That's why, generally, life insurance, disability insurance, critical illness insurance and most other personal insurance products will increase the premium they offer you depending on: - Your age - Health - Habits (Smoking etc.) - Medical History - Family History, etc.
Another measure that will factor into how your insurance premium is calculated is the term. With life insurance, disability insurance and critical illness in Ontario you can purchase a 10 year term policy, 20 year term policy or a policy that lasts for life. This is referred to as your insurance policy term.
During your insurance policy term, your insurance company cannot revoke your insurance or increase your insurance premium. Even in the event that you have a health problem, move to another country, change income sources, start a bad habit – as long as you make your insurance payments, your insurance company must honour your insurance policy terms throughout the insurance term.
Anytime you are looking at any insurance product whether it is a 10 year term insurance policy, 20 year term insurance policy or a policy that lasts for life, the shortest term policy is almost always the cheapest insurance option. For example, if you were looking for a term life insurance policy, a 10 year term life insurance policy would be the cheapest option.
As mentioned you can obtain life insurance, disability insurance and critical illness insurance that guarantees the insurance premium will never increase for the life of the contract. These policies are often more expensive than the term insurance option but can carry perks that make the additional cost worthwhile.
Critical illness insurance is a great example of an insurance product where you can get an insurance premium that will be guaranteed for life, and carries an extra bonus. After 15 years, if you don't make an insurance claim you can receive 100% of your insurance premiums paid back to you. At that time, if you don't want to cash out, you can continue making your monthly payments at your guaranteed premium and rate of payment. As you get older and become at higher risk of having a critical illness, you will enjoy a low critical illness insurance payment and will have excellent critical illness protection. You can choose to cash out all your premiums at any time after 15 years.
Whole life insurance also guarantees your insurance premiums for life and carries major income tax incentives.
A qualified Life Insurance Agent will be able to assess your personal circumstances and recommend the right product for you, ensuring the lowest rates.