header Life Insurance

9 Smart Ways to Reduce the Premium of Life Insurance Policy

By Vikas Chandra Das
21 July 2022, 11:46 AM
9 smart ways to reduce the premium of life insurance policy

Life insurance is one of the best methods to ensure the safety of your family in case of an adverse circumstance. You need to be smart enough to choose the right policy. If you are a smart investor, then you would figure out ways by which you can save on your premium cost. It might not be feasible to negotiate the basic rates of premiums that are offered by insurance providers, but by keeping some points in mind you would be able to reduce your premium cost.

Most Common Ways by Which You Can Reduce the Premium of Your Life Insurance Policy.

1. Purchase Your Policy at a Young Age

You should purchase your life insurance at a young age i.e. immediately after you start working. When your age is less, the premium of your life insurance policy is also low. This is because insurance providers consider that you would be less susceptible to diseases at a younger age. Moreover, you would also pay a premium for a longer duration if you purchase the policy at a young age. So, they charge a low premium from you for the insurance policy.

2. The Mode of Premium Payment is Annual

If you are choosing your mode of premium payment as annual then the cost of premium paid would be low. If you are paying multiple premiums rather than the payment of a single annual premium, the chances are that insurance providers would add extra charges to cover up the additional costs that would be incurred by the company. These additional charges would lead to an increase in the cost of the insurance plan thus, increasing your premium amount too.

3. Tenure of your Policy 

The tenure of your life insurance policy plays an important role in the determination of your policy premium. The longer the tenure of your policy, the longer you will be paying your insurance premium and thus, the premium charged would also be quite low. Moreover, long-term policies would be helpful for you in creating a corpus at a low premium.

4. Opt for Riders Which You Need

Many insurance providers offer additional cover at extra charges. This extra protection always comes at an extra cost. So, it is advisable that you assess your requirements carefully and choose only those riders which are really required. This will be helpful in reducing the premium of your policy.

5. Healthy Lifestyle

A healthy person will have to pay a lesser premium. Insurance providers are nowadays paying too much attention to the health condition of the applicant. If an individual is suffering from some heart diseases or heart ailments, then death risk is higher as compared to someone who doesn’t have any heart ailments. In such a case, this would pose a risk for the insurance provider, so a higher premium is charged. Any lifestyle ailments such as hypertension, diabetes, etc. can lead to an increase in your premium. So, it is advisable to maintain a healthy lifestyle, have a balanced diet, and even exercise regularly.

6. Avoid Habits like Smoking and Drinking

Both these habits i.e. smoking and drinking have an adverse impact on your health. Your health is an essential factor that determines the premium of your life insurance premium. So, if you are smoking regularly or consuming alcohol regularly then you are at a greater risk of being affected by various health-related issues. This will lead to an increase in your life insurance premium as well. So, you should quit such bad habits to have a lower insurance premium.

7. Purchase Policy Online

The premiums for online insurance plans are less as compared to that of the offline insurance plans. This is because there are certain additional costs involved in offline purchase such as commission, administration costs, etc. However, by online purchase of insurance policies, there are no agents or intermediaries involved, thus reducing the premium of the insurance policy.

8. Compare Policies

This is another important factor that can be helpful in reducing the premium of your life insurance policies. You should not purchase insurance policies by listening only to the recommendations made by your friends or relatives. Rather you should use the online insurance platforms where you can compare various insurance plans offered by different insurers. This will help you in obtaining a policy with maximum coverage and nominal premium.

9. Payment of Insurance Premium on Time

You should pay your life insurance premiums on time. If a person is not paying his insurance premium on time, then late premium fees would be charged. Furthermore, your policy lapses if you don’t pay the premium even during the grace period. And chances are when you would like to revive the policy, you would end up paying more premium. This would lead to an increase in the insurance premium.


So, you should consider the methods mentioned above for reducing your life insurance premium. Proper research and proper information should be your main focus while you are purchasing a life insurance policy. By adequate research and comparison, you can obtain adequate coverage and even save a lot of money on the premiums.

Life Insurance banner
Life Insurance

Upto ₹25 Lakh Saral Jeevan Bima

Enter your details to buy Life Insurance
/ /
By proceeding, I agree to the Terms & Conditions