123ArticleOnline Logo
Welcome to 123ArticleOnline.com!

ALL >> Insurance >> View Article

Ways To Reduce Premium For Life Insurance

By Author: Akanksha Agrawal
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.

Total Views: 118Word Count: 527See All articles From Author

Insurance Articles

1. Infoglobaldata Launches Accurate And Verified Database Of 128,132 Insurance Agents Email List
Author: Mark Griffith

2. Why Your Parents Need A Separate Health Insurance Plan
Author: Willie Gunn

3. Professional Mortgage Loan Advisors Can Help You Choose The Best Deal Suitable For Your Financial Ne
Author: darvinjarel

4. Select The Best Personal Loan In Pakistan
Author: Muhammad Waqar Asghar

5. 5 Tips From Miami Nationwide Auto Insurance Providers
Author: insurance

6. Things To Know About Travel Insurance An Effortless Way To Safeguard Your Trip
Author: James felix

7. Top 5 Tips To Compare Funeral Insurance Rates
Author: Funeral Insurance NZ

8. Property Insurance Claims New Jersey: Areas To Cover And Points To Note
Author: Donna

9. Ambulance Cover In Australia | Ambulance Insurance | Iselect 
Author: Anya

10. Overseas Visitor Cover In Australia | Visitor Insurance | Iselect
Author: Anya

11. An Affordable Auto Insurance California Leads To A Secure Future
Author: caleagleinsurance

12. Road Rash: 10 Random Car Facts You Didn't Know
Author: Pranavi Jain

13. 5 Tips On Reducing Auto And Boat Insurance Premiums
Author: insurance

14. Private Health Patients Have Waiting Lists Half The Length Of The Public System
Author: Anya

15. Important Considerations To Review Before Purchasing A Covered California Insurance Plan
Author: Sandra Pianalto

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: