Life insurance is a policy where an insurer promises to provide death benefits to the family of the policyholder against a premium. An insurance company decides these premiums on various factors. These are;
  1. Age and Gender
  2. Coverage amount or Life Cover
  3. Medical Conditions
  4. Nature of Job and Other Related Factors
  5. Yours and Your Family’s Lifestyle

While taking an insurance cover, you can try and look for ways to reduce your premium. Here are some tips that can help you in reducing life insurance premiums:

  1. Starting Early: The earlier you start investing in a life insurance policy, the lower the cost of premiums. This is because you have a higher chance to stay alive until the end of the policy tenure. Also, at a young age, you're more likely to stay fit than at a later point of time.
  2. Choosing Payment Frequency: You can usually pay the premiums towards your policy on a yearly, quarterly or monthly basis. Paying yearly, reduces the cost of the premiums, as the company gets the amount for a year in advance. Also, opting for online payment methods helps to avoid third-party charges like the fees of an agent which can impact the insurance premiums.
  3. Removing the Unnecessary Riders: Riders or add-ons offer extra benefits and coverage. But they also come at an extra cost. Look carefully at the terms of the policy and make sure you only pay for the riders that you need.
  4. Stay Fit: There's no alternative to this. Being obese or physically unfit decreases your life expectancy and hence, increases the cost of the premiums. Refraining from alcohol and tobacco will also help to lower the amount you have to pay towards the policy.
A Word of Caution
While trying to reduce your life insurance premiums, ensure that you select the right coverage amount. Don’t select a coverage amount that may be inconsequential to you or your family.

Be Careful While Taking a Life Insurance Policy

Life insurance policies make sure your family and loved ones don't get face financial difficulties in your absence. But these policies are based on certain terms of death only. Your nominee might be denied the claim you didn’t disclose some important facts such as medical history, smoking habits, etc. Be clear on the terms and inclusions/exclusions of a policy before going for it. Don't opt for a policy just because of lower premiums.

Learn more about online life insurance plans here.

DISCLAIMER

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.



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