Tips on How to Save on Life Insurance Premium

A life insurance policy must be brought after carefully assessing your personal needs and family’s future goals and aspirations. Sometimes, your insurer even devises the perfect policy plan that lives up to all your needs and demands, but the obstacle of affordability stops you from purchasing it. In this case, some tips can help you lower the payable premium amount to fit it into your budget. Read on to know about them in detail. 

Tips on How to Save on Life Insurance Premium

Here are some tips to help you save on life insurance premium amount.

1. Compare Different Companies

The terms and conditions of different policies vary according to the insurance providing companies. Hence, it is advisable to do thorough research about the sum assured, policy tenure and premium rates, and the claim settlement ratio of different companies to find the most affordable plan. You can get a life insurance policy with the same benefits at a lower premium rate from another insurer. 

2. Prefer Annual Premium Payment Option

The premium on a life insurance policy can be paid through monthly, quarterly, half-year and annual instalments. Here, it is advisable to choose the annual premium payment option to help save money as the monthly payment option includes some additional costs because the chances of policy termination are higher among those policyholders who wish to pay the premium monthly.

You may also like to read:- Different Riders To Opt With Your Term Insurance Plan  

3. Choose a Term Life Insurance Plan

Among different life insurance policies like whole life insurance, ULIPs, endowment plan etc. a term insurance policy is the cheapest as it does not offer maturity benefits. Besides this catch, it is the best option to get desirable live coverage at a lower premium rate.

Must Check:- Life Insurance Company 

4. Buy life Insurance at a Young Age

Purchasing a life insurance policy at a young age when you are healthy will help you get higher coverage at a low premium payment rate because of the low-risk factor evaluation. Hence, it is advisable to buy a suitable life insurance policy as soon as you start earning stable money. Here, a term insurance policy purchased at a young age would be an ideal option.

5. Maintain a Healthy lifestyle

According to some policy guidelines, a non-smoker gets a lower payable premium rate than a smoker as the chances of the former to stay healthy and lead a longer life are higher than the latter. Moreover, it is advisable to maintain a healthy lifestyle if you have a family history of disease and critical illness to increase your chance of passing the mandatory medical examination test before the policy inception and getting a lower premium rate.

Also Read:- Life Insurance for People with Home Loans

Takeaway

You can surely save on the payable premium amount of your life insurance policy through the ways mentioned above. Moreover, it would be best if you read all the terms and conditions of the policy in a detailed manner and even consult an insurance agent or a financial advisor to look for more ways to help you save money on a personal level.