Many people continue to consider life insurance an unnecessary expense. This is mostly due to the illusion that life insurance doesn’t come cheap. Many people stay under the impression that life insurance is expensive and usually not very affordable. They couldn’t be more wrong. As times have evolved, life insurance, like computers, has become very affordable. Also people have more options than ever to choose from under life insurance. In addition to the high affordability, there are plenty of ways by which one can save on life insurance premium costs. Read on to find out what these are, so you too, can save on your life insurance premiums.
Tips for Saving Life Insurance Premiums
Get it while you’re young
The cost of purchasing life insurance will be a lot lower if you purchase it at a young age. Young age is normally associated with better health, hence insurers will be more favourable towards you. This is why when you get it at, say 32 years, you will be paying premiums much lower compared to what a 52 year old individual would be paying for the same plan.
Assess your financial situation and then decide on coverage
When you purchase life insurance, the cost of premiums will be an added expense in your budget. If you are not careful in choosing your coverage, you may end up paying too much towards your insurance cover, which you may not even need. Therefore, it is important to evaluate your financial situation (assets, savings, liabilities, dependents, etc.) and then decide how much coverage you exactly need to ensure that your loved ones will be able to live comfortably even when you aren’t around.
Sounds odd, but it is relevant. Most of us associate driving with car insurance wherein your driving habits can help lower or even increase your car insurance premiums. However, a less than ideal driving record can also affect your life insurance premiums, as it means that you are more likely to be at risk while driving.
Term Insurance is always more favourable
When it comes to choosing between a term insurance plan and a whole life plan, it is wiser to go for the former. Term plans are pure risk protection plans which are designed to provide cover against the risk of death. Term plans are valid for a shorter duration as compared to a whole life plan which is valid for a lifetime. However, the main advantage of a term plan is that it is far more affordable, and allows you to get a high amount of coverage at a lower cost. However, whole life plans are significantly more expensive in terms of premiums. Considering these factors, a term plan is definitely a better option if you are looking at getting life insurance coverage at an affordable cost.
Make your health a priority
As we grow older, our age is only going to deteriorate with time. Aging is inevitable and will lead to poorer health. However, making healthy lifestyle choices while you are still young, can have a positive impact on the aging process and your overall health when you’re older. Eating a healthy and balanced diet, ensuring your body gets regular exercise and sleep, and not indulging in unhealthy habits like smoking, can greatly contribute to not only a healthier you, but also help bring down the cost of premiums on your life insurance policy.
Smoking kills, is something all of us know, But some choose to ignore it still. Tobacco products have long been known to cause cancer, which is a life threatening disease. Every year, thousands of people lose their lives due to cancer that has been caused due to smoking. While it definitely isn’t easy, but quitting smoking can also help in bringing down your life insurance premiums.
Look Around Before Buying
If you are in the market to buy curtains, it is very unlikely that you will simply visit the first shop that you go to and purchase the first thing that the shopkeeper presents you with. You will look around, visit several shops, find out the rates from multiple sellers before you decide what you want to buy. The same goes for life insurance too. When it comes to life insurance, it is even more important that you do ample research before making your selection. Go online and compare between different insurers and the policies they are offering. Also turn to your friends and family to find out about plans which they may have purchased to know more. Basically, do your homework thoroughly before you decide on the plan you want to buy.
Look for an independent agent
When buying insurance, it is always a better idea to either look out on your own, or enlist the help of an independent broker who is not associated with any particular company. An independent broker will not be inclined to sell you plans from only one company. Instead they will understand your requirements and suggest plans from a variety of insurers, which may be cheaper than what an insurance agent associated with a particular insurer suggest.
Choose a higher deductible
When you choose a higher deductible amount, you are automatically lowering your premium rate. Deductible is basically an the amount which you pay when an insurance claim arises, before the insurance company can start providing coverage towards the claim. With a higher deductible, you can save considerably on your premiums.