Ten Ways To Save On Insurance Policies

Taking a life insurance policy is considered an investment these days and not having any, especially during an emergency, can leave a person feeling insecure and dejected. Owning an insurance policy gives a sense of security so sometimes the insured do not mind paying a little extra. However, there are ways where insurers can get the right type of policy for them and save too. Read further to find out more.

The age, health and habits of an individual determine the premium amount to be paid by them for their life insurance. Therefore, a person with a history of chronic illness or have high risk factors may not qualify for a cheap life insurance policy.

Buy from one company

If a person buys his auto, home, life and other insurance policies from the same insurer, he may get to avail of a good discount on insurance costs.

Buy the right amount

If being under insured is risky, being over insured is also not a good idea as it leads to waste of money. A person should first decide over what he needs getting insured and then buy the right level of insurance coverage.

Group plans

Employees in various organisations can also save money by purchasing group insurance plans. Insurance policies bought in bulk usually fetch good discounts. However, it is always a good idea to have a life insurance policy of your own, one which is not through an organisation.

Buy from specialists

Some insurers specialise in a particular type of insurance and they often sell policies offering significant discounts. They also handle claims in a more efficient manner than those who provide multiple types of policies.

Enquire about discounts

: Ask the insurer about the discounts available while taking insurance. Insurers usually offer different savings packages but one should note that discounts are always available for every type of policy. The insurer does not readily disclose them and the key lies in enquiring whether one is eligible for the discounts.

Raise deductible

This is the amount one pays before the insurance starts. Raising the deductible can lead to considerable savings on insurance costs.

Reduce risk

Insurers often charge higher premiums on customers who they think are ‘risky’. Hence, leading a healthy lifestyle or installing good security features can help in cutting down insurance costs.

Maintain a good credit rating

One’s credit score can impact his insurance rates considerably. Discounts can be made available by improving one’s credit score and maintaining a good credit rating.

Stick with one insurer

Keeping the same insurer for a long period could allow a person to benefit by means of a loyalty discount. Many big insurers offer such discounts to customers who renew their policies annually.

Scout often

While staying with the same company has its benefits by way of discounts, however, it is always a good idea to scout once a while to be assured one is getting the best deal.

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