5 Tips to reduce your life insurance cost

It is not possible to negotiate the basic premium rates offered by insurance companies. Using a little common sense and initiative you can however save your self some money and so make life insurance more affordable.

Life insurance rates are based on several factors – your age, health history (including family history), and lifestyle are the primary factors. Keeping the following points in mind, you can surely reduce the costs incurred on premiums.

Annual Mode of Premium Payment

Choosing the annual mode of payment reduces the premium cost. Insurance companies add extra charges to cover additional costs incurred by them if you pay multiple premium rather of single yearly premium. These additional charges increase insurance cost thus ultimately increasing your premium amount.

Start Early

The premium of the insurance plans increases with age. At a young age, you are medically fit and physically sound. This helps in reducing the insurance cost and in turn reduces your premium amount.

Longer Policy Term

The longer the term of the policy, lower will be the premium. Longer duration polices allow you to build the required corpus with smaller premiums.

Do not take riders that you do not need

Additional benefits on policies come with additional charges and increase your cost of premium. You can lower premium costs by opting only for those riders that you actually need.

Keep yourself healthy

Health related issues, Disability problems, Smoking and drinking habits, risky lifestyle all add to the insurance cost thus increasing insurance premium. Keep yourself healthy and fit to get the benefit of lower insurance premiums.

9 thoughts on “5 Tips to reduce your life insurance cost”

  1. The funny thing is, I'm pretty healthy, but b/c I play SO much tennis, I have some knee injuries and sore shoulders. One can do too much for sure.

    I agree with your tips, especially the one about good health!

  2. Its great to write about insurance. In India not many people are aware of insurance. As a Financial & Taxconsultant I totally agree with you. As early you take your insurance the more profitable you are. Your insurance policies should also be diversified. One should should take Traditional plans, ULIP Plan, Pension Plan, Mediclaim Plans. This should also help in tax deductions under Chapter VI A of Indian Income Tax Act.

  3. Hi Shweta,

    Thanks for the site which is really helpful and great!!

    I am 26 yrs and do not have any life insurance plans. I want a pure life insurance plan with lesser premium and not investment linked plan. Please suggest a few.

  4. Very interesting breakdown, indeed. It’s nice to have such information available in one location and some ideas for new and different directions to take to help one stand out.

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