How to Save on Life Assurance Premiums?

If you’re savvy enough, you can actually get some savings on your life assurance premiums. Here are some tips to help you enjoy some premium savings.

  • Go online.

    Online life assurance providers have the added advantage of giving you quotes from various insurance companies. This allows you to shop around for the best prices.

  • Look into term life assurance.

    Term life cover is cheaper than permanent policies such as a whole life policy or an endowment policy. If you need insurance cover only for a specific number of years (while the children are still in school or while there’s a mortgage to be paid), then term life assurance may be an option. Term life assurance allows you to buy lower-priced cover and to invest the difference of the premiums with a higher yielding investment. You should remember, however, that your term life policy may be subject to regular reviews that may raise your premiums and premiums will indeed increase over time.

  • Avoid guaranteed issue policies if you’re in tip-top shape.

    If you are healthy, say no to “no medical” policies or what are called guaranteed issue policies. These policies charge higher premiums since they don’t require applicants to undergo medical exams. “Regular” life policies are cheaper.

  • Get a low-load policy.

    When you’re working with an agent, you can expect higher premiums due to agent’s commissions. You can look into the Internet for “no-load” or “low-load” policies, which offer cheaper premiums.

  • Buy while you’re young and healthy.

    Don’t put off buying life assurance until later. When you can, buy when you are healthy. If budget is a problem, you can consider getting a convertible life assurance policy, where you start out with term life assurance cover and can convert the policy into another type of cover later on.

  • Get into a health program.

    Be fit and save on premiums. Perhaps, you fear that indicators of diabetes, high blood pressure and heart disease that can be seen in you will adversely affect your premiums. It will. So, get healthy! Work to get your weight down. Also quit smoking. Smoking will raise your premiums considerably. However, if you are a smoker, it may take some months or years of smoking before you are considered a non-smoker. It also helps to show how you are managing high blood pressure and blood sugar with diet, exercise and regular medication.

  • Ask for a reevaluation of the premiums when there are improvements in your health.

    If you already have been issued substandard premium ratings, you can work to improve your premiums when your health improves. You should be able to show the insurance company how you’ve worked to lower your weight, cholesterol or blood pressure.

  • Make sure you get the right amount of life assurance.

    You may actually be getting more than you really need. Study your family’s financial situation. What portion of your income should be replaced when you die? Do you have some savings and assets to help out?

Remember, life assurance is a long term concern and a little bit of savings on premiums per year will go a long way.

To protect your loved ones for less, fill the form on the right to get your life insurance quote.