On their own, term insurance policies are not terribly expensive. Since they only last for a certain number of years, they are much less expensive than whole life policies that cover, well, your whole life. So, many people choose term life over whole life and invest the difference elsewhere. There are some ways to make term insurance policies even more affordable. That increases your financial options when it comes to making plans for the future.
One strategy involves adjusting the type of term insurance you buy. Not all these policies are the same. For example, some providers offer term plan insurance. Policyholders basically pay for the coverage they want and decline the coverage they do not need. Options like this one maximize your financial flexibility. However, most life insurance cost-savings methods involve lifestyle adjustments.
Most underwriters assume that recorded traffic violations are just the tip of the iceberg. That may or may not be true, but underwriters do not make case-by-case decisions. They go with statistics. And statistically, people who have one or two tickets are usually habitual speeders. They simply haven’t been caught very much. The same thing applies to other moving violations, such as unsafe lane changes or running red lights. If your tickets are close together and/or fairly recent, the effect is magnified.
Most insurance underwriters do not care how strong your medication is. They just want to see a blood pressure that’s under control. If your BP is more than 145/95, do whatever it takes to reduce it. Don’t hesitate to ask your doctor for stronger medicine. Even a point or two can be the difference between the least-expensive pricing level and a higher risk premium. Roughly the same thing applies to other chronic illnesses, like asthma.
In this area, they type of medication matters a lot. Many people struggle with situational depression after things like a divorce or the loss of a loved one. Mild drugs usually are not red flags to most underwriters. Other people, however, struggle with chronic depression. That’s usually caused by a chemical imbalance or other biological problem. The fear is that a sudden trigger will push such individuals over the edge. When you apply for insurance, consider providing your broker with a letter from your doctor that explains your condition in detail.
There is a wide mix here. Some forms of cancer may essentially disqualify you for term life insurance purposes. Other illnesses, such as breast cancer, may not be a problem after a substantial waiting period has passed. We’re probably talking five to seven years of remission. Finally, there are a few companies that do not ask about this condition. Their premiums are usually higher, but some former cancer patients may not have much choice.
Honorable mention goes to smoking, dangerous hobbies, family history, and hazardous occupations. Some of these statuses are completely beyond your control. But if you can do something to limit your risk, do it before you start shopping for insurance. You may be surprised how much your premiums decrease.
About Aegon Life
With a complete product suite of life insurance plans, superior technology, and customised service, Aegon Life Insurance Company Limited launched its pan-India operations in July 2008. As a joint venture between Aegon – world’s leading financial services and Bennett, Coleman & Company – India’s leading media house, Aegon Life Insurance adopts a local approach to facilitate customer interaction. Our vision to be the most recommended new age life insurance company has enabled us to leverage digital platforms that bring transparent solutions to customer needs. Our financial planning and investment solutions include term life insurance plans, pension plans, unit-linked insurance plans (ULIPs), health insurance plans, child education plans, and more.