There are a number of ways on how to lower the cost of life insurance policy. Said cost could be lowered before purchasing a life insurance or even if the insured is already covered by a life insurance plan. Take note of the following guides to lower you life insurance cost:
- Apply for an insurance policy while you are young. People mostly applies for life insurance when they are on their 30's, after getting engaged or after marriage or when they are starting their own family and raise children. Insurance companies mostly gives lower rates to younger applicants since they do not qualify as high-risks. Life insurance policies gravitate on the fact that the young lives longer than the old applicants. This means that the company will have longer period to use the premiums paid on the policies of younger insureds and it will take years before they award claims to beneficiaries.
- Always be healthy. In determining the rate for a life insurance, the health of the applicant is the most important matter to consider. If the applicant is not healthy, coping with medical problems or has a serious medical history, the rate of the insurance will generally be higher. But, if the applicant is young, keeps an active lifestyle, healthy and fit, the insurance rate will be a lot lower. Records proved that many insurance customers pay additional 25% for their life insurance policy because they are overweight. Staying healthy does not only eliminate the extra charges on your insurance fee but may also give you a discount of up to 25% of the premium.
- Stop smoking. Before applying for a life insurance policy, refrain from smoking or totally stop the habit. Standard premiums are granted to applicants who showed that they have stopped smoking for at least a year before filing the application. But, if the insurer discovers that the applicant is a habitual smoker or have smoking addiction, the standard premium could be doubled.
- Drive safely. Insurer's inspect the applicant's driving record before granting an application for insurance. An additional 15% to 25% cost could be imposed against the applicant if the insurer discovers that the applicant has a poor driving record. In worse cases, these could result to a denial of the insurance application.
All of the foregoing tips equally applies even if your presently have a life insurance policy. This is because insurance companies have the authority to adjust or increase one's premium based on health and driving records.