How To Lower Your Insurance Premium

How To Lower Your Insurance Premium

It is rightly said, “Buy insurance policy and secure your future”, but nowhere it’s mentioned that buying a policy might make you lose your peace of mind. The hefty premiums can dis-balance your monthly budget, hence, before buying an insurance policy make sure that you are well aware of terms and conditions and whether the policy has taxable benefits.

Is life insurance a taxable benefit?

No doubt, it depends on an insurance company to give you the information about your premium amount, but your health and fitness plays an important role.

Insurance policies are basically categorized under High Risk and Low Risk. In High Risk policy you pay higher premium, whereas, the premium gets lower in Low Risk.

Well, there are certain ways to lower you insurance cost –

  1. Maintain a healthy lifestyle

Do you smoke or drink? Are you overweight? Do you have any health issues? Suffering with obesity? These are few questions an insurance company will ask and rate you accordingly with what premium to be paid, before giving you the policy. So, if you are not maintain a healthy lifestyle, start now to lower down your premium cost.

  1. Age Factor

The older you are, the higher premium rates you get. Better apply for a policy when you are young, fit and healthy as you never know when life takes an about turn. But, don’t forget to choose between multiple investment funds with systemic investment plan to secure your future.

  1. Opt for Term Life Policy

The policy which provides you with best coverage amount when required, despite being less expensive than other policies. You can opt for small amount which gives you a small premium.

  1. Higher Benefits Policy

Like anything else, life insurance policy is also a necessity in today’s time. So, while buying a policy make sure to choose high benefits as it will lower the cost. Plus you will also get more coverage in less money.

  1. Joint Policy

A policy where two people are insured under one and gets befits are paid when the first partner dies. The coverage is also same for both the partners. More flexible and less expensive than single policy.

  1. Bundle your all Policies with Life Insurance

Try to buy a bundled policy which can have life insurance, home security, children’s education fund etc. This is the easiest way to reduce your insurance cost

  1. Market Research

Don’t forget to compare price before buying the policy. Seek guidance, take suggestions from financial experts, browse options and then decide the policy according to your budget and need.

  1. Taxable Benefit

Also, make sure to check if your life insurance giving you a taxable benefit. Under Section 10 (D) of the Income Tax Act, you also become eligible and can expect tax savings with your insurance policies. The maximum tax deduction of R. 1.5 lakh is the eligibility criteria as per Section 80 (C)

Not only this you premium also depends on the insurers underwriting method and rating. Hence, it’s necessary to check company parameters like, market reputation, settlement timeline, policy coverage, life insurance giving you a taxable benefit, customer service etc. before you buy policy.

So, what are you waiting for? Get up, browse and secure your and your loved ones lives.