How to save money on life and non-life insurance premiums?

With the rise in healthcare costs and medical inflation, it has become difficult to afford timely and adequate healthcare services without a good health insurance policy. Because a medical emergency cannot be predicted, it is better to be prepared. Whether it is a planned or unplanned hospitalisation, medical bills can be heavy on your pocket. Therefore, it is advisable to get the best health insurance policy possible to protect your future.

Purchasing a basic health insurance cover can be made affordable by bringing down your insurance premium. Here are 2 ways by which you can lower your health insurance premium:

1. When you set out to purchase a health insurance policy, take the time to do some online research to get the best deal possible. Compare various health insurance plans across the top insurance providers in the country and choose one that best suits your medical needs. Compare the waiting period, exclusions, inclusions, coverage, policy benefits, claim process, and premium quotes of each policy.

2. Nowadays purchasing a health insurance policy online has become easy and convenient through the insurer's website using net banking. Buying insurance products online have proven to be cheaper and less time-consuming as you cut out the involvement of middlemen such as insurance agents and brokers. Thus, the insurance premium is lowered as the commission charge of an insurance agent/broker is not included in the premium cost.

In the case of motor insurance policies like four-wheeler and two-wheeler insurance plans, the insurance premium costs can be lowered by the following ways:

1. Compare the insurance premium rates of several motor insurance policies and choose one with the lowest premium and adequate coverage. Third-party motor insurance policies are the cheapest but depending on the type of vehicle you own, you may need a comprehensive insurance policy.

2. Increase the voluntary deductible limit on your car insurance policy in order to lower your insurance premium. A voluntary deductible is the sum you are required to pay in case of a claim. However, before increasing the voluntary deductible limit, check whether you can afford to make the payment at the time of a claim.

3. Installing anti-theft devices and safety equipment in your vehicle can help lower the insurance premium of your car insurance policy. Avoid installing additional gadgets/equipment like speakers and woofers in your vehicle as it will increase your car insurance premium.

4. Avoid making claims on small expenses like minor vehicle repairs. Otherwise, you will end up losing out on No-Claim Bonus (NCB). The insurance company offers NCB to policyholders for every no-claim policy year. The accumulated NCB can be used to get a discount on the insurance premium for the subsequent year. NCB increases to up to 50% with every passing year.

5. Renew your bike or car insurance policy on time every year. Otherwise, the policy will lapse and you will not receive NCB or the policy benefits. Keep a reminder of the policy expiry date and renewal date so that you won't forget to renew your motor insurance policy. Opt for the instant online bike/car insurance policy renewal process.

6. Members of the Automobile Association of India who promote road safety get lower motor insurance premiums. Consider joining the AAI to not only enjoy lower motor insurance premium but also promote road safety.

Here are a few ways by which you can lower your life insurance premium:

1. Opt for a term insurance plan as it is less expensive than other life insurance plans. Term plans offer only death benefit whereas whole life and unit-linked insurance plans offer maturity benefit along with death benefit. Therefore, term life insurance policies have a lower premium.

2. Life insurance premiums are calculated based on the entry age of the insured member. Therefore, it is advisable to get a life insurance policy at a young age in order to get a lower insurance premium. For instance, a policyholder aged 24 years will have to pay a premium of Rs 7,000 for a term plan of 30 years while a policyholder aged 30 years will have to pay a premium of Rs 9,000 for the same term plan.

3. Compare life insurance premium quotes across various policies and choose one with an affordable premium and sufficient coverage. Nowadays, information on the life and non-life insurance products is available online with just a few clicks of your mouse.

4. Be transparent about your health conditions at the time of policy purchase so as to avoid any hassle when making a claim. Some insurance providers are more accommodating towards individuals with a family history of medical conditions such as diabetes or cancer. You can also opt for a cancer insurance policy to protect yourself against the huge medical costs that accompany cancer treatment.

Your lifestyle also has an effect on the cost of your life insurance premium. Lead a healthy lifestyle, quit smoking, maintain a healthy diet, exercise daily, and undergo regular medical tests to keep abreast of your health condition.

 

(This article was originally published on BankBazaar.com)