There are several ways to bring down the cost of monthly insurance premiums without sacrificing your financial security. Buy when you’re young, live a healthy life, consider a joint policy or consider cutting the term and level of cover. Also be prepared to shop around, comparing quotes from various insurers, before settling on an insurance package.
By taking out life cover when you’re young, you are eligible for cheaper monthly premiums because of your long life expectancy and relative good health. Young people also have a better chance of improving their health by changing their lifestyle. It’s never too early to consider buying insurance. Joint policies can also provide cheaper insurance cover. Taking out a policy together with your spouse or business partner, ensures the same lump sum pay-out payable upon first death for cheaper monthly premiums.
Healthy living is critical to cheaper insurance cover. Quit smoking, cut back on alcohol consumption, lose weight and get plenty of exercise. Smokers, heavy drinkers and those who are obese automatically fall into high risk categories, pushing up your monthly premiums. Certain bad habits may also compromise your eligibility for critical illness cover. Don’t ever lie about your state of health as this can be considered fraudulent, which may result in the insurer refusing to make any payments.
Consider term insurance rather than whole life cover. The longer the term and larger the insurance sum, the more expensive the monthly premiums will be. By decreasing the length of cover and the final sum, you reduce your monthly premiums making the financial security provided by life insurance more affordable. Be sure to review your policy regularly as changing circumstances may require a change in policy. Make sure your policy is flexible before signing up for cover you can’t change.