How to lower your life insurance premiums? Naval Goel-CEO, PolicyX.com
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How to lower your life insurance premiums?

You have already lost a lot of time by not purchasing an insurance policy because of the amount of premium; do not delay any further and get a policy right away as per your need.

Naval Goel   
  • November 30, 2016  
  • |  
  • UPDATED   16:19 IST

Naval Goel
With around 360 Mn policies, the Indian life insurance industry is considered as the World's largest. But in a country of a billion people, this is still a very small number. Why? It is so because people get overwhelmed with the amount of premium.
If you are also one of the many people who deter from purchasing a policy because of the premium amount, here are a few tips that can help you get a policy at a lower amount.

Tip #1: Go get a policy now!

Experts are of the opinion that the younger the age, the lesser the premium. You have already lost a lot of time by not purchasing an insurance policy because of the amount of premium. You should not delay any further and should get a policy right away as per your need.

Tip #2: Right duration will do the trick!

Selecting the right tenure of your insurance policy can also make a difference in the premium amount that you are trying to save. The common mistake that people do is that they think that the longer the duration, the lesser will be the premium amount. Instead what one should do is that they should get a cover till the time they think they can earn. This ensures that too much money is not shelled out in paying premium amount.

Tip #3: Online - Your money-saving partner

The power of online also proves its mettle in the insurance field. Since the selling cost of an online insurance policy gets lower because of the elimination of several administrative costs, you can reap the benefit and pay a lower premium amount.

Tip #4: Timely payment

For all those who already own a policy, they need to know that paying insurance premiums timely can also save them their money. Failure to do so can lead to penalty which will further increase the cost. Hence, they need to make it a point that whenever their premium amount is due, they should clear it that very moment. Other than this, there's one more reason to pay premiums timely which is to avoid the tag of a defaulter which is responsible for ruining a person's financial credibility when they opt for purchasing another policy.

Tip #5: Take care of your health

Before deciding the premium amount, insurance companies ask the insured to undergo a medical check-up. If the results show adverse health conditions, then the premium amount might go for a hike. While one cannot help the addiction to tobacco and other harmful substances, it is advised that they should refrain from such bad habits and a frivolous lifestyle as this can also add up to the premium amount.

Tip #6: Opt for a policy with higher benefit

The basic rule of the more the quantity, the lesser the per unit price also applies when you are purchasing an insurance policy. In simpler terms, the higher the amount of cover, the lesser will be the premium amount that you will have to pay.

Tip #7: Bundling up all the policies that you have

This tip is for those who already have purchased an insurance policy. If you bundle all your policies together, you can reap the advantage of paying lower amount of premiums. The policies need not be of the same type in such a scenario.

Tip #8: Select premium payment mode wisely

There are several options when it comes to paying the premium amount - one-time, annual, half-yearly, quarterly, and monthly. If you choose the annual payment over monthly, your premium amount will lessen.

Tip #9: Go for term life insurance

Term life insurance is way less expensive when compared to whole life insurance. People are of the opinion that one can easily buy a term life insurance policy with just a fraction amount of whole life policy. Furthermore, term life insurance can be easily customized as per the need.

Tip #10: Be smart when investing in riders

The need for additional benefits may arise anytime. Although these benefits can be bought by investing in riders but this means extra premium. So you need to evaluate your need carefully before opting for riders. An insurance policy does not only secure you against the unforeseen threats of life, but it is also a great measure to save money.

Hence it is essential for everyone. So next time if you are planning to not opt for a life insurance policy because of the amount of premium, think again!

by, Naval Goel, Founder and CEO, PolicyX.com