Getting Good Value: How To Make Premiums More Affordable

Insurance premiums can be an annoying expense. Unlike other things you pay for regularly, insurance is a product that you buy and hope to never use. Who wants to become disabled or contract a deadly illness, right?

However, having insurance coverage – life and critical illness insurance, to be specific, is essential in protecting your financial stability. It’s something that you just can’t do without given life’s unpredictability. In spite of this, many people put off purchasing insurance due to it costing more than what they’re willing to pay for.

But, remember, these plans don't have to cost an arm and leg. Insurance companies will assess you based on a number of factors to see which standardized classification you fit into. Getting a standard rating is the ideal scenario as it means you’re not a financial risk for the insurance company. That lets you get a good value for your premiums.

Here are some ways you can get a standard rating and lower premium prices:

 

 

Purchase At A Young Age

Statistically-speaking, the younger you are, the lesser the risk of death or serious illness. That means the chances of you making a claim at any point in the near future is slim. As such, you’re less of a financial risk to the insurance company than, say, older applicants.

In the case of life and critical illness insurance, premiums generally become more expensive with age since the risk of death and chronic illness manifesting goes up as you get older. Sure, you might not find much use for it yet, but applying while young, opens you up to deals you can’t avail of in the future. Plus, it gets you into the habit of allocating money for premiums at an early age.

 

 

Keep Yourself Healthy

The previous rule similarly applies when it comes to your health: the healthier you are, the less you’ll pay for premiums.

Insurance companies review your medical records when you apply, checking everything from your family and personal history of illnesses to whether you smoke or not.

Speaking of smoking, the price of premiums for smokers is typically two or three times more than that of nonsmokers. Smokers also fall into a specific category that charges higher premiums, given how smoking causes various health problems. Perhaps, one of your New Year’s resolutions is to quit smoking. Stick to it as that will greatly assist you get a standard rating and reduce the prices of plans, whether it’s your first or it’s additional coverage.

Additionally, it’s common for people to want to get into shape after the holidays to shed off the extra weight gained during this season of festivities. Some might hit the gym while others might go on a period of detoxification. Whatever your preferred methods are, losing unwanted pounds and reaching an ideal weight is not only good for your overall health but also is a huge factor in determining whether you get a standard rating or not.

Knowing for a fact that you are healthy enough to get a standard rating gives you the confidence to submit an application for insurance. And this will be reflected in the results from an annual (or biannual) complete check-up; physical exam, blood tests, urinalysis, among a host of other tests.

 

 

Consult A Professional

In applying for insurance coverage, it’s always good to weigh all your options. Considering all available product solutions, and not only what is popular, is a smart move before one decides on what plan type to purchase. The long term effect of the plan should always be looked at; payable years, guarantees, incrementing premiums if any, riders, maturity of the life coverage and critical illness coverage, to name a few.

In case these terms sound too overwhelming for you, don’t hesitate to contact a financial advisor. What’s good about getting professional help is that they can help you create a flexible financial program that’s not limited to one product solution. Your advisor might set this up by also factoring in your given time frame and allowable budget.

You see, if both you and your advisors are not careful in setting this up, it might cost you more to keep everything in place in the long run. It might also put you at risk of losing the benefits you’ll need down the road.