Its official – we need money to survive (at least in Sunny Singapore). Yet it does seem to evaporate faster than vodka split over a pavement. On a sunny day. With a strong breeze. You get the idea!
The average Singaporean has to handle a car loan, a housing loan, daily expenses, conservancy charges, and a host of many other money draining avenues. We shop, we travel, we dine, all in style too. Its no surprise that we are always on the lookout to either earn more or save more, often times both.
The good news is that insurance costs are far easier to keep down than you think. Here are 4 easy to follow tips that could save you big bucks.
Consider Term Life Insurance
We all know the benefit of purchasing Whole Life Insurance includes the very revered and sought after cash value. You might have heard this from your agent a thousand times: “Whole Life good, got cash value to take back. Term Insurance gets you nothing back!” This is all so rosy until you realize the comparatively high premiums are not a very good option if you have tons of other responsibilities to take care of.
Term Insurance is a great way to get terrific cover at a low cost, and is in fact the most cost efficient type of insurance you can ever purchase. Make sure, however, that the term insurance is renewable so that if you will still need to take up another term, you can do that without any complications.
So your friend Rebecca took up this vaunted retirement policy that is set to take care of her in her old age and she advises that you do the same. Why not right? If its good for her, then it must be good for you as well.
Not so fast. Insurance can be a bit personal, much like the food we eat and the clothes we wear. Not every one has the same tastes or has the same body shape. Your financial situation can be a little different, your needs not exactly the same as his.
This is why it is absolutely important that you look at a number of options so that you can see what other companies and policies offer. This is very easy thanks to this fantastic site where you can look at all the policies offered by all the different insurers, then make your own decision.
The differences in premiums across different insurers can be vastly different, so you can easily save a good couple of thousand dollars just by shopping around.
Pay Annually rather than Monthly
We understand the allure of Monthly payments all too well. Apparently Courts and the other retailers know it well too, and it evident in the extensive amount of installment advertisement they do.
But did you know that Monthly payments cost around 3% more so than Annual payments?
This may not sound like much, but lets consider it from another angle. Right now, the average interest rate on a housing loan is 1.2 – 1.5%. Any bank that charges 3% interest on a housing loan would simply get laughed out of the market.
So why “borrow” money from the insurer at 3% per annum?
Improve your health
By now you know that some health conditions attract higher insurance rates that will of course make your insurance more expensive compared to that of everyone else. Insurance companies do charge extra for smokers, as they do for people who are obese.
If you fall in either (or both) of these 2 categories, you should seriously consider getting back in shape or cutting back on your puffing ways. When you are able to do this, do not shy from making this known to your insurance company and request a reevaluation of your rates. Yes, its possible to get them to lower your insurance premiums once you have proven to be of a “standard” risk again.
It may take a while, but aside from saving money via insurance premiums, you will enjoy a greater quality of life – isn’t that a win-win situation?
We all want to make a little extra and save as much as we can since this will definitely make life easier. We hope that this article has shed some light on how to save big on the insurance front. So what are you waiting for? Start use these tips and get yourself proper insurance coverage, right now!
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.