Death by numbers: Life expectancy

For a variety of reasons, death is one of those topics few people want to openly discuss. Many people, understandably, simply find it an uncomfortable topic. Perhaps then that's why we seem to prefer talking about life expectancy—rather then focusing on the "When might I die?" we instead ask our self, "How long can I expect to live?"

According to the Statistics Canada's Death report (released January, 2008) which looked at deaths—and life expectancies—in Canada in 2005, a child born in Canada could expect to live 80.4 years.

Where you live affects how long you'll live
Where you live within Canada matters, because even though the national life expectancy is 80.4 years, life expectancy in British Columbia is the longest at 81.2 and in the Territories is the shortest, at 76.3. That's a swing of 4.9 years!

Gender inequality
Women still outlive the men. Currently, the national life expectancy is 78.0 years for boys born in 2005 and 82.7 for girls. That's a difference of 4.7 years. But again, the difference varies on where you live. For example, based on provincial life expectancy, Ontario women can expect to outlive their male counterparts by 4.2 years; whereas women from the Territories can expect to live 6.4 years longer.

Reality and your expectations don't always coincide
There's no doubt, knowing your life expectancy is handy. It can help you with your retirement planning for one. But, because we all expect to live to 80.4 years old we often neglect to plan for the "what if?" So while planning for your retirement is absolutely a great idea, planning ahead with life insurance coverage is as well. This is especially true for people who are:

• Married and/or have children
• Have family members (like parents/siblings) who depend on your income
• Have a mortgage
• Concerned their savings won't adequately support loved ones
• Self-employed
• Have debts like car loans or credit cards

Life insurance shopping tips to help you get you started

Consider term life insurance.
Term life insurance typically offers you the most coverage for the least amount of money, and although there is no investment or saving component, there are many who would tell you to "Buy term, and invest the difference."

If you're healthy, avoid guaranteed issue policies.
Guaranteed issue policies are well suited for people unable to get any other life insurance. They typically do not require a medical exam, which is why they often cost more. A guaranteed issue policy is available to everyone, healthy or not, and this is reflected in higher premiums.

Consider a two-in-one policy.
If you're looking to get life insurance for yourself and your spouse or partner, then consider buying one joint policy, instead of two individual policies. The premium is usually about 15 per cent less for a joint life policy than 2 single life insurance policies of the same coverage amount.

Buy only what you need.
Most people know having too little coverage is no good, but so to is having too much. Not only is it unnecessary, but buying too much will generally only cause your insurance premiums to be higher then need be. So before you buy, review your needs. For example, do you want coverage that'll:

•  Pay funeral arrangements?
•  Pay the outstanding balance owing on a mortgage and other debts?
•  Offset the loss of your income? For how long?
•  Contribute to the future education of your children?
•  A combination of all or part of the above?

There are always exceptions to the rule.
Sometimes the more you buy, the cheaper the policy. While not always true, some companies will charge less to encourage you to purchase a slightly larger policy. For example, if you are considering buying $200,000 in coverage, get quotes for the next most common face amount, $250,000. You'll be surprised to see how in some cases the premium is actually less.

Compare standard and preferred rates – but not to each other!
There are two basic life insurance rate groups: standard rates and preferred. Most people qualify for standard rates, while only about one third of the population is eligible for preferred.

Preferred rates are offered to exceptionally healthy people, usually at a lower premium cost, and are offered only once the results of the medical information and tests are known.

Compare quotes.
Compare the life insurance policies and prices of competing insurers because every company prices their policies differently. A real easy way to do this, without having to listen to a sales pitch is to compare premiums and policies online. It's a great way to compare prices and see what different companies have to offer.

Compare life insurance quotes today.