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Tips of reducing your life insurance premium


What is term plan? A premium is the monthly amount that is paid by an insured individual to the insurance company depending on the type of insurance cover provided. Premiums differ from one type of insurance to the other.


Most people are afraid to take life insurance cover because of the relatively high quotes required by most insurance companies. Before a premium is determined, the insurance company has to assess the individual for health issues before setting a term insurance premium amount to be paid. Individuals can reduce the amount of premium, they are paying by avoiding certain behaviors or habits and doing others that make them healthy. Premiums for life insurance Canada recipients differ for each individual depending on their physical health.


The first tip of reducing the premium you pay is by quitting smoking for those who are smokers. Smokers are prone to lung diseases while non smokers are prone to live longer. Insurance companies would not like to insure someone who is prone to die within the term he is insured for. A non smoker may likely live longer and therefore the insurance company will have more years to collect his term insurance premium payments before having to possible pay out on the policy when you die. The quotes for a smoker and a non smoker will also differ. Another tip is to lose weight. Weight loss leads to lower cholesterol levels, lower blood pressure and low risk of developing chronic diseases such as diabetes.


Another tip of reducing the premium you pay is reducing or eliminating alcohol intake. Drinking can pose a health risk such as liver cirrhosis. Companies will check your application, driving record and medical exam to get a grasp of your drinking habits before giving you the insurance quotes. Drinking less alcohol or stopping completely makes you as an insured individual less risky to the company. This means that the company will reward you with a lower term insurance premium. The term life insurance Canada premiums are relatively affordable than permanent ones but can be even more affordable if you are healthy. Individual should therefore be smart enough to ensure that they are in great health before applying for a term life insurance or any other form of life insurance.


Another tip is improving your driving. Reckless driving puts an insured individual under high risks of getting an accident and dying or being permanently injured. Insurance companies will be at risk to pay for the death benefit of such people within the period covered. Such individuals always receive very high quotes for their premiums. Insurance companies will assess the driving records of an individual before setting a premium to be paid. Other companies such as life insurance Canada companies may go a step further to give the individual a driving test.


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Source: http://articles.abilogic.com/60698/tipsreducing-your-life-insurance.html


Tips of reducing your life insurance premium