Insurance is an important financial tool that allows individuals to secure their futures. Since it encourages you to plan your financial future, you can meticulously prepare for life’s uncertainties.
From health insurance, life policy, business insurance, to auto insurance, the products are varied in terms of their offerings and benefits and must be carefully selected on the basis your needs. A good knowledge of income tax slab enables the policy holder to avail tax exemption benefits of these plans
When it comes to availing of life insurance plans, you must compare policies and evaluate the benefits of each policy in order to enjoy sufficient coverage. Following are six ways you can save money while acquiring a life cover.
You should ideally use the Human Life Value (HLV) calculator to determine the ideal amount of your life insurance returns. Underinsuring would mean that in the case of your disability or death, your family will have to bear an additional fiscal crunch. On the other hand, unnecessary policy additions would just require you to spend an excessive amount of money on non-crucial aspects which make a financially unwise decision.
- Pay regular premiums
Insurance premiums are generally to be paid on an annual basis. However, you may select the premium payment term based on your cash flow. Once you narrow down your policy options, inquire regarding the fees. This may help you avoid penalty charges and other additional charges. Certain insurers may offer flexible options regarding the frequency of the premium payments and therefore, you should ask regarding the same.
Generally, you can save money by making fewer payments throughout the year. Some insurers may even allow you to directly transfer money from your bank accounts in order to pay the premium on your life insurance policy on time.
- Improve your lifestyle
Certain policies may require you to pay higher premiums in the case of pre-existing conditions or habits. Smoking, excessive drinking, and obesity are some of the examples wherein you would have to comply with higher rates. Moreover, if you are overweight or obese you would be charged with higher rates.
Certain pre-existing medical conditions may also contribute to the increase in the cost of life insurance policies. Therefore, it is essential that you not only improve your lifestyle in order to be fit but also ensure you can avail of life plans at affordable rates. Certain insurers may withdraw the additional amount levied due to a specific health condition if you can prove that your health has improved considerably since a year.
- Invest in financially sound insurance companies
Even though there is a plethora of options available for you, you must be careful while selecting in order to make the right decision. It is vital that you remain cautious while surveying your policy options and do not fall prey to the apparently lucrative deals offered by insurers which are not reliable.
It is always beneficial to avail of a life insurance plan from a company that enjoys good standing in the market and has a user base of satisfied customers. The lowered premiums offered by certain insurers should not solely guide your decision as they could be deceitful and therefore must be avoided.
- Purchase insurance at a young age
When acquired at a young age, insurance premiums are not only lower but also may result in a long-term financial gain. Since you are less likely to suffer from ailments and disorders during your early years, insurers allow you to opt for policies which provide extensive coverage at substantially lower rates.
Industry experts always recommend availing of insurance policies at an early age since you not only get an understanding in terms of financial planning but also end up saving money in the long run.