3 Ways to Reduce Your Life Insurance Premium

22-June-2021 |

As the primary provider of your family, your family’s financial responsibility could become a burden. This is when you need to protect your family’s financial future. If something were to happen to you, you must ensure that their lifestyle remains unaffected when you stop earning. Financial protection becomes of the utmost importance at this point.


Life insurance is a great financial tool that allows you to safeguard your family’s future even in the most unfortunate situations. Though most people understand the importance of life insurance, many Indians still do not consider it a priority. For most people, it is a costly affair as there may not be a return. If you, too, are concerned about the price of an insurance policy and are not investing in one because the premium is high, read on.


Factors that determine life insurance premiums

Many factors can affect your life insurance premium. Though you may tweak specific parameters, many are beyond your control. These include:

         1. The age at which you buy Insurance

              Buying insurance later in life, such as in your late 30s and 40s, can be heavy on the pocket.
              Younger people are comparatively healthier. With age, the mortality risk increases. There is
              a particular entry age for term plans. If you buy a policy at an older age, you can opt for a
              decreasing life insurance policy and lower the term insurance premiums.
              Tata AIA Life Insurance’s term insurance gives you many tailor-made life insurance


         2. Genetic Factors

             Most life insurance companies ask you about your family medical history before accepting
             your life/term insurance application. Sometimes, it may so happen that you are genetically
             more susceptible to certain critical illnesses, such as heart issues, diabetes, cancer, etc.
             You may have to pay a higher premium for the plan you opt for in such cases.


              Remember: Do not withhold details of your health conditions from the insurance company.
              Any misinformation can lead to claim rejection later.


         3. Gender

             Statistics show that women generally live longer than men, and so the gender of the
             prospect becomes an essential factor in determining the life insurance premium.
             Therefore, women need to pay a lower premium for a term insurance plan.


Premium reduction:


If you have certain reservations about buying life insurance because of its cost, there is good news for you. Certain tips can help you keep the insurance premium within your budget without compromising on the coverage. If you can put these tips and tricks into practice, you will be able to find the most affordable plan, best suited to your needs.


Top 3 tips to lower your life insurance premium:


Most life insurance plans are considered to be relatively affordable protection options. However, there are some factors that an insurance company takes into account before determining your premium. Given below are three ways to reduce your life insurance premium:


1. Start Early


The premium is the lowest when you start early. A life insurance premium is fixed once the policy is issued. So, even with age, your premium does not increase.

You are healthier in your 20s and early 30s than you may be in your 40s and 50s. You are physically fit and mentally sound. This is when applying for a life insurance plan makes the most sense. With age, your premium would also increase.

2. Explore Online Options

Online insurance plans are usually more affordable than offline ones as the distribution and administrative costs are lower. So, buying a term plan online will surely be cheaper than buying it offline.

Another benefit of buying an online term plan is that you get to explore and compare all is that you get to explore and compare all the options you have. Tata AIA Life Insurance’s term insurance plans offer many choices in online plans. You can compare insurance plans on the company website and select a plan that suits your insurance needs. With a user-friendly portal, TATA AIA Life Insurance also makes buying insurance plans easy and hassle-free.

Tip: When exploring term plans online, make sure you go through the various available add-ons. They would add to the premium but can help enhance the coverage of the base policy.


3. Follow a Healthy Lifestyle

The best way to be prepared for tomorrow is to start working today. Following a healthy lifestyle has more than just health benefits. You can also save your insurance premium. Follows these simple rules:

                  a.  Avoid smoking and drinking.

                  b.  Exercise regularly and stay active.

                  c.  Eat a balanced diet.

                  d.  Avoid being too stressed and anxious.

                  e.  Keep a positive attitude.

Tip: Insurance companies incentivize a healthy lifestyle with discounts and vouchers. Premium is also lower for non-smokers and healthier individuals. Hence, practicing a healthy lifestyle will improve your life and health and help you save on premiums.

The Final Word

It is also essential to keep in mind that a cheap life insurance policy may not always be the best. The death benefit that you opt for will directly influence the premium. A lower premium means a lower death benefit. You must bear in mind that the sum assured you leave for your family should be enough for them later. An inadequate amount may not help them in the long run. It is highly recommended that you assess your liabilities and finalize your insurance plan.

It may not always be possible to negotiate the term insurance premium with an insurance company. However, if you keep the points mentioned above in mind, you can reduce the premium charges and select the most suitable insurance plan.



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  • The products are underwritten by Tata AIA Life Insurance Company Ltd.

  • The plans are not a guaranteed issuance plan, and it will be subject to Company’s underwriting and acceptance.

  • For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale.

  • This blog is for information and illustrative purposes only and does not purport to any financial or investment services and do not offer or form part of any offer or recommendation. The information is not and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.

  • Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company.

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