Guide to Save Your Term Insurance Premium!

A term plan is one of the cheapest life insurance policies. It pays a huge death benefit for affordable premiums. However, the good news is that you can reduce the premium by following some simple rules.

Here is a guide on how to save on insurance premiums for term policy:

  1. Stay fit

An unhealthy person is considered to be a risky customer by insurance companies, and this leads to high premiums. If you are fit and healthy, the insurer will grant you a discounted premium, as you are at a lower mortality risk. Apart from this, being healthy will surely boost your overall wellbeing.

  1. Avoid smoking

One of the most effective ways to reduce insurance costs is to avoid smoking completely. If you are a smoker, you are at a higher risk level, as smoking leads to serious health issues and even death. Hence, smokers have to pay a higher premium compared to someone who never smokes.

  1. Start early

Buying your life insurance policy early will help you get a reduced premium. Do not wait until you get old or ill to buy the insurance policy. It is suggested that you must buy your first term plan right after getting your first job. This way, you will get a good deal on the premium and benefit more in the future.

  1. Opt for the right tenure

Choosing the right tenure for your term plan is essential. You must plan for a life stage when your family will require more financial assistance. If you plan accordingly, you will be able to avoid the risk of letting your family down.

  1. Pay annually

You can surely reduce insurance premium by paying it annually. Paying monthly or quarterly will make your premiums smaller, but you will also have to pay a processing fee every time. It also comes with administrative costs for the insurer. Hence, paying yearly will grant you a discounted price.

  1. Buy a simple plan

Some term insurance policies come with add-ons for additional cover. It also adds up to your premium. If you want to buy a term plan with the lowest possible premium then opt for a simple plan with no added cover. You can always buy other life insurance policies later for other benefits.

  1. Buy online

If you are still wondering how to reduce your insurance premium, buy the insurance policy online. When you are buying the policy online, the insurance company can save time and money on paperwork, agents, and brokers. So, the insurer can offer you a reduced price while buying insurance online.

  1. Add riders according to your requirement

If you are considering buying riders with your term insurance policy, you must know that it will increase the premium. Riders can enhance your policy; however, if you also want affordable pricing, you must plan the riders accordingly. Opt for only the ones you absolutely need so that you do not end up paying an additional amount for a rider that is not beneficial to you.

You can use the above guide to lower the premium of your insurance policy. However, remember that when looking for term insurance plans, give more importance to the death benefit than the premium, as protecting your family is your most important responsibility.

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