Buying a life insurance policy is the most convenient way to ensure the financial security of your loved ones. If you are planning to buy a life insurance policy, the amount of premium payable will be your major concern. The amount of premium is decided by the insurance companies considering various factors. While insurance companies will not directly negotiate the premium, there are many other ways to reduce your life insurance premium significantly. Here’s how to save premium cost on your life insurance purchase:-
Smoking has been linked to several life-threatening diseases such as heart disease, cancer, and stroke. Moreover, smoking decreases your life expectancy by several years. Consequently, smokers have to pay a higher premium for life insurance as their life expectancy is reduced. Hence it is a good idea to quit smoking before taking up a life insurance policy, as you can pay a lower premium. Use this as a motivation to quit smoking.
Lose Some Weight
If you are obese you will have to shell out a higher premium, as obesity increases your health risks. Obesity is linked to several lifestyle diseases such as diabetes, hypertension and heart disease. If you lose some weight and stay fit, you will be charged a low premium.
The earlier you buy life insurance, the cheaper it will be. This is because health risks increase with advancing age. Hence life insurance companies consider age as a factor before calculating the amount of premium payable. Therefore, the wait might prove costly for you. You can buy a life insurance policy as soon as you start earning, at a very low premium.
Choose a Longer Tenure
The premium payable is also dependent on the tenure of the life insurance policy. The longer the tenure of the policy, the premium tends to get lower. Hence it is always a good idea to opt for a life insurance with a long tenure as you can pay lower premiums and stay protected for a longer time.
Avoid Riders You Don’t Really Need
Additional policy riders come with an additional price tag. While your insurance agent might recommend them to you, avoid choosing them unless you really feel the need for it.
Pay Your Life Insurance Premium Annually
You can reduce your premium costs significantly by choosing to pay your life insurance premium annually. When you pay multiple premiums in a year, insurance companies tend to add extra charges to cover additional costs incurred by them due to this. Ultimately, your premium amount increases as a result of multiple payments.