If you are like most people, chances are you want to pay a smaller premium. After all, it a Rupee saved is a Rupee earned (or in this case, lots or Rupees!). We spoke to our insurance underwriters and asked them how customers can get save on their insurance premiums. This is what we found:
1) Age: If you are a young person, there is a better likelihood that you will pay a lower premium as we assume that you have many years of healthy living ahead of you (more on that in a minute).
2) Gender: Sorry gentlemen, but on average, women live a lot longer than men. As a result, being a female can lower your premium as it is perceived that women are more likely to live longer due to their genetic makeup, a better understanding of their bodies and a lesser tendency to engage in risky behaviour.
3) Occupation: Most of us who work in the office should not need to worry here, but if you happen to be employed in a risky line of work (ie: deep sea diving, the armed forces etc), your premium will be a lot higher. In fact, some insurance firms can decide to deny coverage to certain professions due to the high tendency of an accidental death.
4) Personal Habits and Lifestyle: If you are a smoker or tend to indulge in excessive consumption of alcohol, expect to pay more as you will have a higher health risk and a shorter life expectancy. Furthermore, if you like spending time racing fast cars at the Speedrome, go skydiving or engage in otherwise risky hobbies, you will need to spend more on your premium than say, someone who likes to hangout with their friends at the local coffeehouse.5) Health: Here is another reason to start exercising -It can lead to a cheaper life insurance premium. If you are overweight, it makes you seem as a liability due to the multitude of unfavorable health conditions (ie: diabetes, high cholesterol and heart disease). Its a simple message-lower your weight, lower your premium.
6) Driving Habits: Your driving record is pretty significant. If you have met with accidents, multiple speeding violations, or have been caught driving under the influence of alcohol, you are considered an unsafe driver. As a result, do your best to ensure that you have a clean driving record and reap the rewards via a smaller premium.
7) Residence: You will end up paying a higher premium if you happen to live in a particularly rough area, or built your house in an area which is prone to say, heavy flooding or is located in an otherwise hazardous area.
8) The Actual Policy: Seems obvious, but really look into your policy and determine if its perfect for you. Some aspects of a policy may not apply to you, so make sure you shop around before you decide to make a final decision.
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Disclaimer: The views shared in this blog are based on the macro economic conditions & industry status quo as per the time of publishing.