Know Tips for Massive Savings on Life Insurance

Who doesn’t love to get discounts and save up while shopping? Well, this is possible for life insurance plans, too. By following our insider tips and utilising them while purchasing insurance, you can avail an affordable premium. Though the premium rate depends on various factors, there is a way to reduce the expenses significantly. So, to find out how you can do this, continue reading below.

Opt for insurance early in life

As a young individual, you are bound to get an affordable premium quote for a plan, which is expensive for a middle-aged individual. Why so? Insurance providers view you as healthy having no medical issues because you are young. Usually, ailments start showing up as we grow older, and our eating habits start taking a toll on our health. But in your early twenties, you probably won’t be suffering from high cholesterol or diabetes. Thus, you can avail a lower premium rate. To reap the benefits of this opportunity, it is recommended to opt for life insurance early in life when it’s cost-effective.

Know your insurance requirements

There are numerous types of life insurance policies available in the market. Which one should you pick? This completely depends on the reason for purchasing an insurance plan. If you want to safeguard your family with a high death benefit in the event of an untoward incident, a term plan is for you. However, if you are aiming for wealth creation in case you survive the tenure, then you can explore other insurance options. Some popular ones are endowment plan, whole life insurance, ULIP, etc. Hence, it is crucial to know your insurance needs before jumping into the buying process.

Compare, compare & compare

Advances in technology have brought the world to your fingertips, so why not employ it to get the best plan? With the help of online insurance calculators, you can compare various insurance policies side-by-side based on several factors. Plans offered by every insurance provider is available on the same page, making it a cakewalk for you. Therefore, you can get the right plan within your budget offering lucrative features. By opting for a policy suggested by your friend or the first one that you find can be detrimental, as you aren’t getting your money’s worth. So, it is crucial to compare insurance policies.

Split your insurance plans

With the availability of many insurance companies, you can get a cost-effective insurance plan having a high sum assured of INR 1.5 crore. Instead of opting for just one life policy for a tenure of 20-25 years, you can split it into two and avail two term insurance plans. One can secure your family until your retirement age and the second can safeguard your loved ones post-retirement when you are dependent on your pension. Splitting your insurance plans enables you to gain more coverage for a more affordable rate. You can easily compare the cost of two policies with one to decide better.

Get the right sum assured amount

Sometimes you may think the coverage amount you have chosen is sufficient to cover your family. But with increased inflation and not estimating the needs of your loved ones, the sum assured may fall short. Thus, the reason for purchasing insurance can end up going in vain, as the payout isn’t enough to financially support your family.

Therefore, you must determine the correct sum assured amount. You can do it on your own or get professional help to choose the right coverage sum. Consider the daily expenses of your family, the cost of education, healthcare, debts, retirement corpus, etc. to get an estimate. Mostly you shall find people suggesting your life cover should be 15 times your current income, so choose wisely.

With the above-mentioned pointers, you can easily save up a lot on your life insurance plans. Ensure to get an insurance policy today and avoid putting it off for the last minute! However, it is recommended to go through your policy documents to know the exclusions of the plan before signing it. Make complete use of the free-look period and talk to your insurer in case of doubts.