Do you have life insurance?

Life insurance is one of those things in life that people tend to hold off on. Why? Well, there are two main reasons. Firstly, thinking about your death is pretty morbid and probably not something you want to spend your time focusing on. Secondly, finding the right life insurance policy for your needs isn’t easy and, traditionally, is a long and drawn-out process. However, thanks to PolicyMe, that’s no longer necessarily the case.

In this PolicyMe review, I’m going to share what life insurance is, why you may need it, and how it’s now easier than ever to purchase life insurance thanks to PolicyMe.

What is life insurance and do I really need it?

It is important to note that not everyone needs life insurance. Generally speaking, as soon as you have any dependents, then you should get a policy since life insurance is a financial tool that can help and protect your family and loved ones. That said, some people get life insurance policies that will cover any costs if they were to pass suddenly.

If you have life insurance, you will pay a monthly or annual fee (known as a premium) for an agreed-upon duration of time. Should you die during this contracted period, your beneficiaries (your family) will receive a lump-sum payment that is tax-free.

Your beneficiaries can use the life insurance money as they wish, however, life insurance can come in very handy in situations where you have liabilities that still need to be paid off (for example, a large mortgage). Or, if you have dependents that rely on your financial support in their day-to-day life (e.g. your children). By having life insurance, you are protecting those that you leave behind and ensuring that will not be burdened by your debts or the sudden loss of income.

Think about it, if your family depends on your income and you were to pass suddenly, that could be a huge issue. You could simply purchase a life insurance policy that would replace that income so your family isn’t left struggling financially.

Term life insurance vs permanent life insurance

When it comes to purchasing life insurance you have two options: term life insurance or permanent life insurance. Here’s what you need to know about both.

Term Life Insurance

If you choose to buy term life insurance, you will only be covered for an agreed upon amount of time. This may be a set period, say, for 20 years. Or, until a certain age, for example, you are covered until the age of 65. If you pass away during the term agreed upon in your contract, then your beneficiaries will receive your life insurance. However, if you pass away at a time outside of your contact, there will be no payout- even if you paid into it for those 20 years.

Some term policies can be renewed, but this is something you will need to look into before buying. I personally have term life insurance and recommend it to most people.

Permanent Life Insurance

Permanent life insurance is, as you likely guessed, coverage until death. The premiums are fixed and because it is a life-long policy, more expensive than what you would pay with term life insurance. However, as long as you make all of your payments, your beneficiaries will receive their lump sum at the time of your death, whether that be at the age of 45 or the age of 100.

Unlike term life insurance policies, premium life insurance policies allow you to build up a cash value and some policies will let you take a loan out on that cash value. However, if you do this remember that if you do not pay it back, it will reduce the amount your beneficiaries receive.

It is important to note that both types of life insurance are only valid so long as you make your regular agreed-upon payments. 

What is PolicyMe?

Now that you know what life insurance is and why you may need it, let’s move on to how to choose and purchase it.

As I mentioned earlier, life insurance can be a pain to get. It takes, on average, 10 weeks to get insured. Those looking to purchase life insurance are also expected to know exactly what they want/need or, are made to sit down with a broker to discuss their options. While the idea of sitting down with a broker may be attractive, some of these brokers may aim to up-sell their products. Plus, who has time to just meet up with an insurance broker?

Thankfully, there’s now an alternative to help you find a better-priced policy to fit your needs.

PolicyMe is a digital life insurance advisor that aims to make buying life insurance easy. This platform allows users to get advice, compare, and buy insurance policies online. There’s no need for face-to-face meetings, no up-selling or pressure, just honest and bias-free options to help you choose the best life insurance for your needs.

Behind this online platform is a team of licensed advisors ready to help with any questions you may have. However, it’s important to note that despite having these advisors on hand, you are not paying any additional fees by choosing to purchase your life insurance through PolicyMe. PolicyMe has its own agreements with life insurance providers, allowing them to offer you their services at no additional cost. In fact, shopping through PolicyMe can actually help you save money on your life insurance plan.

PolicyMe is currently Canada’s #1 place to find life insurance and, at the time this article was written, has a rating of 4.91/5. It’s currently available to residents of Ontario, British Columbia, Alberta, Manitoba, New Brunswick and Nova Scotia.

Using PolicyMe to Shop for Life Insurance

Shopping for life insurance using PolicyMe is easy. The first step is to fill out the online questionnaire. It should take about five minutes and, based on your answers, the PolicyMe algorithm with cypher through your information and provide you with customized recommendations that fit your needs. A list of quotes will then be emailed to you to browse through as you wish.  

With this personalized list, you can compare the different quotes provided. When you find one that you’re happy with, you can either move ahead to file your application or, if you have any questions, you can speak to one of the PolicyMe advisors. None of the advisors are commission based, they all earn a salary, so they are focused on unbiased advice vs. overselling insurance.

Again, I think it’s important to reiterate that PolicyMe is non-biased and will not push or pressure you. One of their standout features is their honesty. In fact, if you don’t have dependents, PolicyMe is very upfront in telling you that you don’t even need life insurance.

While there are individuals to talk to if you need help or clarification, if you want to go through this entire process on your own, that’s fine too. There are no requests for phone numbers to follow up, so you can do your research without having to worry about being harassed.  

Tips for Getting the Best Rate for Life Insurance

Unsurprisingly, life insurance isn’t exactly cheap. However, there are a few tips and tricks to help ensure that you get a better rate for your premium.

Shop Around

Take the time to do some research and shop around for the best rates. There are plenty of life insurance providers, but they aren’t all the same. Using PolicyMe in your research is a fast, easy, and effective way to make sure you get the best rates for your needs when it comes to buying life insurance.

Choose term life insurance

Term life insurance is significantly cheaper than permanent life insurance. If you are looking to save money, your best bet is to choose term insurance that you can renew if you need to.

Get a medical exam

Proving that you are healthy can save you a fair chunk on your premium. If you don’t have any health problems, then choose to get a medical exam so you have proof of your health conditions. This can take a decent sized chunk off your premiums.

Be smart when choosing your insurance amount

We all want to make sure our loved ones are taken care of when we pass, but remember the higher the insurance policy, the more you will need to pay on your premium. The key is to make sure you have enough to cover your debts and the loss of income when deciding on an insurance amount.

Final thoughts

Life insurance is an important financial tool and while not everyone will need it, it may be something you want to look into. It may not be the most pleasant thing to think about, however, PolicyMe makes it easy to find a life insurance policy for your needs quickly and without any hassles meaning you can rest easy knowing your family will be taken care even when you are no longer here to do it yourself.

Get a life insurance quote now with policyme