8 Ways to Reduce Life Insurance Premiums

Life insurance is certainly one of the best ways to take care of your family' s future in case of any eventuality. In fact, it is considered as the most important investment as it works towards the safety of the insured person's family members after his/her demise. Through a life insurance cover, the insurance company ensures your family's financial security is maintained even when the breadwinner is not around. It acts as cover that saves your family from being deprived of the material necessities that they may require in your absence.

As this investment involves your family, you need to be smart enough to choose the right policy. But as a smart investor, you should also look for a combination of factors to save on your premium cost. To help you understand better, here are the following points that you need to keep in mind while buying a life insurance policy -

• Buy insurance at a young age - It is advisable for a person to start investing in an insurance policy as he/she starts earning. As younger the age, lower the premium. Because the premium of your insurance policy increases with age. Thus, prefer buying an insurance at a young age if you want to avoid paying higher premium.
• Choose the ideal policy term - The tenure of your policy plays a major role in determining the amount of premium. Thus, one must consider the policy term while buying a life insurance policy. The longer is the term of your policy, the lower will be your premium. For instance, if you are a salaried person, then it is advisable to take the coverage till the age of 50-60 years so that you can meet through all liabilities easily.
• Follow a healthy lifestyle - A healthier person will get to pay lesser premium. As insurance companies nowadays are giving too much attention to the medical history of the policyholder. If a person is suffering from high blood pressure or heart disease, then he/she is more likely to die earlier than the person without such health problems. Lifestyle ailments like blood pressure and hypertension can increase the amount of your premium. Thus, it's good to maintain a healthy lifestyle.
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  Avoid smoking/drinking habits - Both of these habits have a negative impact on your health. Health plays a very important role in deciding the premium of your insurance policy. So, if you smoke regularly, then you're at a higher risk of getting health-related problems and you have to pay a higher premium than others as higher risk means higher premium. An insurance company considers these factors too while determining your premium amount. Therefore, to lower down the amount of premium, you must avoid the habit of smoking.

• Compare policies before buying a plan - This is yet another important thing that you need to consider while buying a life insurance plan. Never take any decision of buying a plan on the basis of ads or recommendation from your relatives or closed ones as everyone has different needs and wants. After comparing other plans, you can choose the one that offers adequate coverage at an affordable price.
• Pay your premiums on time - It is advisable to pay your premiums on time. In case an insured person does not pay his/her premiums on time, then a late premium fee will be charged which will increase the amount of your premium.
• Do not include add-ons that you don't need - Many insurance companies offer additional cover at additional charges. Remember, extra protection comes at extra cost. Thus, you must evaluate your needs and opt only those riders that you actually require. As this will help you lower down the amount of your premium.
• Buy policy online - As compared to offline plans, premium charged for an online plan is comparatively less. This is because there's no additional cost as you are directly buying from the insurance company, not from the agents and other intermediaries.

On the whole, the correct information and right research will help you find the best policy which can save thousands on your premium. Thus, you must consider these above-mentioned factors to reduce your life insurance premium.

Besides, if you are looking for an adequate life insurance plan online, then go for Canara HSBC OBC Life Insurance. We offer several different types of life insurance policies, including Invest 4G ULIP plan that offers risk cover along with additional investment options as per your needs.