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Ways To Reduce Premium For Life Insurance
Total Articles: 3
Money plays a very important role in our lives. More than getting us comfort and luxuries it brings us security. Money is the fuel on which the machinery of human society runs. That is why the lives of earning members in our family are very important. Their hard earned income gets household running. A halt to such income from the unfortunate death of that individual disturbs the flow of the house. It causes ripple effects on the life of every family member. Apart from the immense emotional stress they go through the family has to mend their lifestyle to accommodate that event.
The severity of the repercussions depends on various factors like the extent of responsibility on the deceased person, age group and ability of the dependents etc.
This is a serious threat if we look at life more practically. The longevity of life is a mystery no one can solve, no one can predict for a healthy person how long he is going to live. Then why should we expose our family, the ones we love so much to such inherent danger? Every prudent person must plan for alternatives that can replace his income post his death. One of the most reliable and easy alternative is to get yourself a term insurance plan
A term insurance plan is life insurance in its purest form i.e. it is a contract with the insurance company in which you pay a regular periodic or lump sum payment called premium to the insurance company and in return the company promises to pay a specified sum periodically or lump sum to your nominee in case you die within the duration of the policy. The cause of death is irrelevant; however in the first year of the policy death from suicide is not covered. From subsequent years even suicide is covered.
Ideally one should get his full working life covered so that there would be no loss of income because of death. To reduce premium certain things can be done.
• Enter in the plan as early as possible
• Have healthy habits like no smoking
• Compare plans wisely
Term plans are generally very long term plans and have no maturity benefit. Thus, you would like to keep the premium as low as possible. Term plans are the cheapest life insurance plans provided you buy at an early age. The entry age is of high importance as premium swells as you age owing to the fact that the risk to life increases with age. The earliest age to get you a term insurance plan is 18. Ideally as soon as one starts earning and has dependents on that earning, one should get a term plan. Another way to check the premium is to have a healthy lifestyle. Poor health habits like smoking add a loading to your premium. For severe health cases there are chances that the company may not even accept the risk and deny policy issuance. Thus, keeping yourself healthy is in your favour from insurance view as well.
One of the most important practices to reduce premium is to compare term plans very carefully and intently. People save handsomely when they buy insurance after effective comparison.
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