There’s more to saving money on life insurance than annual discounts or seasonal promotions. In fact, one of the most effective ways to lower your life insurance premium is to live a life that reduces your chances of actually needing the capital payout.
It may seem like a breeze, but healthy people have access to the cheapest life insurance in Singapore.
Whether it’s your first time buying a plan or want to know how to cut renewal costs for the next year, here are three ways to lower your premiums so you don’t have to pay an arm or a leg for your life insurance plan.
1. Don’t hesitate to buy life insurance
As a rule of thumb, younger adults will find the lowest premiums on the life insurance market. This is because health problems increase with age, making life insurance more expensive to take into account pre-existing conditions and increased health risks.
In addition, the premiums are cheaper because you spread your policy over a longer period of time. If you are in your late 20’s or early 30’s, now may be the best time to get life insurance to maximize coverage at the lowest cost.
In terms of monthly premiums, 50-year-olds pay between 241 percent and 285 percent more than 20-year-olds. Even 35-year-olds see 48 to 51 percent higher premiums than 20-year-olds. Hence, the best thing you can do to save money on life insurance is to secure your premiums early and invest in a plan sooner rather than later.
ALSO READ: Should You Convert Your Term Life Insurance to Life Insurance?
Some young adults may not think they need life insurance; However, accidents and illnesses can happen to anyone. With life insurance, you can ensure that you leave financial protection for your family or other beneficiaries in the event of your disability or death.
If you are concerned about the higher cost of life insurance, term life insurance may be a more suitable and affordable alternative that will protect you during your working years.
2. Quit smoking, it will save your life and money
Smoking is a major factor in determining your life insurance premium because of the associated risks of cancer, stroke, and other serious health problems. In fact, one of the first questions providers will ask you is whether you are a smoker.
If the answer is yes, you can expect significantly higher premiums than non-smokers. So if you really want to save money on life insurance, you can start by reevaluating your tobacco use.
Overall, a 35-year-old smoker pays 38 percent more premiums than a non-smoker. With a DPI plan up to the age of 65, non-smokers by the age of 30 can expect to pay 21 percent fewer monthly premiums than women who smoke.
Meanwhile, male nonsmokers would pay 29 percent less than their smoking counterparts. While smoking increases rates for any smoker affected, the highest premiums fall on men because of their higher risk of health problems such as heart attacks (which are then exacerbated by tobacco use).
If you want to save that cost on life insurance premiums, you should look for resources to help you quit smoking. Most providers require you to be tobacco-free for 12 months before you are eligible for no-smoking plans.
3. Maintain a healthy lifestyle
Chronic illnesses and a high risk lifestyle also increase your life insurance premiums. While there probably isn’t much you can do about your favorite extreme hobbies or pre-existing conditions like asthma right away, there are other ways to improve your health so that you pay as little in premiums as possible.
For example, if you have high cholesterol or blood pressure related to weight, healthy weight loss can benefit both your vital signs and your bank account in terms of life insurance premiums.
However, maintaining a healthy lifestyle involves more than just weight management. To improve your health, you should incorporate exercise, exercise, sleep, diet, and emotional wellbeing into your lifestyle.
Singapore has many resources to help you meet your health and fitness goals. By using these free guides, you can learn how to lead a healthy lifestyle, which in turn will help you manage, or even improve, some medical problems.
Start your health journey now and say thank you later
Regardless of whether you are considering term life insurance or life insurance, your age and state of health will be large factors in determining your monthly or annual premium.
Young adults and non-smokers get the cheapest rates because they are considered healthier and less prone to health problems. But even if you’re older or are a smoker, it’s never too late to lead a healthier lifestyle.
Starting now will thank you later for making you feel better, but also save money on medical expenses, including life insurance.
This article was first published in ValueChampion.
