Topic 3: Stay healthy, pay less insurance premium
Much like all insurance products, life insurance makes your life easy by taking the stress out that stems from the unpredictability of life. But when it actually comes to taking a policy, most investors get confused with the overload of information and overwhelmed with the premium amount and want to pay as little as possible. If the cost associated with the insurance premiums has negatively affected your decision of buying life insurance premium, then tips below might help you find different ways to lower your life insurance premiums without burning a hole in your pocket.
Start young
It goes without saying, the younger you are the lesser the cost of your life insurance premium. Starting at a young age is the key to lowering your life insurance premium because your age has a direct impact on your rate of premium. Simply put, if you take your policy as early as possible you will qualify for a cheaper premium versus when you’re older as there’s less risk associated with a young policyholder. The older you get, higher are the premiums being charged. To save extra cost on your premiums, it is highly advisable to buy a policy in your early 20s.
Healthy lifestyle
The irony is that the time you would most need a life insurance policy- on the heels of your health issues, would be a time you would least get it or the premiums would be higher. Insurance companies get a medical check-up done before issuing you a policy which reveals your health conditions. Basis which insurance companies decide the rate of premium. This is because insurers are well aware of life-threatening habits and tend to charge a higher amount on the basis of that.
Payment mode
While buying a life insurance policy, you get the flexibility of paying the premium in a number of ways such as annually, half-yearly or monthly premiums. Alternatively, the premiums can also be paid as lump sum. In case, you choose a monthly premium as your mode of premium payment and skip on the dates when it comes to making the monthly premium on the due date, then there are higher chances that your policy will lapse. So make sure you do not miss one.
Start young
It goes without saying, the younger you are the lesser the cost of your life insurance premium. Starting at a young age is the key to lowering your life insurance premium because your age has a direct impact on your rate of premium. Simply put, if you take your policy as early as possible you will qualify for a cheaper premium versus when you’re older as there’s less risk associated with a young policyholder. The older you get, higher are the premiums being charged. To save extra cost on your premiums, it is highly advisable to buy a policy in your early 20s.
Healthy lifestyle
The irony is that the time you would most need a life insurance policy- on the heels of your health issues, would be a time you would least get it or the premiums would be higher. Insurance companies get a medical check-up done before issuing you a policy which reveals your health conditions. Basis which insurance companies decide the rate of premium. This is because insurers are well aware of life-threatening habits and tend to charge a higher amount on the basis of that.
Payment mode
While buying a life insurance policy, you get the flexibility of paying the premium in a number of ways such as annually, half-yearly or monthly premiums. Alternatively, the premiums can also be paid as lump sum. In case, you choose a monthly premium as your mode of premium payment and skip on the dates when it comes to making the monthly premium on the due date, then there are higher chances that your policy will lapse. So make sure you do not miss one.