It is not possible to negotiate the basic premium rates offered by insurance companies. Using a little common sense and initiative you can however save your self some money and so make life insurance more affordable.
Life insurance rates are based on several factors – your age, health history (including family history), and lifestyle are the primary factors. Keeping the following points in mind, you can surely reduce the costs incurred on premiums.
Annual Mode of Premium Payment
Choosing the annual mode of payment reduces the premium cost. Insurance companies add extra charges to cover additional costs incurred by them if you pay multiple premium rather of single yearly premium. These additional charges increase insurance cost thus ultimately increasing your premium amount.
The premium of the insurance plans increases with age. At a young age, you are medically fit and physically sound. This helps in reducing the insurance cost and in turn reduces your premium amount.
Longer Policy Term
The longer the term of the policy, lower will be the premium. Longer duration polices allow you to build the required corpus with smaller premiums.
Do not take riders that you do not need
Additional benefits on policies come with additional charges and increase your cost of premium. You can lower premium costs by opting only for those riders that you actually need.
Keep yourself healthy
Health related issues, Disability problems, Smoking and drinking habits, risky lifestyle all add to the insurance cost thus increasing insurance premium. Keep yourself healthy and fit to get the benefit of lower insurance premiums.