Factors to keep in mind to reduce your life insurance premium, but not the coverage

Most of the time people compare their life insurance policy with their peers and end up asking ‘why am I paying more than my peer on my policy’. While many insurer or agent will just answer you by saying that it is the age that factors in to decide your premium. We will oppose it, age is just a number and rightfully so. There are many factors that leads to an increase or decrease in your life insurance plans premium.

So, without thinking much let’s walk you through some ways in which you can keep your premium pocket-friendly without compromising on the coverage.

Select an adequate sum assured
Apart from selecting a suitable life insurance policy, the next huge thing is to select the correct sum assured. The entire purpose of purchasing an insurance thrives when you choose an adequate life cover. The unassuming answer to how to lessen whole life insurance premium is to reduce the sum assured. Keep in mind that you should always have a balance between adequacy and affordability when you want to reduce the life cover or term insurance premium. At this stage, keep crucial parameters like your future working years, dependents, and lifestyle needs in mind to decide better.

Start young to get advantage on the life insurance policy
Term life insurance is one of the best life insurance policy. Term plan is one of the best life insurance plans as it very affordable and it expires at the end of a specific period. You can plan to buy this insurance even at the beginning of your career and to get maximum benefit of this plan you can club in critical or terminal illness cover, which means you will be paid a lump sum amount on diagnosis of life-threatening diseases to help you with funds to cover the medical expenses. So, rather than waiting for the right age to start with this policy, understand that when you start is actually the right age.

To be specific, there is no right age to buy a term plan. So, the best way to lower your term plan premium without affecting its holistic coverage is to buy it in the initial years of your career. The younger you are, the lower will be the premium payable, whereas the coverage will remain unaffected.

Do not let premium bulk up with unnecessary add-ons
One of the vital factor to keep in mind when choosing a life cover is to know what all are you getting basis it. You can definitely strengthen the benefits of a term insurance plan by including additional riders with your base policy. For instance, you can add critical illness and disability rider with your basic term life insurance policy. But understand that add-ons are meant to give you extra protection and financial security against medical emergencies. So, it must not weigh you down or make your premium unimaginable. When selecting add-ons check the entire list available for your life cover and then choose the best life insurance inclusive of certain covers without disturbing the policy premium or making it extravagant. The idea is to select add ons, which you absolutely need and can easily afford.

Keeping these pointers in minds, there are different types of life insurance policy that you can choose from:

  • Term life insurance: Term plan is one of the best life insurance plans as it very affordable and it expires at the end of a specific period.
  • Whole life insurance: This policy provides you a coverage till you turn 99.
  • Unit Linked Insurance Plans: This type of life insurance policy offers life cover along with investment opportunities.
  • Endowment/ Saving Plan: This offers you a life cover along with a path for savings.
  • Money Back Policy: This is life cover that offers you payments at regular intervals. A percentage of the Sum Assured in this case is paid back you at during intervals during the policy tenure.
  • Child Insurance Plan: This policy helps you safeguard the future of your child.
  • Retirement Plans: This policy is good to build a steady retirement corpus so that you can enjoy your post-retirement days with ease.

Given the digital world we are living in, you can easily get a quote for your life cover or the term life insurance online, in just a click. Comparing quotes from varied agents and insurer is also easy. But, if you approach us, we will give you everything at one place. We at Akshar – best life insurance agent in Mumbai understand your need for a good life insurance policy in Mumbai. So, we tailor the best life insurance for you keeping everything comprehensive and budget-friendly. We walk with you like a friend to get the details about life insurance plans, and only offer you the one that agrees with us. After all, it’s your hard-earned money!

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