If you’re struggling to fit your life insurance premiums into your budget, you don’t need to cancel your policy. In fact, you don’t necessarily even need to downgrade the amount of life insurance cover that you currently have. Here are 6 ways that you might be able to lower your life insurance costs and still maintain the same level of cover.
Increasing Your Waiting Period
If you have some savings to fall back on, you can reduce life insurance premiums by opting for a longer waiting period before you will start to receive an income from your policy after making a claim. Generally speaking, longer waiting periods mean lesser premiums.
Reducing Your Benefit Period
Opting for a lesser benefit period is another way to cut life insurance premiums. This refers to the length of time that you will receive an income from a life insurance after a successful claim. It’s important to make sure that you would not become underinsured by going down this road, which can become an issue if your original benefit period was in line with the amount of life insurance cover that you would realistically need in the event of a claim.
Ditch Risky Hobbies
If you’re a bit of a daredevil, you can expect to pay more for your life insurance premiums compared to someone whose hobbies are less extreme. Skydiving, scuba diving, bungee jumping and jet skiing are all examples of activities that are likely to increase your premiums and could potentially trigger an exclusion if you get injured off the back of them.
Millions of Australians are overweight, and this can be a big factor in the cost of your life insurance premiums, not least because it makes you more risky as far as insurers are concerned and in turn, this bumps your premiums up. This is because an unhealthy BMI increases your chances of developing chronic conditions that you could then claim for, such as stroke and heart disease. Losing weight can cut your risk factor for ‘lifestyle’ diseases and reduce your life insurance premiums into the bargain.
Smokers pay more for life insurance than their non-smoking counterparts – up to double, in fact. If you completely kick the habit, you can apply to have your premiums lowered but this will usually mean that you have to have gone at least 12 months without smoking to have a chance of this.
Taking some time to compare policies is one of the easiest ways to pay less for life insurance. Tools such as www.lifeinsurancecomparison.com.au do the legwork for you by bringing quotes directly to you. In just a few minutes, you can start looking through your options to find a policy that will work well for you. By using Life Insurance Comparison, you can take advantage of policies that are up to 30 per cent cheaper than their“as seen on TV” counterparts.
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