While the unpredictability in life makes holding a life insurance policy to cover any unfortunate incident necessary, policyholders are finding it hard to cope with the high premiums with the rising inflation. Since letting your policy lapse is not a profitable option, your only option is to lower the premium during the renewal of the policy. We will give you 5 ways you can reduce the cost of premiums significantly. Negotiate with your insurance provider keeping these factors in mind and you will see how you get a substantial discount on the premium.
Comparison with other market policies:
Before applying for a renewal, compare your coverage to other insurances currently on the market. You can switch your insurance carrier if you believe another company is providing you with greater amenities and services than your present insurer. If you mention switching insurance providers, you’ll observe that the existing provider will attempt to tempt you with cheaper options.
Increase the deductible
The money that an insured promises to pay out of pocket while making an insurance claim is called the deductible. This is a fixed amount. The more you increase the deductible, the lower your premium will go. In the event of an unfortunate incident, the deductible must first be paid to the hospital before insurance coverage kicks in.
Insurance cover size
According to experts, if the main insurance’s premium is particularly high, you should limit the amount of coverage and purchase a top-up health policy at the same time. The waiting time for your new top-up policy could, however, be as long as 45 days.
Remove add-ons
Remove unnecessary add-ons. This unnecessarily increases your premium. Choose your add-ons according to your needs and do away with ones you do not require.
Renew before expiry
Renewing your policy before it expires saves you money. The insurance rate can go up if you renew the policy after it has expired. Additionally, you’ll miss out on a potential no-claim benefit. Many businesses reward customers with no-claim bonuses for going a whole year without filing an insurance claim.
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