A life insurance cover helps you secure the financial future of everyone dependent on your income in the event of your death. Nobody can help overcome the loss of a dear one, but imagine that along with this loss the surviving members of the family are hard-pressed to maintain their lifestyles because they were partially or fully dependent on the income of the deceased. Getting an adequate life cover is absolutely essential if the sum of the total value of your assets (other than the home you stay in) less your total liabilities (including any home loan, car loan or personal loan you might have outstanding) is less than 150 times your current monthly expenses. The shortfall would be the recommended amount of life cover you should seek. At ApnaPaisa, we help you reach out to a maximum of 5 service providers who will propose alternative plans that you can compare based on:

Life Cover (also known as Sum Assured)
Annual Premium
Additional Riders Offered

Often customers get lured into combining their life cover requirements with an investment objective. We do not recommend this approach because it is always a lot more affordable to opt for a term insurance policy and invest the savings on the annual premium into any savings instrument of your choice - be it PPF, Fixed Deposits, Mutual Funds or even shares.

Reduce life insurance premium costs

Riders, additional benefits add to your life insurance costs. Get the purest insurance form of insurance at the cheapest.

Apnainsurance Research Bureau

21 Dec 2007

The basic premium rate offered by an insurance company is not negotiable.

However, life insurance cost could be lowered if you:

Select a term plan that offers you no money in case you survive the term of the policy. This is the purest form of life insurance. It provides your family with viable income but offers no benefit on survival.
Increase the period of your insurance. If you want to purchase an endowment plan or a Unit-Linked Insurance Plan (ULIP), increase the term of your insurance policy. Note however that this idea will not work for a pure term plan - longer terms mean higher risks and therefore higher premiums.
Offer to pay premiums annually. The more premiums you pay in a year, the higher will be your premium costs towards the policy.
Do not purchase riders or additional benefits that do not add value to your insurance needs.
Last but not the least - compare plans across insurers before you make a decision.