Regular premium payment is the most recommended mode, whether it is paying monthly, quarterly, half-yearly or yearly.
The earlier you opt for a life insurance
policy, the lower will be your premium. Besides lower cost, there will be lesser chances of rejection. “The moment you are financially independent and have dependants, it becomes crucial to have life insurance.
Buying life insurance
at a lower age leads to the benefit of a lower premium and it stays the same throughout the policy tenure,” says Rakesh Goyal, director, Probus Insurance Broker.
Choose riders wisely: Check with the insurer whether riders are attached to the policy. There can be riders that may not be of use to you but are added to your policy. The additional cost of these riders increases your premium amount unnecessarily. For example, many policies have in-built riders such as waiver of premium, critical illness, terminal illness, and so on. “Check term plans for whether they have in-built riders. Having riders is a wise choice. But opt only for those that you require, or those that are related to your lifestyle or profession. For instance, one can opt for an accidental death benefit rider if you commute daily by bike or car,” says Goyal.
Maintain a healthy lifestyle:
The healthier you are, the lower will be the premium charged by the insurer. Insurers give utmost attention to the policy seeker’s medical history while approving a life insurance
cover. “Life insurance
companies want to insure healthy people who are at low risk of passing away early. Insurers may require a medical test and access to your health records before issuing a policy. A history of health conditions, especially serious illnesses such as heart disease, will increase your premium,” says Goel.
Goyal further points out that difference in premium paid by a smoker and a non-smoker can be huge. “Being a non-smoker can reduce the premium by 50 per cent. The premium for a 25-year-old non-smoking individual buying a 40-year plain vanilla term plan of Rs 50 lakh will be in the range of Rs 3,000-5,500. For a smoker, the same plan will cost Rs 5,000-9,000,” he adds.