Tips to reduce life insurance premium without affecting coverage

Following are the important ways in which the life insurance premium can be reduced without affecting the total coverage:

1. Keeping occupation/activities in mind: There are certain professions that come under the category of high-risk activities. These may include professions or activities like adventure sports, fire-fighting, defense activities, chemical-industry etc., among a range of other activities. In such cases, generally the insurance providers charge heavier premiums. Therefore, due thought must be given to the activities that one pursues as this directly impacts the premiums that are payable.
2. Habits like smoking: Notwithstanding the frequency in which you smoke, insurance providers always treat smokers as a high-risk investment. This means that the payable premiums for a smoker are always higher than those for non-smokers. These unhealthy habits have a direct impact on the payable premiums and therefore, must be avoided in order to reduce the premium.
3. Pre-existing health conditions: At the time of purchasing the policy, when the requisite tests and medical documentation is to be done, the health conditions are to be declared. At this time, at the very outset, if there are any pre-existing health conditions, they have to be defined and documented. Most insurance providers do not offer coverage against any pre-existing conditions, especially if the condition is critical or life threatening, as this increases the risk-probability of fatality after policy purchase. However, there are certain insurance providers who do offer coverage benefits at very high premium rates. Therefore, the existence of any pre-existing health conditions leads to higher premium rates.

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