February 21, 2022

The Modern-Day Guide on How to Get Life Insurance the Easy Way

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We get it, getting life insurance sounds like hard work. It doesn’t have to be. Find an easier way with Walnut.

You know you’ve hit peak adulthood when you’re suddenly weighing life insurance options over the dinner table. Whether you’re newly married, about to start your own family, or purchasing your first home, you could benefit from thinking ahead.

Although “the future” can be intimidating, life insurance doesn’t have to be, if you know what to look out for. Thanks to modern tech, the long wait times, confusing policies, and things we hate about insurance are no longer part of the picture. To help you navigate this new era, we’ve put together a trusted guide on how to get life insurance in 2022, without all the pains you’ve heard about in the past.

Why do you need life insurance?

We’re willing to bet your life looks pretty different now than it did five or even ten years ago. So aside from life insurance just being the “responsible thing to do” or a rite of passage, you’ve got to think about what’s best for your future and loved ones. 

You’ll want to take advantage of your good health while you can and protect your family from future expenses that might incur after your death. No one can predict the future, but life insurance can financially support your spouse, kids, or family that depend on you, and help them — and you — gain some peace in the face of uncertainty.


What’s the right type of insurance for me?

There are two main types of insurance: term life insurance and permanent life insurance. To better compare and contrast the two, we’ve whipped up a table to help you choose what’s right for you.

  Term Life Insurance Permanent Life Insurance
What is it?

The most common and cost-effective type of insurance where you pay an annual premium for a temporary amount of time, typically between 10, 20, or 30-year terms

Protection that lasts your entire lifetime (as long as you continue paying your premiums)
Who is it best suited for?
  • Young families
  • Homeowners
  • Business owners
  • More established individuals
  • People who have maxed out their RRSP, TFSA, RESP contributions
  • People who have more savings than they could ever touch
What are the perks?
  • Cost of premiums are lower, especially when you're young
  • A great investment vehicle (can rack up cash value with its savings component)
  • Cost of premiums don't increase with age
What are the drawbacks?
  • Premiums increase with age, so whenever you renew your terms, premiums will go up
  • Coverage only protects you during the time of your term
  • More expensive than term life insurance

How much life insurance to buy 

Once you have a good idea of which type of insurance makes sense for you, your next question will be: how much do I need? Every person and their situation is different, so it’s best to carve out time to crunch your numbers and understand why life insurance should be part of your plan.

Before pulling the trigger on any plan, you’ll need to take stock of your financial situation. Here’s a basic checklist to get a pulse on where you’re at.

Questions to ask yourself before buying life insurance:
  • Do you have an emergency fund?
  • Do you have retirement savings?
  • Do you have a mortgage? More than one?
  • What are your debts?
  • Do you have any life insurance through your work?

90 percent of Canadians undershoot the amount of coverage they think they need, which can put them into the dangerous position of being underinsured when a death occurs. One of the ways to assess how much insurance you’ll need aside from seeking a financial advisor is by using an insurance calculator

Our rule of thumb is to choose a policy with a death benefit that’s at least equal to 10x your annual salary. This amount should be able to cover all your expenses. Be sure to consider child support, university tuition, mortgage, and other ongoing bills you have. For more information, check out our article on how much life insurance costs.

How to get life insurance with health problems

When it comes to getting the proper coverage and the rate that you’ll pay, a whole slew of things matter, like your age, gender, lifestyle, and health conditions.

Life insurance tends to be more affordable when you’re younger and healthier. And the longer you wait on getting it, the higher the chances of encountering a health issue that would increase the cost of your premiums.

Life insurance is an average of 19% more expensive for males than females because of their statistically shorter lifespans. But gender isn’t the only determining factor. Insurance companies can charge you a higher premium if you smoke or participate in high-risk activities such as bungee jumping.

In some cases, you might have to undergo a medical exam to assess your existing health conditions. What the true cost of life insurance is all comes down to your risk.

Life insurance bundled with daily benefits

Many insurance companies offer competitive quotes, and it’s fairly easy to compare plans. However, for more personalized products and experiences, and even faster service, insurtechs like Walnut can help you get the job done without any fuss.

Skip the paperwork and red tape that you hear about submitting insurance applications. Walnut’s subscription-based memberships are built on automation systems that are primarily self-serve and digital-first, allowing you to choose a flexible plan anywhere, anytime. 

Best of all, Walnut combines life insurance with everyday benefits like meditation with Headspace, online security with Dashlane, and physical fitness with ClassPass at low monthly rates. We give you the coverage you need, with the subscriptions you love.

Start living the good life today.

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