12 Best Tips For Cheapest Life Insurance Premiums - Ratinah

Cheapest Life Insurance Premiums - Not just any protection product, the best cheap life insurance has good benefits to minimize a person's financial loss and even family. No need to be expensive, you and your family can choose cheap life insurance products, but still with maximum protection.

12 Best Tips For Cheapest Life Insurance Premiums - Ratinah

The assumption that insurance premiums are definitely expensive is the reason why many people do not have insurance. Therefore, you wait and wait for the most appropriate time to start using insurance services. Things like this are not only experienced by you. Most people also experience the same thing.

Don't let it continue. Some of the tips below can be done to get cheap and affordable insurance premiums.

1. Consider an income policy instead of a lump sum

Most people know that life cover pays out a lump sum if you die. But far less know that you can buy cover that pays a regular tax free income instead of a lump sum. It’s official name is Family Income Benefit and is often cheaper than the more common Level Term lump sum payout option. So why would an income be better than a lump sum?

Many people who take out a life insurance policy simply want to provide an income for their family to replace the earnings lost if they died prematurely. But many policies are bought with a lump sum benefit requiring the surviving family to find a suitable savings or investment vehicle to generate an ongoing income. In addition, the interest generated from a lump sum is taxable whereas the income from a family income benefit policy is paid tax free.

For many people not used to managing large amounts of money, suddenly having to find the right savings account or investment can prove an additional burden at an already distressing time. This is where Family Income Benefit can offer the best of both worlds.

2. Consider a reducing policy for mortgage life cover

One of the most common reasons for needing life insurance is to protect a mortgage loan. The type of mortgage you have will largely dictate what form of life insurance you need but this is often one of two types of term life insurance.

If you have an interest only mortgage then you will need level cover as the mortgage debt will remain constant unless you increase or reduce the mortgage loan. However, those with a capital and interest mortgage can opt for a decreasing term policy where the cover reduces in line with the reducing mortgage loan. As the cover reduces over time so does the risk to the insurance company making this type of life insurance cheaper than the level term option.

So if you have a capital and interest mortgage with a level term life insurance policy and only need to cover the mortgage amount, you could save money by switching to a reducing policy. The downside to this is that you will lose any surplus cover provided by a level policy as the mortgage loan reduces but the level insurance benefit stays the same.

3. Stop smoking

All insurance is based on risk and so to cut the cost you have to cut the risk. With life insurance, the risk is based upon your chances of dieing whilst the policy is in force. Insurers measure the risk by assessing your health and medical history.

Anything that increases your risk of dieing prematurely will increase your premiums. These risk factors can include your current state of health, family history, hazardous occupation or hobbies but most commonly being a smoker has the greatest impact.

Now, I know you’re not going to stop smoking to save money on your life insurance but its one more reason in a long list to quit. Not only will you save money on the cigarettes but you can also add a saving of around 40% on your life cover premiums too.

4. Shop around

Life insurance is a very competitive market and prices can vary widely depending upon where you look. The easiest way to compare lots of insurers and policies at once is to use one of the many free online comparison websites. The only caveat to this is to be aware that these sites only compare premiums and not cover, so have a firm idea of what type of cover you need first. This will help you to compare like with like and discover the true bargains.

Alternatively, you can use an insurance broker to do the shopping for you and this route can yield some substantial savings if you use a particular type of insurance broker.

5. Use a discount life insurance broker

If you know which type of cover you need and don’t require any advice, a discount online insurance broker can save you hundreds of pounds in lower premiums.

Due to the low costs and large audiences available via the internet, many life insurance brokers have launched websites offering life insurance quotes with major insurers at discounted premium rates. These brokers are able to discount cover from major insurers by rebating much of the commission they receive from these insurers to reduce your premiums.

Savings vary but can mean genuine reductions of between 10% and as much as 40% over the insurance company’s standard premiums. Many sites provide instant online quotes comparing multiple policies from leading insurance companies.

A simple Google search for discount life insurance will provide a list of most brokers or use an insurance directory like UK Insurance Index which also features customer reviews.

6. Mandatory pure life insurance

Why? Because this type of insurance has been proven to have the lowest and cheapest premiums. Even though it's cheap, the protection money is big enough.

So, the benefits that you can get are very maximum. Moreover, when viewed in detail, this insurance has no investment benefits so that all premium funds paid have their own protection.

7. Have it early

Age affects the amount of insurance premiums that you will get when you buy insurance products. The younger you are, the cheaper the premium that must be paid to the insurance company.

To be motivated, always place the risk of death as something that can never be predicted. That way, you realize that the presence of life insurance is very important.

8. Avoid riders

If you are offered a rider, don't take it. Although the goal is to provide additional benefits, it is clear that the rider will only increase the premium that must be paid.

Moreover, if it is beyond the budget you have set, the presence of a rider in the insurance package is not wise. So, make sure there is no rider in your insurance agreement with the provider.

9. Minimum minimum premium

Sometimes, with the benefits you get, you are willing to pay a higher premium. In fact, every insurance company has a minimum premium with benefits that are not much different,

So, make sure you choose the lowest minimum premium so that the scheduled premium payment doesn't burden you.

10. Avoid whole life insurance

It has often been proven that whole life insurance is a form of waste. So, if you want to buy cheap insurance premiums, avoid whole life insurance.

Because basically, you need life insurance until you are 70 years old at the longest. After that age, you don't need it anymore.

11. If you don't want to be alone, choose family insurance

Currently, several insurance companies also have family insurance products. This type of insurance will be very appropriate for those of you who intend to buy insurance for you personally and at the same time for other family members (your spouse and children).

In this insurance service, you will not be charged a separate premium between one family member and another. The insurance company will only issue one policy for all family members. Purchasing this policy at the same time (one policy) will help you save money. Because the price is much cheaper than using a separate (own) policy.

12. Utilize Health Insurance Product Refund System

Health insurance has two ways to return hospitalization costs during the claim process, namely the inner limit and according to the bill. Here is the explanation:

  • The inner limit is where the maximum limit will be determined by the insurer
  • According to the limit, the insurer will replace whatever the billing fee is as long as the annual limit is still available

Take advantage of these two ways to get cheap insurance premium costs, meaning that the refund can be accumulated in the premiums that you will pay.

The purpose of taking life insurance is to protect the family financially from the risk of the head of the family experiencing a disaster, for example death, which results in the loss of a source of income.

Know Well Before Buying

Insurance doesn't always have to be expensive. If you are careful and thorough, you will find cheap insurance with adequate protection. Adjust your needs with the type of insurance you will buy.

Do not forget to look at the amount of premium that must be paid. Make sure you buy the most appropriate insurance with a number of affordable premiums so that the functions and benefits are maximized.

That's 12 Best Tips For Cheaper Life Insurance Premiums - Ratinah

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