Any insurer offering life insurance plans look at some vital factors to decide upon what amount of premium to charged based upon a particular amount of sum assured.Some factors like age and sex might not be under your control but there are a lot of which you can control and which can positively effect in reducing the value of the premium that you pay towards a life insurance plan.
At times if these controllable factors are not taken care off the insurer can either refrain you taking a policy or might charge an extra load to your regular policy premium.Lets look at the few of the important factors which you can control to keep a check on the life insurance policy premium amount.
a)Refrain yourself from excessive drinking and smoking: These are two habits which one should always refrain from doing.Bad habits like these can have serious long effect on your health and your insurer will always have an interest in knowing about it. During the time of applying for a life insurance policy you are always asked to declare the details of habits like smoking and drinking. A very dependence on both on of these habits would make investing on you by the insurer a risky proposition for them. A heavy indulgence can even lead to rejection of your insurance proposal or you might have to pay some heavy extra charge on a particular amount of sum assured. It is always advised that should always read the terms and conditions of the policy in details if you carry a similar habit. Unknowing a policy this may give full authority to your insurer to reject your claim
b) Occupational hazards: Your hobbies like scuba diving, boxing or skydiving or people in certain occupations are considered by insurers as dangerous proposition to insure. Some insurers may even refrain themselves from issuing policy even and some may put an extra load on the base premium which would make your plan very costly.
c)Current health condition: You health is a basic prerequisite based on which your insurer calculates a premium. People with pre-existing bad health conditions are more prone to health hazards. This is will always lead to higher premium being demanded by the insurer. In fact in case of certain critical illnesses your insurer may even reject your insurance application. Policies taken on a later age considers health a primary factor . So it is always advised to take a good care of your health and take possible steps well in advance so that we can keep can avoid extra premium cost.
d)Longer Sum assured: A long sum assured means that your insurer’s responsibility to protect you increases and spreads over a longer period of time. This would always lead to a higher premium of life insurance policy. Like policies with higher sum assured may lead to insurer settling a higher claims and if it is supplemented by long tenure the risk on the insurer increase which would lead to increase premium. So while planning for life insurance policy one should build a complete understanding of the amount of sum assured best suitable for oneself and evaluate the term of the policy most suitable for them.
e)Buying a policy online rather than doing it offline : Insurers considers policyholders taking insurance buying decisions online are more knowledgeable and have better understanding of things. Online insurance customers are also considered to have easier access to right health care services so they are less prone to risks for which the insurer is responsible So it is always advised to take a life insurance plan online because it will be always a cheaper one compared to it offline counterpart.