Monday, 1 April 2013

Ways to reduce the cost of term insurance



Buying insurance is an important step to secure your family’s financial well being. While you decide on a suitable insurance policy, it is wise to consider a few ways to minimise the cost of the insurance without compromising on the coverage and benefits. Read on to know how…

Buy insurance online
Generally, buying an insurance policy online is more cost attractive than buying the same policy through an insurance agent or by visiting the company office. By selling insurance online, insurance companies save on costs such as commission, administration expenses, etc. These cost benefits are passed on in the form of lower insurance charges to those availing insurance online. 

Avail insurance from an early age
Usually, amidst other considerations, buying life or medical insurance at an early age translates into lower premium outflows. Insurance premiums increase as the life expectancy of the person decreases. As one advances in age, the health risks increase and life expectancy reduces, thereby, leading to higher risks for the insurer. Higher risks translate into higher premiums. Therefore, it is wise to avail life and health insurance at a younger age.

Opt for a Long Term Insurance Plan
Insurance premiums tend to increase at an advanced age. Therefore, by opting for a long term insurance plan, you can enjoy extended coverage at a lower cost.

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