Life insurance is a must in today’s world not just for you but your entire family. We can never know what life has in store for us, and if life throws a curveball at us, we need a Plan B to take care of our family, when we are no longer around. The right type of insurance plan can help you protect your family financially, in the unfortunate case of your death.
In fact a life insurance policy is considered as an investment as its main focus is to provide safety for your family in case of your death. This is a tool created for the financial safety of your family in case you are no more around. And when it comes to your family, you need to be smart enough to choose the right plan.
Now when we talk about smartness wouldn’t it be amazing if you got the best suited plan for a low premium? After all, savings is essential for everyone. In this article, we have a few important points that you can take note of to reduce premiums while purchasing a life insurance plan.
Tip #1: Buy insurance at a young age
The first advice any finance professional would give to a young person who has started earning is to invest in a life insurance policy. This is because, the younger you are, the lower will be your premium.
Premiums are heavily dependent on the age of the policyholder. The older you are the more will be the premium because an older person is more prone to diseases. The younger people are believed to be at the pink of their health so that premiums are also lower.
Tip #2: Choose the ideal policy term
The period of the policy is a crucial factor that determines the premium cost. This is why it's recommended to check the policy period, before buying an insurance policy. The shorter the tenure, the higher will be the premium. For example, if you are an employee then we advise you to take the coverage maximum till the age of 55-60 years so that you can meet all your obligations, while reducing the overall premium costs.
Tip #3: Follow a healthy lifestyle
When you are healthy then you will get to pay a lesser premium. Insurance companies give a lot of importance to an individual’s medical history. Suppose you are suffering from diabetes or heart disease or high blood pressure then you are likely to die sooner than a healthy person. So stay healthy.
Tip #4: Avoid smoking/drinking
Smoking and drinking have a negative impact on your health. Not just your health but it will affect the premium of your policy because when a person smokes then they are at a higher risk for health related problems. This results in a higher premium compared to others as high risk means higher premium. Therefore to get a lower premium it is best to avoid such habits.
Tip #5: Compare policies before buying a plan
It is greatly advised to compare policies before zeroing in on an insurance plan. This is also another important factor one should consider while shopping for a policy. Don’t get influenced by ads or swayed by recommendations from your family or friends.
The right policy must be chosen based on you and your family’s needs. Compare the quotes of various life insurance plans at CreditMantri and find the best plan according to your needs. Go for the plan which offers your adequate coverage at an affordable price.
Tip #6: Pay your premiums on time
You must always pay your premiums on time. If you fail to do so then a late payment fee will be charged which will therefore increase the amount of your premium.
Tip #7: Do not include add-ons/riders that you don't need
Many insurance companies offer additional cover or add-ons at additional charges. But extra coverage means extra cost. Therefore it is best to measure your requirements and then choose only the riders or add-ons, that you absolutely need and are likely to use. This helps in keeping the premium costs low.
Tip #8: Buy life insurance policy online
When you buy policies online the rates are comparatively less than that of the offline policies. That is because there are no additional costs in terms of middlemen such as agents and other intermediaries, you directly buy it from the insurance company.
Finally, proper research and right information will help you find the best policy which can save you a lot on your premiums. Therefore, consider the above mentioned points while buying a policy to reduce your life insurance premium costs.
Final Thoughts
Companies selling life insurance policies take into account various factors to set the price of the premium. Some of these factors may be within your control while others are not. By controlling the factors that are within your ability to influence, you can try to become a relatively risk free customer for a life insurance company, so that they are likely to charge you lower premiums.