Categorized | Life Insurance

How Can You Reduce Life Insurance Premium?

Life insurance is essential, but when you compare and purchase an insurance plan the first thing you need to look for is how much money you are investing on your premium. As there are hordes of insurance plans, some offering premiums up to two to three times more than the other, you should know the right way to distinguish between the most expensive and affordable ones. Given below are a few tips you should keep in mind while choosing an insurance plan.

Apparently, Your Life Insurance Premium is Determined by Three Main Factors:

  • Age
  • Family’s medical history
  • Personal habits
Though your age and family’s medical history are not under your control, your lifestyle and personal habits invariably rest in your hands. Let’s take a sneak peak at the various lifestyle changes you could adopt to lower your life insurance premium:

Laying Down The Cigars
Non-smokers have a longer life than tobacco users. So, if you are a non-smoker then you have a few more years to settle the premium installments before coughing up the Beneficiary of your insurance cover.

Shedding Those Extra Pounds
By exercising regularly, you can maintain a slimmer body and good fitness levels. This means you keep away from various fat-accompanying problems like cholesterol, blood pressure, and heart diseases by exercising regularly. By being a person who is in good health rather than being one who is prone to common health problems, you can opt for cheaper insurance plans. Ultimately, it diverts you to lower insurance premiums.

Driving Slowly and Safely
Insurance companies charge heavily when you have got more tickets for violating the traffic rules. At times, those premiums could cost you more than your car insurance premiums. So, drive slowly and safely.

Cutting Back on Alcohol Consumption
Insurance companies charge hefty premiums when you don’t have a good medical history.

Here are Additional Tips to Help You Land up on Lower Premiums:
  • Compare various insurance quotes and choose the cheapest.
  • Based on your age and requirements, you may switch from a permanent insurance to life insurance to take advantage of cheaper premiums. However, when you do so, ensure that you cancel the existing Policy only after the new policy comes into effect.
  • No Load life insurance policy-Every company charges a portion of fee (loading charges) which is paid to the agent for selling the policies, which is ultimately borne by you. Hence, if you buy your life insurance policy from an agent, it costs higher. To get rid of this, buy your policy online and save your money.
  • Try paying the premiums annually- This may be difficult but is a great option. Insurance companies offer special discounts when you pay the premiums at once (annually) rather than paying it multiple times (monthly).
  • Choose an experienced insurance company that offers cover to people with conditions similar to yours- If you have any existing medical condition then ask your broker to find an insurance provider that best suits your needs and requirements. Accordingly, compare and choose a cheaper premium.
A word of advice is, first make sure that you are completely aware of the insurance policy’s fine prints. Look for hidden charges and clear all your doubts with your Insurance Broker before signing up.