When it comes to insuring your life you'll see that the price largely depends on certain factors such as your sex, age, health condition and general lifestyle. And it's evident that if you're a senior person with serious health issues you will get a heftier price tag on your policy than a teen with no health issues and bad habits. But still, there are certain methods you can employ to lower the final cost of your insurance policy no matter how old or how many bad habits you may have. You may find them really useful and effective in lowering your final rates.
1. Choose the right payout amount
Quite often, insurance companies offer lower premiums for larger multiples within the policy. For example, you may be charged with Rs. 5000 per year for Rs. 1,00,000 in coverage while having Rs. 1000 less in the multiple will actually cost you Rs. 4500 per year. So before you consider taking the policy, learn what the rates are for every Rs. 1000 in coverage, and compare these correlations across different providers. Sometimes the difference is quite big to let the chance go by.
2. Work with a social-conscious insurance provider
Usually, insurance companies tend to offer higher rates for people with complicated and severe health conditions such as heart disease, diabetes or cancer. But there are companies that actually offer discounts to people with such conditions and tend to analyze each case separately, being more social-oriented in their business. So if you have a serious health condition you might want to check out a company like that.
3. Kick bad habits
It's a well-known fact that when you stop smoking and start exercising (and improving your lifestyle to a healthier extent) the cost of insuring your life will be lower. Only that most people don't realize how much lower it can be until they actually stop smoking! Sometimes smokers are charged double the rate that non-smokers of the same age and health group pay each year. Losing weight and engaging in special exercise programs will also lead to significant discounts. But don't think about lying to the insurance company about your habits. If you end up developing a disease related to a bad habit you've claimed you don't have, your policy will be voided and you will get nothing in the end.
4. You don't need riders
Riders provide coverage in case of events not specified by the standard insurance policy. Or, as it always happens in reality, events that are very unlikely to happen. And paying additional money just to have this additional coverage will unreasonably increase your final insurance rates. Think about it and see if you really need this additional coverage.
5. Learn if there are any hidden fees
You will probably be offered with different payment options such as monthly installments to make your payment process more "convenient". But in the end you will end up paying more than you would with a single payment as there are additional fees for using such services. So before you decide on a payment option, calculate what would be the less costly for you rather than convenient.
6. Do some comparison shopping
When speaking about life insurance the rule of shopping around applies just as in case of any other product. Learn what all the companies providing life insurance in your area have to offer, see which one provides the most benefits for the lowest price and choose the one you like. You can compare life insurance offers online too.