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How to Save Premium Cost on your Life Insurance

The premium rates and affordability of premium is one of the most common reason people think twice fulfilling their life insurance needs. While finalizing an apt insurance product the investment cost of the policy comes first in mind and the advantages offered by life insurance end up being secondary.

While zeroing in on a policy it is very important to check that how much premium you can afford. Nevertheless, it is not suggested to compromise on the policy coverage just to save some extra cent. Apart from comparing the quotes of different policies online, there is plethora of ways to reduce the premium cost without compromising on the features of the insurance cover that you want to purchase.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

In order to understand that how to reduce the premium cost, it is important to know that how the insurance companies determines the premium cost. There are certain factors that are considered by the insurers like insured person’s age, heath, geographic location, lifestyle, etc. while determining the premium cost of the policy. So, in order to help you saving the premium costs here we have discussed some factors that can be helpful to save the premium cost.

Buy Your Insurance Policy at Early Stage of Life

If an individual buys a life insurance policy at early stage of life then he/she has the advantage to buy the policy at low premium cost. As the mortality risk among young individuals is very low the insurance companies generally offers very attractive policy coverage at an economical premium rates. With the increasing age of the insurance seekers the premium costs increases stereotypically. So, when it comes to buying a life insurance policy it is most wise and best to buy the policy at early stage of life as delaying can cost you more.

Buy a Term Plan

As compared to various types of insurance plans offered by insurance companies like ULIP and Endowment plans, term Insurance Plans are very economical and simple to understand. For instance, a 30-year-old salaried individual can purchase a term insurance plan for Rs.50 lakhs of life cover. The yearly premium of the plan will start from around Rs3,500. The term insurance plan also frees up the rest of your savings for investment in more profitable avenues like Mutual Funds. 

Compare Prior Zeroing in on the Plan

Do not buy the policy just for the sake of buying. It is very important to compare the policies online prior zeroing on a particular plan. As there are wide ranges of insurance products available in the market compare the plans online and choose the most suitable plan in most economical premium rates. Although, most of the term insurance plans offers similar features, according to the premium rates of the policy the claim experience varies. With the help of premium calculators the insurance seekers can easily find two similar term plans offered by different insurers at different prices. Comparing the plans help you to buy the most beneficial insurance policy at best affordable rates. Moreover, nowadays as most of the insurance products are available online, one can get the quotes easily. 

Maintain a Healthy Lifestyle

The premium rate of Life Insurance policy and the acceptance of policy application depend on the health of the applicant. The insurance company may ask the policy buyer to undergo physical health checkup. The premium rates of the policy can be affected if the buyers have the habit of smoking. The insurance companies apply a very simple concept while determining the premium rate of the policy. The premium cost of the policy is defined on basis of the mortality risk of the individual and maintaining a healthy lifestyle automatically reduces the mortality risk. Thus, the premium rate of the policy also reduces simultaneously. 

Buy It for an Ideal Tenure

If you choose a policy that has a long tenure, the premium rates of the policy will automatically cost you more. For example, if you buy a policy for 10 years of tenure the premium rate will start from around Rs3,300. Whereas, the premium rate of 30 years tenure of the policy will charge around Rs4,110. The insurance buyers should choose the optimum tenure till the time they have financial dependents. 

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Buy Online

Last, but not the least, try and buy the policy online. By purchasing the policies online one can save a lot of money which is spent on agents, brokers, etc. who take commissions. The commission taken by brokers and agents is not included in the premium charges of the customers. So, by buying the policy online one can easily save a lot of time and additional cost. Moreover, by purchasing the policy online the insurance buyer can also check the review of the policy and choose the policy.

By keeping above mentioned pointers in mind, one can bar themselves from burning a hole in the pocket without compromising on the coverage.

Written By: PolicyBazaar - Updated: 21 January 2021
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