Life insurance policy has great importance in the life of any person. The premium of a life insurance policy depends on the health of the policyholder, place of residence, habits and nature of business. Experts say that insurance companies decide the premium considering all these points.
However, there are many reasons that serve to increase the burden of insurance premiums. This happens because of not having the right information before taking the policy. We are giving five such reasons, by following which you can reduce the premium of your policy.
1. Buy life insurance at an early age
If you want to pay a lower premium then it would be better to buy the policy at a young age. Buying a policy at the age of 28 to 30 is considered the best. Insurance companies provide policies at a lower premium to the youth. This is due to a very low risk of illness or other risk in young people. As age increases, insurance companies charge higher premiums as the risk increases on the insured.
2. Better decision to take a term policy
The easiest way to get big coverage at a low premium is to buy a term plan. You can buy a term plan according to your needs. Later in the term plan, treatment of critical illness and can include another rider. According to insurance experts, a 35-year-old man should take a cover of 10 to 15 times of his annual income. However, in term insurance you do not get anything on maturity. Some term insurance has maturity, so it is quite expensive.
3. Choose a good policy
The CEO of PolicyX.com, Naval Goyal said that it is very important to choose the right policy, not just the duration of the policy. The term of a life insurance policy should never be shortened. This is because if the policy ends before the financial obligation is fulfilled, then you may be in trouble. The term of the same policy should not be too long as it will increase the burden of premium on you.
4. Compare plans before purchasing
Never choose insurance policy blindly. Before purchasing the policy, compare its premium, claim settlement ratio, total cover amount and facilities available with other policies. You can also do this work online. There are many websites which are providing this facility. With this, you can also choose the right policy by collecting information from the agent of the insurance company.
5. Do not buy unnecessary riders
When you go to get life insurance, companies offer you a variety of riders at affordable prices. These days companies are providing many riders with term plans. However, never buy a rider without need. Before taking any rider, see if you really need it. Unnecessary riders work to increase the premium burden.