Life insurance is designed to provide coverage and protection to your heirs when you pass away. People with dependents apply for life insurance to provide financial relief to their loved ones after they depart from them. Just as there are different types of life insurance policies, the insurance premium that you pay for these policies also varies. Generally, the premium is calculated by the insurer on the basis of perceived risk of dying. The higher your chances of dying, the higher the insurance premium you pay. There are some simple ways to lower your life insurance premium.
Improve your health. Health problems, such as diabetes, high blood pressure, and heart diseases can lead to a higher insurance rate. The insurance rate for smokers and nonsmokers also varies.
Quit smoking. By quitting tobacco use, you can lower the insurance premium. However, keep in mind that some insurers only treat nonsmokers as people who have never smoked in their entire lives. Others may give you a non-smoker premium rate if you have successfully quit for anywhere between 6 months and 5 years.
Stick to your diet or your exercise goals. Weight is another factor that affects your insurance premium. By exercising regularly and controlling your weight, you can lower your life insurance premium. After improving your health, you can request a reevaluation by your insurance provider.
Apply for life insurance early on in life or as soon as the need arises. Some people believe that they do not need life insurance until they have children. However, that is not the case! In fact, the sooner you purchase life insurance policy, the lower the premium you will probably need to pay every month. If you have debts, if you are planning on getting married, or if you have elderly parents relying on you, then you should be protected with life insurance!