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How Can You Lower the Insurance Premium
- DetailsWritten by PolicyBazaar -
- Hits : 4083 -
Modified 17 June 2016
Studies reveal that the life insurance industry in India is one of the largest with 360 million products. However with the huge population it is only the tip of the iceberg. Insurance can make life easy by reducing the stress of unpredictability. However, when it comes to deciding on a policy, most of the investors get overwhelmed with the premium amount. As there are several insurance plans which offer premiums which are two to three times more expensive than others, you should be aware of the right way to distinguish between the affordable and the expensive plans.
Reduce Life Insurance Premium
It is advisable that you start investing in an insurance policy as soon as you start earning to meet the premium. At a younger age you will have to pay a lower premium owing to productive life, lesser risk and good health. Thus, the best way you can lower the premium is by not delaying the purchase of the plan. The premium will get costlier as you age. Apart from age, life insurance premiums are determined by the family’s medical history and personal habits. Although your age and family history is not in your control, you can control your personal habits. Lay down the cigar and exercise regularly. By being a person who is in good health rather than one with common health problems, you can opt for cheaper health insurance plans.
You may also like Premium Calculator that helps you calculate the required monthly cover in order to get a sum insured desired by you.
How to cut down on auto insurance premium
Find out ways to reduce your auto insurance premium:
- At times insurance companies can charge you more if you have got tickets for violating the traffic. Premiums can cost you more. So it is advised that you drive safely and slowly.
- To lower the premiums you can install safety features in your car and forgo the small claims.
- When you buy an auto insurance and do not make a claim, you will be entitled to a no-claim bonus. Do not go to the insurer for small issues like broken lights.
- Additionally, you can reduce the auto insurance premium by reducing the deductible. Deductible is the amount which the policy holder agrees to pay towards claims and repairs before the policy covers the rest. However, it is important to increase the deductible only as much as you can afford.
- Further, by declaring the correct Insured Declared Value (IDV) you can get your premium reduced. The IDV is calculated by applying the depreciation to the manufacturer’s listed selling price.
Buying Policies Online and Comparing Them
Before deciding on a policy compare the insurance quotes and choose one which is cheapest and most affordable. Based on your requirements and age you may have to switch across insurance. But, when you do so make sure that you cancel the policy which exists only after the new policy comes to effect. You can save yourself from paying the loading charges by buying the policy online instead of buying it from an agent. Loading charges is the portion of the fee which is paid to the agent for selling the polices and will ultimately be borne by you.
Other important tips
It is a good idea to pay the premiums annually instead of paying it multiple times. It may be a difficult option but pays off in the long run. At times insurance companies in India offer special discounts when the premium is paid at once. It is advisable that you opt for an experienced insurance company which covers people who are in the same circumstances as you. Before finalizing on the policy, make sure that you are aware of the policy’s fine print. Keep your eyes open for hidden charges and get all your doubts cleared.Evaluate carefully the need of a rider before you decide to opt for it. You will have to pay extra premium for the riders which offer additional benefits. Lastly, it is important to bear in mind that term insurance can prove to be relatively cheaper.
Let’s take a quick snapshot of tips on how to reduce insurance premium:
Take the policy early on
Determine the right duration of the policy
Buy the policy online
Invest in health
Pay the premiums annually and on time
Opt for term insurance
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