Eight ways of saving on your insurance premium

Posted 29 November, 2015 by Surely
in Educate Yourself

As the end of the year approaches, many of us start preparing for the festive period.
Some are going overseas to spend their last days of 2015 while others start fretting over what to buy for their friends and family for Christmas.
All these are going to cost money.

We at ClearlySurely understands that perfectly.
On Friday, we tell you about free insurance.
Today, we have compiled eight money-pinching tips on your life insurance premiums.

So poor that I can only cough up coins

So poor that I can only cough up coins

  1. Shop around

You do not buy your Christmas gift at the first store that you see.
So, why are you buying your insurance with the first sales person you meet?
500k term coverage is the same, regardless of which insurer you purchase from.
However, that 500k cover does not cost the same from different insurers.

Some of us hate shopping. Me too.
I abhor squeezing with the Xmas shopping crowd
Thankfully, you can do insurance shopping at the comfort of your home with our comparison tool.

  1. Buy Direct

Do you really need to pay more for financial advice ?
Some of the consumers out there are more financially literate than the advisors themselves!
For this group, buying direct may be the way to go.

With the FAIR initiative by MAS., you can now buy direct from the insurer themselves.
Learn, discuss and compare with us and save yourself some moolah.

  1. Taking care of your health

When you are in good health, the insurer will charge you the standard pricing.
On the other hand, insurers may levy additional premiums if you are overweight or have a health condition.
Therefore, taking care of yourself is also easing the burden on your bank account.

  1. Quit smoking

When you are a smoker, it will cost you more in insurance premium.
The cheapest 500k term insurance for a 30 years old male smoker is priced at $55,836 and only at $42,548 for a non-smoker. WHAT ?!!
For those who are not counting, that is 31% more !!

He is probably 35 years old.

He has paid 31% more in premium. Do you want the same ?

  1. Buy when young

When buying at an older age, the insurance premiums are higher.
I am a mathematics nerd so I shall draw data from the comparison tool to make this point.

A 20 years old female non-smoker will pay a total of $67,904 for a 100k Whole Life policy whereas a 30 years old counterpart shall pay $81,432.
That’s a good 20% difference in saving !

  1. Buy in bulk

No, you cannot buy multiple policies and expect a discount.
However, instead of buying three 100k policies, you can avoid paying policy fee by having only one 300k policy.

Alternatively, you may make use of riders so as to pay less.
Check out our neat article on riders.

Black Friday sales ! But no discount on insurance.

Black Friday sales ! But no discount on insurance.

  1. Pay in bulk


Come a little closer. Let me tell a secret.

Come a little closer. Let me tell a secret.

Insurers actually charge more when you are paying more frequently.
So change your payment mode from monthly to quarterly/bi-yearly/annual mode.
The amount saved may not be much but why pay more ?

  1. Group insurance

Quite often, companies buy or subsidize insurance for their employees.
You can take that into account when doing their financial planning or enjoy a good discount on your policies.

Yes, you may fire their employer one day and lose that cover/discount.
However, you are a person who does not change job frequently, the amount of money saved for that good 10 years may be quite substantial.

Everyone loves a good discount

We hope that the above will help you save more on your insurance policy.
If you have some other way to reduce the premium, please share with us.

www.ClearlySurely.com aims to eradicate the knowledge gap between consumers and Life Insurance. Our Vision is that one day, every Man, Woman, and Child will be properly insured.

Leave a Reply