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How To Reduce Your Life Insurance Premium?

How To Reduce Your Life Insurance Premium?

reduce life insurance premium

Life insurance is a critical part of financial planning. Yet, quite a large number of people forgo this peace of mind because they harbour reservations about its cost. However, there are a number of handy tips you can make use of to lower your life insurance premium.

That said, a cheap policy may not be the best insurance plan to bank upon. However, there are ways to keep the insurance premium to a minimum without compromising on the best life insurance policy you need. By putting certain tips and tricks into practice, you can ensure you avail the maximum amount of coverage at nominal costs.

Insurance premiums are set after considering a number of factors, including age, health, habits and lifestyle. Some of these factors are within your control while others are beyond your influence, but they decide whether your insurance premiums will be expensive or within your budget.

5 Ways To Reduce Your Life Insurance Premium

Start Early: The tendency among the youth is to live life to its fullest without thinking much about the future because it’s such a phase of life when you want to innovate, experiment and discover. However, when it comes to life insurance, the earlier you start, the better it is. It helps you reduce life insurance premiums, besides offering multiple other benefits. Your premium amount will be based on factors like how soon or likely the insurer thinks you are to claim and your health conditions. The older you are, the higher the chances that you’ll suffer from health issues in the near future. If you buy the best life insurance policy at an early age, you'll qualify for cheaper premium amounts than you might when you're older.

Don’t Over-Insure: There is no denying that we all need life insurance coverage to protect the future. But does it mean the higher the coverage, the better off you are? No, that is a common misconception. Some people don’t buy sufficient amount of cover to reduce life insurance premium, and that’s the biggest mistake one can make. On the other hand, there are people who get over-excessively insured. Over-insurance is a situation wherein you buy more coverage than you actually need. If you’re over-insured, you end up paying more than you need each month, and lose the cash you could spend putting into practice a healthy lifestyle. So, it’s always better to do proper math before you opt for a life insurance policy. Life insurance isn’t only about coverage and investments for the future; it’s also about utilizing the plan to your advantage without burning a hole in your pocket. The key here is to get the right amount of coverage.

Stop Excessive Drinking, Smoking: Most insurers ask about your health status while issuing a life insurance plan and some insist that you must get a health checkup done to obtain a policy. All of this is because your health is a major factor in determining your mortality risk. Adopting healthier habits will keep you healthy and safe, and most importantly cut the risk you'll need to claim. When your insurer gets to know that you maintain a healthy lifestyle and have no health-related issues, it will reduce your life insurance premium.

Excessive smoking and drinking habits put you at a higher risk of health hazards. Avoid picking up such unhealthy habits; if you’ve already picked up these habits, quit as soon as possible because they negatively impact your health and increase your mortality risk. Therefore, if you’re a smoker, the insurer will ask you to pay more premium than a non-smoker. Similarly, the insurer will charge you more if you drink too much.

Compare Policies: Each insurance company has its own terms and conditions, and methods of assessing risk and liabilities of offering a particular plan to a particular individual. This may result in different premiums for the same cover for every individual, depending upon his or her hobbies, profession, health conditions etc. Therefore, it’s highly advisable that you compare insurance plans before purchasing one. This can be time-consuming but allows you to choose the best plan according to your present and future needs. To reduce your life insurance premium, you can also purchase a suitable policy online. Purchasing a policy online is the cheapest way to buy insurance, since there is no intermediary involved in the process. It not only saves you money, but also time.

Also Read - Prepaid Insurance

You can also reduce your life insurance premiums by avoiding hobbies and occupations that are full of risk, cutting down one or two riders, getting rid of obesity or opting for a lesser tenure.

Click here to Use - Online BMI Calculator

Canara HSBC offers you an optimum amount of coverage at affordable premiums. With its iSelect Smart360 Term Plan, you can choose from a wide variety of options to customize your coverage. You also get heaps of additional benefits, ranging from spousal cover to maturity benefits. Secure your family’s future by purchasing enhanced coverage at nominal rates.

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