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Tips for Reducing Your Insurance Premiums

  11/27/17 9:03 AM

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Life insurance is a really powerful way of investing your money. However, you might have to pay a huge premium, if you do not do make your choice properly. Just like every investment needs some planning, life insurance is no different. A carefully planned life insurance investment would help you save considerably on the premium amount.

Here are 7 ways in which you can reduce the amount of premium that you pay for the insurance by a significant amount.

1. Maintain a Great Health

Most of the life insurance agencies ask for a personal medical report from a certified doctor before deciding the premium amount that you need to pay. In case you are overweight or have a smoking habit, there is a fair chance that you will see the premium amount stacked against your favour. So, it is time to quit smoking and hit the gym regularly, if you wish to ensure a lower rate of premium for your life insurance policy.

2. Reassess the Span of the Policy

It is not always necessary to go with the longest period of life insurance. A longer life insurance policy period attracts a larger premium. Therefore, you might want to reassess and reduce the span of your life insurance policy to a practical amount (you are comfortable to pay periodically), before purchasing the policy.

3. Compare Various Options to Find the Hidden Charges

It is advisable to purchase a life insurance policy only after comparing the various policies available. Only after assessing 4 to 5 different policies, you should finalise your decision. It is advisable to have a look at the amount of hidden fees and processing charges associated with the insurance. Some lucrative insurance policies are available at a small premium. However, they might work out to be costly due to the additional/hidden charges associated with them.

4. Choose Annual Bulk Premium Payment Options

Several companies offer discounts on premiums, if you are ready to pay the entire premium amount in form of a single premium life insurance policy.

5. Opt for a Term Life Insurance Policy at an Early Age

The premium for a term plan in India is significantly lesser as compared to many other life insurance policies. If you have a great health and are purchasing the policy at a young age, you might engage in daredevil activities/hobbies without affecting the premium policy in a negative way.

6. Get a Life Insurance Policy with Your First Job

It is almost always beneficial to get a life insurance policy as early as possible. The ideal candidate for the least amount of premium is a person in his/her early 20s, starting as a fresher employee. You can avail a life insurance policy at a significantly smaller premium compared to a person who is in his/her late 50s.

7. Think Optimistically and Buy Smartly

Do not buy insurance out of fear, rather understand and evaluate your needs. Do not fall in for additional covers at an extra premium cost, if you don’t think that you would need them. Think whether the benefits you are getting stand as a good deal for your money. Overinvestment in a single insurance plan is not advisable. Instead, it will take away a significant portion of your savings. So, opt for different policies which fit well with your investment goals.

Choosing a good online life insurance policy like the Total Secure+ plan offered by Edelweiss Tokio will provide you with the needed cover at a small premium. It is one of the best-selling term plans that you can buy online.

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