Worried about the life insurance premium spiral? We've listed the 5 fastest ways to lower your life insurance premium. Well, keep these points in mind, but be careful and act with caution.
Shop and bargain
Shop, Compare and Bargain! Well, the oldest principle, old as dust, but still going strong. Once your cover has been decided, don't just subscribe to the first plan that comes to mind. Be sure to shop around (the internet is a great place to start) and get a feel for the market. This would help you bargain hard and get the best coverage at the lowest possible price.
Opt for term life insurance - The fastest way to lower your life insurance premium is to opt for a term life insurance policy instead of a whole life insurance policy. The idea is to keep the insurance as it is and not to make it an investment product. So you can insure yourself under a term life insurance policy at a fraction of the cost of a whole life insurance plan with generally the same amount of coverage. However, remember that term life insurance only covers you for a set period of time.
Stay fit - Be a low risk proposition for your insurer by maintaining a healthy lifestyle and staying away from addictions such as smoking, drugs and alcohol. A good health record will mean a considerable reduction in your life insurance premiums.
Consult an insurance advisor - The easiest way to reduce your life insurance premium is to consult a good insurance advisor. Since the advisor will be a professional in the insurance market, they will be able to provide you with the most affordable deal based on your coverage requirements. Essentially, a good insurance advisor would compare different market rates for you and also negotiate the best rates on your behalf. Well, the internet is a great place to identify an agent.
Start at an early age!
Be sure from an early age. The premium for life insurance at a young age is only a fraction of what it could be when you are well into your 50s. The principle is that young and healthy people are the segment least at risk. The low mortality risk is a great incentive for insurance companies to insure you at lower premiums.
