Reduce life insurance premium costsRiders, 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.
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