Life insurance guide

Choosing your policy

Once you’ve decided that you’re ready to get insurance, the first thing you must do is determine your insurance needs. We recommend using our easy-to-use needs calculator to help you with this calculation. Next, you’ll want to shop around and compare policy costs with different companies. When you’re ready, you can complete and submit your insurance application with the help of a licensed advisor to make sure that you’re getting an insurance policy that’s tailored to your needs. In some cases, medical tests are necessary. And, finally, once you make your first insurance premium payment, you’ll be officially insured!

What coverage amount do I need ?

To determine your coverage amount, consider how much financial support your family would need if you weren’t around. Consider the following :

Your debts : If you don’t want your debts, such as mortgage loans and other significant debts, to be a burden on your loved ones, include them in your calculation.

Replacing your salary : If you have dependents, it would be important to plan for a certain amount of money that will serve to replace your salary for a few years in the event of your death.

Other items include a fund for your children's education, or funeral costs, for example.

You can also use our needs calculator to help you with these calculations.

What coverage period do I need ?

When it comes to temporary life Insurance, the coverage period of your insurance should be similar to your debt terms and the number of years your children, spouse, or parents will be dependent on you. For example, if your mortgage loan won’t be paid off for another 16 years, and your children are beginning elementary school, a 20-year insurance coverage period may be appropriate for you.

Our needs calculator can also help your determine a the duration of your insurance coverage period.

Comparing life insurance quotes

To get the best value for your insurance policy and find a plan that matches your needs, it’s critical to shop around and compare what different insurance companies have to offer.

For example, here are two quotes proposed by two different insurance companies :

$300,000 temporary life insurance coverage over 20-year period

By the end of the 20-year coverage period, Insurance #1 will have cost $950 less than Insurance #2.

Keep in mind that when shopping for insurance, there’s really no point in turning to several insurance brokers because the price for the same insurance product is the same for all brokers. However, if you want to compare the prices of different insurance companies, an independent broker (like us!) will help you compare prices.

Comparing Temporary Life Insurance Product Conditions

Don’t just shop around! Be sure to look into each insurance policy’s terms and conditions. Here’s what you should pay attention to :

Renewable Insurance

By the end of your coverage period, a renewable insurance policy will allow you to extend your coverage period for the same term. For example, if you purchased 20 years of insurance at age 25, you’ll have the option to renew your insurance for another 20 years when your turn 45 years of age. However, the amount you pay for your insurance will be changed according to your age at the time of the renewal.

Convertible Insurance

With convertible insurance, you can convert a given amount or the total amount of your temporary life insurance into permanent life insurance.

Tip : Be honest when you apply for insurance. Insurers rely on your truthful answers to provide you with a fair price. If you provide inaccurate information, your policy may be canceled.

Buying Insurance

Buying life insurance is one of the most important purchases you’ll make in your lifetime, but it doesn’t necessarily have to be painful or annoying. With us, this purchase will be simple, transparent and carried out in a manner that suits you. Our certified experts can meet with you in person, or contact you by phone, e-mail, or chat. They’re always available to help you!

There are two ways to go about purchasing life insurance. There’s the traditional process, which can be quite lengthy as it involves in-person meetings, paperwork, and sometimes, medical examinations. And, there’s the express process, which can be rather quick due to its digital approach and integrated smart processes. For instance, if you’re in perfect health, applying for insurance via an express process will only take 0.05% of the traditional application process time! Karma offers both processes to suit everybody’s needs. So, if you’re looking to get insured in a snap, you'll easily find the Express tag once you begin your Karma application and you’ll undoubtedly recognize the smart Karma process.

The Traditional Insurance Issuing Process

Duration : between 3 to 6 weeks

Steps :

  • Complete application
  • Medical examinations
  • Insurer processes application (underwriting)
  • Approval and receipt of your insurance policy

Express Process

Duration : Between 15 to 45 minutes if a medical exam and underwriting aren’t required.

Steps :

  • Complete the application and instantly find out if you’re approved.
  • If necessary, medical examination or underwriting.
Instant Approval : If you’re in good health and are looking to save time, choose an insurer that allows you to apply via a smart online platform. You could be approved in less than 60 minutes!

What are you waiting for?

Now that you understand life insurance and have a solid foundation, you can shop around confidently to find coverage that meets your needs. Understanding the different insurance types, the insurance pricing conditions, as well as the steps involved in the insurance purchasing process, you’re equipped with the knowledge and tools required to protect your loved ones. Now, there’s no need to procrastinate! Apply everything you've learned while shopping for your life insurance. If you’d like to learn more, check out our insurance and personal finance blog for more tips and tricks from our expert team!

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