Life insurance is something that all of us need to protect us and our loved ones from financial loss, liabilities or instability in the case of unexpected events. However, one main concern is always the rising cost of life insurance premiums. Here are 5 tips to ensure that you are well covered at the best rate.
Do Your Research Before Committing
Just like all other buys in life, always shop and compare before committing. Do your own due diligence to understand what are the products in the market and speak to your financial advisor to find out what is the coverage you require before you commit to the product. This would help you to get the greatest coverage at the lowest price possible!
Consider Term Life Insurance
One of our top concerns is worrying about what happens to our dependants would do with the outstanding mortgage, bills or education fees if we are no longer around. Death coverage offers peace of mind as it helps to cover for our loved one's expenses should anything happens to us. Both term life and whole life policies would pay out a lump sum in the event of death. However, the cost of term life insurance is significantly lower as compared to whole life insurance because term life is purely for protection while whole life policies accumulate cash value on top of the coverage. For term life, in exchange for premiums, the insurer pays out a fixed sum of money if anything happens to the insured within the stipulated time frame. Therefore, if you are only looking at death coverage, term life would be more affordable!
Keep Yourself Fit
Maintaining a healthy lifestyle would allow yourself to be classified within the low risk band of your insurer. For instance, due to the health risks associated with smoking, insurers would be charging a higher premium for the life insurance of smokers. Other indication of future health problems i.e. High blood pressure or obesity may also increase your life insurance premiums. Therefore, keeping a clean health record would help in the reduction of life insurance premiums.
Consult a Financial Advisor
To have a lean financial portfolio, the easiest thing that you can do is to consult your financial advisor. Thee are the experts in the industry and he/she would be the best person to advise you on the most affordable policies that are in line with your coverage requirements.
Insure yourself at a young age. The premium for life insurance at a young age is only a fraction of that in the middle-age. This is because young and healthy people are associated with lower mortality risk therefore insurers will offer attractive premiums to cover for this group!