for heart disease and stroke.” Some lifestyle risk factors include smoking, physical inactivity, stress, and unhealthy weight. Other, medical, risk factors include high blood pressure and diabetes.

According to our friends at CanadaLife, “nearly 1 in 3 Canadians will experience a life-altering illness.”

We’re not telling you this to freak you out—but you should be aware that critical illness may have an impact on your physical and financial health.

Often, if you have disability insurance or non-medical coverage, it may have a waiting period of 1-3 months before kicking in. Disability Insurance may only cover up to a certain percentage of your income which can fluctuate over time.

Critical Illness insurance can be your lifeline during these difficult times while the paperwork for your other insurance is being processed. With critical illness insurance, you know how much you’ll get paid out and the process is a lot faster. You can file critical illness insurance right away, with a diagnosis report from your doctor.

Here are a few situations where critical illness insurance can play a crucial role in saving your financial life:

• Your spouse needs to take time off work and does not have allowances for paid extended leaves of absences; the critical illness insurance can be used to replace all or part of their income (depending on how much coverage you purchase)
• You are self-employed and do not qualify for disability insurance, critical illness insurance can be used to replace your income.
• Your medical expenses are not covered by your extended medical or universal health care. This might include adapting your home for any new physical disability you may have or physio appointments.

Critical Illness insurance is especially important if you do not have any other type of medical or disability insurance in place. It covers specific sudden critical illnesses that can include:

Not all policies are created with the same definitions of illnesses and coverage. To make sure you’re getting the best coverage for you, speak to one of our advisors today!

When should I buy critical illness insurance?

Like life insurance, there are advantages to getting critical illness insurance earlier in life.

Critical illness insurance will get more expensive as you age as you are at a higher risk of sudden illness such as heart attack, stroke, or cancer as you get older. The younger and healthier the lifestyle you have, the cheaper this coverage can be.

If you don’t have it already, NOW is the cheapest time and the right time for you to purchase.

Often, critical illness insurance comes in terms, similar to term life insurance, and can cover you up to the age of 75. Some providers may also provide a return of premium feature to your policy: if you don’t make a claim for a critical illness during the policy term, and want to cancel your policy, the insurance company may pay some of your insurance premiums back to you. Additionally, when you purchase a policy, you lock in your rate for the rest of your term, no matter your age or lifestyle changes.

To determine how much insurance you may need, take a look at your current expenses—your mortgage payments, car payments, potential out-of-pocket medical expenses, travel costs, etc. If you can afford to cover that in the short term, then critical illness insurance may not be worth it for you. However, most Canadians have not saved enough to cover these costs without steady employment—and most critical illnesses will force you to stop work.

Read More: Find out how much critical illness insurance you need using our calculator. 

It is true that when you’re younger you are less likely to be diagnosed with a critical illness, and you may have less financial responsibility than later in life as you earn more in your career and take on more financial risk.

But ask yourself:

• Even if you have disability insurance or other insurance to replace your income, can you wait that 1-3 months before that insurance kicks in?
• Have you saved enough to pay for any specialized or out-of-country treatment?
• Can you pay to retrofit your home if your needs change?
• If you got diagnosed with a terminal illness and wanted to use your time to take a trip or spend as much time with family as possible, could you afford it?

If you said no, or are unsure, then critical illness insurance may be great protection for you, so you can stop worrying about your bank account balance and focus on your health.

Read More: Do you have gaps in your insurance coverage? Do our online check-up! 

PolicyAdvisor works with over 20 of Canada’s top insurance providers to make sure you get coverage that is best for YOU. If you have questions about critical illness insurance or critical illness riders and want to see if it’s worth it for you, chat with one of your expert advisors.

When completing a permanent life insurance policy application, there are several payment structures available. While many opt for monthly or yearly premium payments for the duration of their policy, it is also possible to choose quarterly, annual, or limited payment options. So, which one is the best deal and will give you the most bang for your buck? We’ll explore these options in further detail, with a special focus on limited pay life insurance options.

How much does life insurance cost?

The cost of life insurance varies from person to person. Policy type and benefit amount play a big role in determining the cost of life insurance premiums, as do the age, health, smoking status, and occupation of the insured. For instance, a term life insurance policy has lower premiums than a whole life insurance policy; a 30-year-old non-smoker will have significantly lower premiums than a 30-year smoker, and a person with a history of medical conditions may have higher premiums than someone deemed healthy.

All that to say, the cost of life insurance is highly subjective to your individual circumstance and how the insurance company underwrites those circumstances. To navigate this topic in more depth head to our posts on the cost of life insurance and the cost of whole life insurance. You can also use our life insurance calculator to see how much you can expect to pay for the policy of your choice.

What are my payment options for term life insurance?

When purchasing a life insurance policy, there are a few payment structures to choose from. Term life insurance is straightforward: you either pay premiums every month or some insurance companies provide the option to pay premiums annually and offer a discount if you choose to do so.

What are my payment options for whole life insurance?

Permanent life insurance, including whole life insurance policies and universal life insurance policies, have several more options for payment because of their lifelong coverage period.

Read more about the difference between whole life insurance vs. universal life insurance. 

Standard

With a standard permanent life insurance policy, the policy owner is expected to make regular premium payments over the course of their lifetime. These payments keep the policy active and ensure continued coverage as well as a death benefit paid to the beneficiary. The standard payment structure for permanent life insurance has lower individual premiums payments than other options. Most policyholders choose to pay their premiums on a monthly or annual basis using this standard payment structure, but there is another option called limited pay.

Humania Critical Illness Insurance rating and review

If you’re looking for a policy that offers the most comprehensive coverage that also includes children, Humania is the company to beat. Humania’s Children360 critical illness covers 37 conditions, including several that are specific to children. Humania also offers a compassionate allowance for grieving parents if that unfortunate situation does occur.

Pros and cons

Pros

• Comprehensive conditions covered (25 full payout illnesses)
• Multiple coverage terms available
• Child product (Children360) with 37 covered conditions
• Parental compassionate allowance
• Return of premium options
• Digital e-policy

Cons

• Limited partial payment benefit (only 3 covered conditions)
• No online access

Since the start of the COVID-19 pandemic, over 1.5 million Canadians have been diagnosed with the rapidly spreading virus and tens of thousands of people have died from it. The scale of the virus—in Canada and the world—has had enormous repercussions on healthcare systems, economies, and societies in general. In addition to this, the pandemic has raised new and important questions around covid for life insurance providers and people with life insurance and critical illness insurance coverage.

Though COVID-19 is no longer considered a global health emergency, the pandemic is still ongoing. So, we want to shed some light on how the virus factors into existing and new critical illness insurance policies. Looking at whether you can get COVID-19 insurance coverage, whether a previous diagnosis will exclude you from critical illness insurance policies, and more.

What is COVID-19?

Though the terms coronavirus and COVID-19 are often used interchangeably, there is an important distinction. COVID-19 is the disease caused by SARS-Cov-2, which is a strain of coronavirus. Named because of its emergence in 2019, COVID-19 is a respiratory illness that is highly infectious. While many COVID-19 infections result in mild to moderate respiratory symptoms, the disease can also cause serious and even fatal symptoms, such as respiratory failure, kidney failure, organ damage, and more. 

COVID-19 has been shown to present a higher health risk to people with underlying health conditions, such as respiratory diseases, diabetes, cancer, and other immune weakening illnesses. There is also evidence that the virus can cause long-term side-effects (this is known as long COVID), such as fatigue, joint pain, and shortness of breath. While there is still much unknown about the long-term effects of COVID-19, the persisting symptoms of the virus are thought to increase the risk of long-term health problems for recovered COVID-19 patients.

What is critical illness insurance?

Critical illness insurance is a type of coverage offered by life insurance companies (typically as an add-on to a life insurance policy as a critical illness rider, but can also be purchased as a stand-alone policy) that pays out a tax-free lump sum should the insured be diagnosed with a life-threatening illness or suffer a serious health event while the policy is active. Unlike traditional life insurance, critical illness insurance issues a benefit while the insured is alive, providing them and their family with financial support as they manage the financial and health impact of a life-threatening illness. It should be noted that the critical illness insurance benefit is only paid if the insured is diagnosed with a covered illness, as specified in the policy. The proceeds of the insurance can be used fully at the discretion of the insured.

Does critical illness insurance cover COVID-19?

COVID-19 is not listed as a covered condition for critical illness insurance. This means that a COVID-19 diagnosis alone will not qualify you for a critical illness insurance claim. This is largely due to the fact that not only is the virus strain new, but it also has a high recovery rate, with many people only suffering mild to moderate symptoms.

That being said, if a coronavirus infection leads to another serious illness or condition—such as organ failure and the need for an organ transplant—the policy holder will typically be eligible for a critical illness benefit. Most critical illness insurance providers offer coverage for up to 26 diseases or health conditions, including heart attack, stroke, and cancer.

Can I start a critical illness insurance policy after I’ve had COVID-19?

Yes, it is possible to purchase critical illness insurance coverage after you’ve been diagnosed with COVID-19. Life insurance providers that supply critical illness coverage have not changed the application process to account for the coronavirus. Where the diagnosis may have an impact, however, is the timing of when your critical illness insurance application is submitted and in determining the premium rates you may qualify for. 

For example, if you’ve had the novel coronavirus, it will have to be disclosed—along with other health conditions and medical history—to the insurance provider. They will then assess your risk of being diagnosed with a critical illness in the future, which will influence your premiums. Additionally, if you’ve recently been diagnosed with COVID-19 and are applying for critical illness insurance, the approval process may be deferred until at least 14 days or in some cases at least a month after recovery or complete absence of symptoms.

How does COVID-19 affect my life insurance policy?

Life insurance companies in Canada have not made any changes to the life insurance product or application process to adjust for Coronavirus risks. So life insurance policies will continue to provide coverage for Coronavirus-related deaths for new life insurance applications, once those have been approved. In fact, in 2020, over $154 million was paid out in covid-related death claims in Canada. 

However, if you have been recently diagnosed with Coronavirus or are currently awaiting diagnosis or treatment of the same, insurance companies will likely defer the approval, until after such treatment is complete. Most companies are currently proposing a deferral of at least 14 days to a month after the complete absence of COVID-symptoms. 

To learn about how COVID-19 is impacting life insurance coverage and applications, head to our FAQ page about COVID insurance.

What other insurance policies will cover COVID-19?

The federal government as well as other regulatory bodies have put resources in place to protect your financial wellbeing during the pandemic. If these resources do not meet your needs, you may consider protecting yourself with insurance. Disability insurance products are designed to pay a monthly benefit to replace a loss of earnings if you are unable to work due to illness or injury for the length of the policy, or until you return to work. Typically, there is a waiting period before the benefit payments start. This waiting period can be between 1 to 26 weeks for short term policies or up to 2 years for long term disability insurance policies. Should a Coronavirus diagnosis lead to a loss of income, the insurance companies will make a payment as long as the minimum waiting period is complete. Some companies may even waive the waiting period in the case of a positive diagnosis.

Want to learn more?

Critical illness insurance is a great option for those who are concerned about future diagnoses and the costs associated. With critical illness insurance, some of that financial burden and worry can be alleviated. 

Try our free critical illness insurance calculator to figure out how much coverage you might require or speak to our friendly advisors.

The information above is intended for informational purposes only and is based on PolicyAdvisor’s own views, which are subject to change without notice. This content is not intended and should not be construed to constitute financial or legal advice. PolicyAdvisor accepts no responsibility for the outcome of people choosing to act on the information contained on this website. PolicyAdvisor makes every effort to include updated, accurate information. The above content may not include all terms, conditions, limitations, exclusions, termination, and other provisions of the policies described, some of which may be material to the policy selection. Please refer to the actual policy documents for complete details. In case of any discrepancy, the language in the actual policy documents will prevail.  All rights reserved.

If something in this article needs to be corrected, updated, or removed, let us know. Email editorial@policyadvisor.com.

BMO Insurance Critical Illness Insurance rating and review

As one of Canada’s largest financial institutions, BMO can take advantage of its heft and economies of scale to offer clients comprehensive, customizable critical illness coverage at the best prices through its Living Benefit suite of products.

There is a large difference between using an insurance agent and a brokerage. Sometimes you will hear people referring to them as an insurance intermediary, which is somebody who plays a major role in the process of insurance placement (in simpler terms, somebody who helps you find a great insurance policy).

If you’re an individual or small business owner, you will likely purchase an insurance policy using an insurance agent or broker. Your average insurance broker is meant to represent the client (or customer) themselves, as they are not appointed by an insurance provider. You’ll likely come across either a broker, agent or company in your search for coverage as you interact more with the insurance industry.

Using an insurance broker

Insurance brokers are professionals who represent the customer and search for the best possible policy according to their needs. They’ll work closely with clients to research optimal coverage options, as well as go through the quoting process. Insurance agents often serve an insurer’s best interests, while brokers are more focused on keeping the customer happy by identifying specific needs for their policies or helping find a policy with the lowest insurance premiums.

Seeing as brokers don’t work for the insurer themselves, they don’t have the power to manage your insurance claims. While they cannot manage claims, when you purchase your insurance through a broker they can give you professional advice while you search for your insurance quotes. They’ll help you figure out an optimal price point, as well as consider what sort of options (like riders or deductibles) apply to your policy.

Using an insurance agent

Insurance agents sell insurance products to customers directly through an insurer. They help people select the right insurance to buy, but they are generally representatives of the insurance company they work for. Captive agents tend to represent one insurance company, while independent insurance agents often represent multiple.

Selling policies on behalf of the carrier means they have some skin in the game when it comes to you choosing their particular policy. While rare, there may be times when an insurance agent is focused on making a sale (as opposed to making sure you get the perfect insurance policy). Insurance agents don’t tend to offer as many options as brokers since they are limited to the specific companies they work for (and policies those companies offer).

The importance of insurance brokers

Most insurance brokers aren’t just in it for the money. When you decide to work with an insurance brokerage, you don’t have to worry about feeling limited – you can purchase insurance products and get insurance quotes from multiple companies, as opposed to just one. They’re going to point you in the right direction and help you find the best policy possible.

Having access to insurance brokers is advantageous for most people. Without them, not only would you be limited in regards to your policy options, but also which companies you’re able to receive insurance quotes from.

Versatility is an obvious selling point for brokers, so if you’re looking for a more “personal approach” to your insurance, using a broker’s services is the best solution. An insurance broker will provide you with an unbiased opinion on the policy provided by any insurer, as they aren’t “tied” to one carrier (like an insurance agent).

Insurance brokers are also more likely to support you when compared to an agent. If you’re not satisfied with the product and want to switch your insurance company, an insurance agent will go to great lengths to persuade you from leaving their company. Whereas, in the same circumstances, an insurance broker will be able to assist you in finding a better solution with a different company’s insurance offerings.

For true flexibility and the ability to see all of your options before committing to a policy, purchasing insurance products through a broker is ideal.

Are all insurance brokers the same?

While some insurance brokers are going to seem more beneficial than others, many Canadians are choosing to work with digital insurance brokers these days. This is especially true given restrictions on in-person meetings and places of business due to COVD-19 to mitigate transmission risk.

For example, a digital life insurance broker like PolicyAdvisor gives you a chance to get life insurance quotes from multiple companies without leaving the comfort of your home (not to mention critical illness insurance, disability insurance, mortgage protection, and more). Digital brokers can generate and provide insurance rates much faster and the ability to apply online is something most people would favour over the traditional insurance buying experience of years past.

Other reasons to consider a digital broker:

• More choice; digital brokerages like PolicyAdvisor matches you with coverage options from more than 30 Canadian insurance companies
• Speed; you can compare quotes instantaneously instead of waiting for multiple brokers or agents to get back to you
• Unbiased advice; the advisors at PolicyAdvisor don’t work on commission and are dedicated to finding you the best insurance policy you can afford and guiding you through policy applications.

How do insurance brokers make money?

Insurance brokers are often paid by commission for their services, so they’re going to benefit from getting you the best policy possible. The insurer pays brokers a certain percentage that is determined differently by each carrier.

If you decide to cancel your policy or stop making payments, the broker you’re with may have to repay the commission they’ve received back to the insurance company. As a result, it means most brokers are focused on getting you the best policy for your needs so that you retain the coverage throughout your term.

They could also decide to charge you a broker fee, which always has to be disclosed to the buyer beforehand. Your province may have a restriction when it comes to broker fees, but just remember that they’re typically nonrefundable. Broker fees are not always applicable and are not permitted in certain provinces or on certain kinds of coverage, so be sure to check your provincial insurance regulations before making such a payment.

What kinds of coverage can you get through an insurance broker?

Insurance brokers work within several fields including:

• Life insurance
• Critical illness insurance
• Disability insurance
• Health insurance
• Auto insurance
• Home insurance
• Travel insurance

How does insurance regulation work in Canada?

Insurance regulations in Canada are handed down from both Federal and Provincial levels. Canada’s 13 provinces and territories in total have the right to regulate markets when it comes to insurance sales. This means they are effectively the insurance regulator and that they get to decide who gets to sell insurance, as well as what type of insurance they’re able to sell.

Times are always changing, and that means the types of insurance available to you are likely going to follow suit. With digital brokers like PolicyAdvisor, you can rest assured that the ways you compare and apply for insurance coverage will evolve to match your needs. When you want to feel confident that you’re covered for the future, working with an insurance broker is one of the better choices you can make.

The information provided herein is for general informational purposes only. It is not intended and should not be construed to constitute legal or financial advice.