There are people who try to save money on their life insurance premiums by choosing the cheapest cover only to end up being under-insured. And by being under-insured, they are more likely to spend more when the time comes for them to make an insurance claim. Why? Because the payment they received wasn't enough for their expenses, including paying the insured's debts, and their ongoing expenses such as utilities and rent. This thus forces them to dip into their savings, or worse accrue more debt.
So we recommend that you take a strategic approach towards your life insurance premiums, rather than scrimping. The difference between the two is that the first one provides you with an effective strategy that helps you save without sacrificing your family's future. Meanwhile, the latter only helps you save in the short term, but leaves your future finances at risk.
But how exactly can you save money on your life insurance? That is what this article is all about. We will share with you a number of effective tips in the following paragraphs, so read on...
Technique #1: Bundling
With a number of different insurance policies out there, you're probably considering getting a number of them to get adequate protection for you and your family. Let's say for example that you want to get term life insurance, income protection insurance, and trauma insurance. Rather than getting them separately, you might be able to save money by bundling or combining these policies into one. In fact, most insurers would offer around 5% discount when you apply for a multi policy.
Technique #2: Double Your Coverage
Won't this double your expenses too? Here's the thing: just like multi policy, you will get what's called a multi life policy by adding your spouse to your policy. You will enjoy around a 5% discount when you apply for this type of policy, and get double the coverage in the process.
Technique #3: Make Lump Sum Payments in Advance
When you make an annual payment in advance, you will receive a bigger discount than making monthly payments. What's more is that you will avoid paying another 8% per annum for frequency loading, which your insurer will charge you when you make monthly payments.
To save even more in your premiums, make sure that you get a policy that truly fits your needs in terms of coverage and price. Contact our qualified advisors at Rate Detective today and they will help you find just that, by providing you with rate comparisons of Australia's top insurance companies. Contact us today to get started!