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How to save money with your life insurance policy?
How to save money with your life insurance policy?

Life is a bundle of grievous uncertainties. The sheer unpredictability of what might transpire in the next moment is sufficient to cause severe physical, mental and financial distress. Under such testing circumstances, most people prefer to seek the protection of savings instruments which can render a semblance of both, stability and security. This is precisely why investing in a good life insurance policy has steadily begun to turn into a highly important need. 

As an investment, the concept of life insurance is known to offer multiple lucrative avenues. Not only can it be used as a vehicle to gain assured death benefits, but it can also be employed as a tool to avail emergency loans at low interest rates. However, before you decide to purchase a life insurance policy that meets all your specific needs and requirements, it is always considered wise to adopt a well-researched and thoroughly calibrated approach. 

Here are a few ways that can help you save money with your life insurance policy in a completely hassle-free, prudent, and effective manner:

Buy Early

The earlier you purchase a life insurance policy, the higher will be the amount that you can save. This is primarily because younger policyholders are  more likely to be healthier, while the probability of an older person developing health complications is much higher. This is why premiums are lower when you are young and healthy. Therefore, make sure that you buy a decent life insurance policy as soon as you start earning. 

Stay Healthy

Health is one of the most important components which determine how inexpensive a life insurance policy would be. If you are suffering from a chronic disease or a critical ailment, the rate of premium charged from you would be commensurate to the prospective treatment costs. On the other hand, if you are medically fit, the premium you would have to pay will be much lower and thus, affordable. This is why maintaining good health is largely recommended as the best strategy to save money with a life insurance policy

Choose Wisely

Do not select a life insurance policy term on the basis of irrelevant considerations. Instead, choose a tenure which operates in accordance with your short-term and long-term financial objectives. For example, if you are buying an insurance policy for your two-year old child, it would be better to purchase a plan that lasts for 18 years, i.e., until he/she attains majority. Investing in a plan that lasts for 30 years would make no sense in this case. It would only end up imposing an extra financial burden arising due to higher cover costs. 

Stop Smoking

Smoking is an extremely dangerous addiction which isn't just injurious to health, but is also the cause of many deep-rooted diseases. This is why it comes as no surprise that most insurers increase the costs of purchasing a life insurance policy for those who have a smoking habit. Let us understand this with the help of an example. A non-smoker who has purchased a term insurance with a cover of Rs. 1 crore for 30 years, would only have to pay a premium amounting up to Rs. 9,200 annually. However, a smoker who has the same life insurance policy would have to shell out a massive premium of Rs. 13,500 every year! 

Pay Annually 

A life insurance policy can generally be paid for in a variety of different ways. You can either opt for monthly and quarterly premium payments or you can select the semi-annual or yearly mode of payments. Nonetheless, paying annually has a multitude of benefits in comparison to paying via the other routes. This is because annual payments have low maintenance costs and thereby, they tend to incur lesser charges. For example, a 50 lakh life insurance policy that lasts for 30 years would ideally require you to pay an amount of Rs. 4,200 annually. But, if you choose to make monthly payments, the same amount would be increased to Rs. 400 per month or Rs. 4,800 per year! 

Reduce Riders

Each life insurance policy comes with a number of additional riders. These riders have been craftily devised to add value to your plan, while catering to any specific needs which might arise in the course of the policy's run. Nevertheless, before you add such riders to your life insurance policy, you must determine if you require them in the first place. The addition of a rider doesn't just raise the price of premiums, but it also increases the overall cost of policy management. As a result, you start etching out money for benefits that you might not even need! Reducing riders that constitute the frills of a life insurance policy is therefore, a good choice. 

Purchase Online

A life insurance policy which has been purchased online is about 10% to 20% cheaper than a life insurance policy that has been bought through an agent or a broker. This price distinction is simply a result of the fact that while making online purchases, you get to deal directly with the insurance company itself! As no third parties are involved, the cost of policy maintenance and management automatically becomes lower. Moreover, online purchases also help you make detailed comparisons amidst different life insurance policies and thereby, enable you to pick the one, which best fulfils your purpose. 

The Way Forward

If you, too, are looking for a credible and sustainable way to save money with your life insurance policy, seeking assistance from online platforms like Coverfox.com might prove to be a good idea in the longer run. With their time-tested strategies, they would equip you to make thorough comparisons between different insurance policies so that you can choose the ones that are affordable and efficient. More so, they would also assist you with their unbiased advice and exceptional experience so that you can take well-considered and prudent investment decisions. 

A life insurance policy makes sure that you consistently remain protected against any sort of physical or financial harm. Nonetheless, before you embark on this rough terrain, you must weigh in all the possible factors and purchase a life insurance policy that is customised, hassle-free, and secure. After all, a life cover is not just a one-time investment. It is a perennial umbrella that guards you against life's numerous uncertainties. 

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