Life insurance rates are simple as they are based on parameters like age, health, and lifestyle.
The older you are, the more you pay.
The healthier you are, the less you pay.
Smokers pay more than nonsmokers.
Above are generally applicable for all policies. Apart from these there are few pointers which can help you can influence your premium outgo which will be discussed below.
First and foremost take account of your finance to judge the right coverage you need. Keep note of your spouse’ expenses or other dependents in case you are no longer around. Remember that more coverage than you need, will definitely push your premiums higher. Select the tenure of the term insurance according to time taken for repayment of mortgage and not more.
Once you have a number in mind, you may find that you can save money by rounding up. Rs 99 is still Re1 less than hundred. Similarly Rs 4,50,000 policy will cost less than Rs.5,00,000 policy. Stick to the coverage you need and don’t get pushed for more coverage if you don’t require it.
If you suffer from diabetes or heart troubles, you need to buy from insurers who offer competitive rates for persons with such conditions. Specially trained underwriters are employed by these companies who review each policyholder on a case by case basis.
You can reduce premiums by not opting for riders you don’t need; as many riders are just costly measures that cover events which rarely occur or they duplicate existing coverage. But some riders may be necessary; for example, people engaged in armed services should make sure that their policy covers death due to war or terrorism.
Remember to check for any hidden fees for which you will need to read the fine print carefully. Some insurers charge extra fees if you pay on a monthly basis rather than up front.
Last but not the least compare policies and bargain for best price. All the products information is available online which makes it easier for you to compare to arrive at a decision. Just bear in mind that you’re comparing like policies with like terms. As a company offering a policy with lower premium for the same coverage may have exclusions that make the policy differ in important ways!
The sure shot way to reduce your premium is to get healthier, meaning – quit smoking and start exercising. As we has already pointed out smokers are charged as high as double the premium as compared to non-smokers (and lying is not a good idea). It is simple if your cause of death is any way related to your smoking habit then claiming to be a non-smoker will not fetch your death benefit.
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