11 Ways to Reduce Life Insurance
We all love saving money, but some costs just won’t budge. There’s not much you can do to reduce fuel prices at the pump, and it’s not exactly the done thing to haggle at the supermarket.
Many Aussies assume that life insurance is one of those purchases that comes with a fixed cost, but that’s not the case. There are several things you can do to lower the price of your life insurance premium without slashing your level of coverage.
- Non-smokers and people with a healthy BMI typically pay lower life insurance premiums.
- Some insurers offer bonus schemes to members that translate into discounts on life insurance premiums.
- Avoid paying extra life insurance premiums for policies you don’t know you have. Check your superannuation as default life cover is often included.
Take Advantage of Bonus Schemes
- AIA Vitality is a wellness program that lets you earn points through healthy living. You could get up to 20% off your premium this way.
- Asteron Life offers a Healthy Life and Healthy Plus Option, which could save you up to 20% on life cover if you’re eligible.
Submit Your Medical Information
If your BMI is off but you’re healthy, a medical can also confirm this. Some people will naturally be thinner or bigger, but this does not necessarily mean they are unhealthy.
You can also submit a new medical if you lose a significant amount of weight or stop smoking for at least 12 months.
Get Covered Early
This strategy is future-proofing your premium for the length of time agreed upon with your insurer. Wait until you’re older or have diagnosed health conditions and you could be hit with much more expensive premiums. What’s more, by getting covered early you’re protecting your family’s finances in advance, not when it’s too late.
Consolidate Your Policies
What’s more, you might have taken out another policy with a different insurer! Check your super fund(s) to see if there’s any extra life cover buried in there. If you want multiple life insurance policies (for example, TPD insurance + life cover), you could get a multi-policy discount by getting them all from the same insurer.
Cut the Fat
Increase Your Waiting Period
If you’ve got a comfortable chunk of savings to fall back on, you may be able to wait longer before receiving benefits, which could mean paying lower premiums.
Reduce Your Benefit Period
Review Your Cover Regularly
It’s a good idea to check your life cover with every major event, such as buying property, having a child, or even changing jobs. All of these things could affect your risk level and benefit requirements.
Step Out of the Danger Zone
You don’t have to leave your job or quit your favorite activities to save on life insurance, but if you have done so, then you should inform your insurer.
Shop Around and Save
Make it a habit to compare prices annually, or sooner if you experience a change to your financial situation. You can do so right now, right here.
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