There are many payments that need to be a part of our monthly budget. If you want to give your family a financial safety net after you’re gone, adding life insurance should be one of them. It can give you lifelong coverage and come with additional financial benefits.

However, many people don’t get life insurance as they fear the monthly premiums will be too costly. That leads to the question of how much does whole life insurance cost? Here you’re going to find out all the answers.

What Does Whole Life Insurance Cost in Canada?

We thought we’d start by addressing this question head-on. The cost of whole life insurance in Canada can vary wildly based on a wide range of factors. For whole life insurance, it can range from around $40 to well over $1,000.

That’s because there are significant factors that can affect these costs. To understand the approximate figure on what you’ll pay, it’s important to understand what these factors are. After that, we’ll look at some more specific examples.

Understanding Whole Life Insurance

Before that, let’s confirm exactly what type of life insurance we’re looking at. Whole life insurance comes with the death benefit that is paid out to the beneficiaries, but also a savings component. Over time, this savings component grows and can be used in a variety of ways, such as for borrowing or withdrawal. With whole life insurance, you pay a permanent premium until the policy ends.

This is in contrast to term life insurance, which is only valid for a fixed term, such as 10 years. This is cheaper than whole life insurance but isn’t a permanent policy. There is also universal life insurance, which is similar to whole life insurance but instead of having a savings component, the extra money is invested instead.

Key Factors Affecting the Cost of Whole Life Insurance in Ontario

There are many factors affecting the cost of whole life insurance, but some are more important than others. Here’s what they are:

Age – Age is the biggest common factor affecting your insurance costs. As you’ll be able to predict, the older you are, the more you’ll have to pay. This is the simple fact that older people are closer to death and are more likely to have health issues. The difference in premium between a 20-year-old and a 70-year-old is vast.

Death Benefit – This is the lump sum the beneficiaries are going to receive. The higher the death benefit, the higher the premium. However, many see this as a price worth paying as it will provide more security to the beneficiaries.

Health and Medical History – For those with existing medical conditions, you’ll find rates to be much more expensive. Many insurers will require a medical exam as part of their underwriting process but even if they don’t, lying about your medical history can invalidate your policy.

Smoking Status – Smokers will pay significantly higher premiums due to the many associated health risks.

Gender – Women tend to live longer than men and do less dangerous jobs. Therefore, women pay lower premiums.

Riders and Add-ons – Any additional features to your policy will increase your premium. Examples are critical illness coverage and waiver of premium.

Related Article: https://www.marathoninsurance.ca/blog/what-does-critical-illness-insurance-cover/

Typical Cost Ranges for Whole Life Insurance in Ontario

Now we know the key factors, we can better understand the rate you may need to pay. These are estimates and the amount you pay may differ.

Non-Smokers with $250,000 Death Benefit

Age 30 – $75 to $150 per month

Age 40 – $125 to $250 per month

Age 50 – $225 to $375 per month

Age 60 – $350 to $600 per month

Non-Smokers with $500,000 Death Benefit

Age 30 – $125 to $250 per month

Age 40 – $200 to $400 per month

Age 50 – $400 to $650 per month

Age 60 – $650 to $1,200 per month

Smokers with $250,000 Death Benefit

Age 30 – $150 to $275 per month

Age 40 – $250 to $450 per month

Age 50 – $450 to $800 per month

Age 60 – $800 to $1,400 per month

Smokers with $250,000 Death Benefit

Age 30 – $250 to $475 per month

Age 40 – $450 to $800 per month

Age 50 – $800 to $1,500 per month

Age 60 – $1,400 to $2,700 per month

In terms of how much it costs with other death benefit amounts, you can roughly work it out from the figures above. If you double the benefit amount, the payment will be approximately double as well. And if you half the benefit amount, the payment will approximately be half too.

How to Get the Best Life Insurance Rates

If you’re worried your premiums may be a little too high, there are a few steps you can take. Here are some great tips:

Start Early – The earlier you start paying for life insurance, the lower your premiums will be.

Improve Your Health – Having a healthy lifestyle can decrease your rates. If you want to make changes, bridging the gap with term life insurance can be a good idea.

Compare Quotes – Different insurers will offer different rates. Shop around and compare multiple quotes.

Work with a Broker – An experienced broker can help you navigate the complexities of whole life insurance. They can also work with multiple insurers to find the best quote.

Final Thoughts

Whole life insurance is a significant financial commitment. However, the benefits are clear, as it can provide financial security for your beneficiaries after you’re gone. It’s best to start early and find a policy that suits your needs.

Permanent life insurance policies can be complex, and it can be a great idea to work with an insurance broker. If you’re interested in a policy, then contact Marathon Insurance today and we’ll be more than happy to help.