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Paying a higher life insurance premium? Factors that can save you money!

Insurance

We do everything we can to make our loved ones happy. So, while planning for their future, there are many things you can do that would make their life comfortable even if you are not around but amidst those options, getting term insurance for housewife or for yourself is a favourable option. With proper life insurance coverage by your side, you will be able to safeguard your family’s financial security if unfortunately, you pass away. 

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Do you know there are various factors that influence life insurance premiums? If you are planning to purchase term insurance, it is highly recommended that you don’t pick the first one that comes your way but compare it with other insurance companies by using the term insurance calculator to ultimately pick the one that offers the higher sum assured with reasonable premiums. At the same time, you also need to know how to lower the term insurance premium in order to save the money.

Factors that can influence the cost of your term insurance policy

  1. Age: The age of the policyholder is one of the main factors affecting the premium for term insurance for housewife. Young people in their 20s and 30s are less likely to suffer from critical illnesses and are more likely to stick with the coverage for the foreseeable future, according to the insurer. As a result, it reduces their liability. One can use a term insurance calculator to see how much you need to pay and how much older individuals would have to pay if they are buying the policy. 
  2. Family History: Certain hereditary disorders tend to pass down to subsequent generations of a family. Similarly, similar lifestyle choices may make members of a family more susceptible to specific diseases. All life insurance firms assess these risks as part of the family’s medical history before offering life insurance policies at predetermined prices. If you are aware of your family’s medical history and nobody is suffering from any critical disease, it can work for you in getting term insurance for houswife at lower prices and same can be calculated using term insurance calculator.
  3. Medical Records: The medical history of the individual plays an important role in determining the premium you will get. For the same, most life insurance plans require medical tests as part of the underwriting process to determine your health status. These tests are intended to provide a clear picture of your health and any pre-existing disorders. Therefore, it is highly recommended that you take your health into account before you apply for insurance. 
  4. Gender: Although it is one of the lesser-known factors impacting life insurance premiums, it is indeed important. Its significance is based on statistical facts that show that women have a longer life expectancy than men. It also qualifies them for a longer policy duration. You can use an online term insurance calculator to know the difference in life insurance premiums between term insurance for housewife and men and women.
  5. Smoking Habits: Tobacco use, whether consumed or smoked, increases the risk of developing critical diseases such as lung cancer, mouth cancer, and heart difficulties. The impact of these habits is the same in both men and women. Smokers pay a higher premium for life insurance because they are more likely to experience health difficulties. Before you submit the application for term insurance, it is highly recommended that you start a healthy lifestyle where you are not smoking. 
  6. Premium Payment Tenure: Term insurance premiums are also determined by the duration of a life insurance policy the policyholder is choosing. Choosing a longer tenure spreads the risk over a longer term, allowing insurers to sell policies at a lower premium. One method for lowering term insurance premiums is to select a longer premium payment period. 

Few ways you can reduce the life insurance premium

One must remember that life insurance is an investment for your family. You must choose the correct policy in such a way that it does not impose any financial stress.

  1. Select an Adequate Sum Assured: After selecting the right term insurance policy, the next important step is to choose the appropriate sum assured. The entire goal of purchasing term insurance is fulfilled when you choose adequate life coverage. Many people misunderstand this point and select the random sum assured, which might not be adequate for your family in your absence. 
  2. Purchase term insurance at a young age: Many people wait until the appropriate time or age to invest in a term plan to obtain life insurance. As a result, individuals must pay a larger premium, which would have been less had they purchased it when they were younger. The same can be said by using the term insurance calculator, and one can learn how to take advantage of buying at a young age. Purchasing a term plan during your first few years of employment is the most effective approach to reducing your premium. The younger you are, the lesser the premium you will end up paying.
  3. Compare policies before purchasing one: This is another strategy to lower your term insurance premiums, although it is often overlooked. Some people purchase a term plan based on advertisements or recommendations from peers without first determining their actual needs. Comparing term insurance coverage will help you figure out which plan best meets your needs. If affordability is a problem, you can compare the advantages of several plans to the quoted premium. After reviewing the specifics of various plans, you will be better able to lower your term insurance rate. 

 

At last,

One needs to understand that with term insurance for housewife or for any other individual for that matter, paying premiums on a regular basis or at the frequency written on the policy document is important to keep the policy active. 

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