Life insurance is essential to protect yourself and your family, the premium that is payed during the life of the policy is determined by factors such as age and health, the best way to reduce your premiums is to understand what factors determine the price of the premium and what we can do to reduce this. Here are 5 steps to reducing your life insurance premium.

STEP 1 - QUIT SMOKING

The price of the premium for a smoker is significantly higher than the prremium of a non smoker, by giving up smoking you can reduce your premiums by 33%, make sure you quit smoking about 6 months before you go for the life insurance medical otherwise nicotene may show up on the test upon which the life office may refuse to cover you, make sure never to smoke again as if a claim is made and it can be prooved you are a smoker the claim may be refused.

STEP 2 - GO TO THE GYM

Go to the gym and become more healthy! life offices now reward people who can proove that they regularly go to the gym and have a work out, the reasoning behind this is the more active you are the less likely you are to die. Actuarist have complex calculations to ensure that the mortality rates and payouts balance out, so if you do lead a active life the you will often be rewarded by the life office by having another 10% taken off your premium.

STEP 3 - PREVENT DISEASES

Do some research on your family history, if there is a history of heart diseases or other conditions get checked by a medical professional so that you can prevent the disease from happening in the first place. For example if your family has a history of heart disease then make sure you exercise regularly and keep fats to a minimum and ensure you are unstressed for most of the day. The more steps you take the more the life insurance will take off the premium.

STEP 4 - WORK IS A SAFER ENVIRONMENT

Make sure you work in a safe environment, the life policy of a fireman will be higher than a secretary because the secretaries life is at less risk every day. Consider the profession you are in and see if you can move to a safer profession, this will not only benefit the premiums you pay but it will also increase the liklihood that you will live! Ultimately we want to protect ourselves and our families and this is usually the most logical step to take.

STEP 5 - PAYMENT STRUCTURE

By paying your premiums annually or by creating a direct debit can reduce your premiums, this is because there is less chance of you defaulting in your payments. You can usually safe about 5% this way and you dont have to concern yourself with the hassle of making regular payments at the life office which may be a inconvenience for yourself and your life office representative.

SUMMARY

The savings can usually cut your premium by half, this means you can either have more disposable income or double your sum assured for the premium you are paying now. The best way to take advantage of this saving is to pay the extra units saved into a guaranteed investment plan or to double the sum assured so there is a greater payment made when there is a claim on the policyholders life.