How to reduce your life insurance premium?

Life Insurance helps one live stress-free as it takes care of the financial distress that stems from the unpredictability of life. But many people still hesitate to buy an insurance plan because of the mind-set that there will be no returns or the cost of premium. If you are concerned about the costs of premium then this article might be able to help you with some tips that can bring down your premium. It will also give insight into how life insurance premiums work.

• Be an early bird: Insurance premium rates are directly linked to your age. The premium you are supposed to pay largely depends on your age factor. So it is recommended that you start investing in insurance in your first job itself. The younger you are the lower your premium because there’s lesser risk associated with a young policyholder as they have longer productive life and comparatively healthy. The older you get, the costlier the premium. And that is why you should avoid delaying the decision of buying a term plan.

• Shop Online: Like every other product you should also consider buying insurance online. Since the cost involved in the sale of an online term plan is slightly inexpensive because of the elimination of advisors and various other administrative costs, the benefit gets transferred to the policyholder in the form of lower premium. Online term plans are way cheaper compared to offline term plans. Buying insurance online is simple and hassle free. You’ll not just save on cost but also time!

• Avoid smoking and drinking: Diabetes, hypertension and blood pressure may increase your premium rate significantly. Smoking and drinking will also increase the risk factor and hence increase the premium.