A life insurance policy would provide financial security to your loved ones in case of your untimely and unfortunate demise. Therefore, if you are the sole breadwinner of the family, purchasing a life insurance policy becomes all the more important. However, before you settle for a life insurance policy, there are two major factors that you must take into consideration, i.e. the sum assured and premium. You must always look to purchase life insurance with a high sum assured and low premium. Nowadays, you can easily compare various life insurance policies online and choose the one that best suits your needs.Also, you can make use of a life insurance calculator to get an estimate of the premium. You should settle for a life insurance with affordable premium so that you can pay the premium easily without straining your finances.
Below, we are going to have a look at some tips that can help you bring down the premium of your life insurance policy:
Purchase a life insurance policy at a young age
The premium of your life insurance policy largely depends upon your age. The younger you are, the lower will be your life insurance premium. At a young age, you are less susceptible to chronic ailments such as diabetes, hypertension, etc., and hence the premium would be low. Since the premium would remain fixed for the entire policy duration, purchasing a life insurance policy at a young age can help you save a large amount in the end.
Buy a term insurance plan with limited pay option
Term insurance plan is a type of life cover in which the insurer would pay sum assured to the nominee in case of your untimely demise during the policy term. However, if you survive the policy term, you won’t receive any maturity benefit. The premium of a term plan is comparatively lower than ULIPs and endowment plans.
You can also consider purchasing term plan with limited premium pay out. This type of life insurance policies allow you to pay premium for a limited term while your coverage continues for a longer duration. For example, if you purchase a term plan that offers coverage for30 years and has a premium payment term of 15 years, you would be required to pay premium only for 15 years while the coverage would continue for 30 years.By opting for a term plan with limited pay out, you will be able to tackle the financial burden of paying premiums for longer durations.
Maintain a healthy lifestyle
The healthier you are, the lower will be your life insurance premium. For instance, if you are a heavy smoker or you consume alcohol on a regular basis, it is likely that your life insurance premium will be high. On the other hand, following a healthy lifestyle, and abstaining from tobacco can significantly reduce your life insurance premium.
Now that you are well aware of the various ways to reduce your life insurance premium, ensure that you make the most of it while purchasing a policy for yourself. Nowadays, with leading insurer providers, you can purchase life insurance policies online from the comfort of your home. You can also pay the premium online and renew your policy in a hassle-free way. Moreover, you can track the details of your insurance policy online. You can also set reminders for premium payment of your life cover. This will help you renew your insurance policy on time, thereby preventing it from lapsing. Another advantage of renewing your policy on time is that you won’t have to bear any penalty while reviving a lapsed policy.