Many of us spend 5% to 20% on insurance. It may for life insurance, health insurance, home insurance, auto insurance, insurance for business. When I started buying the insurance, I have not realized how we can save insurance costs. Over a period of time, I realized that there are various ways of reducing the insurance costs and now I am able to optimally use the costs in insurance.
8 Ways to reduce the insurance costs
- Shop around for least expensive policies: There are various insurance companies offering insurance at lower costs. Try to shop around and pick-up the best and least expensive policy suitable for you. There are website which offer comparison of various insurance policies like www.policybazaar.com etc., Based on the insurance coverage, you can buy the policy
- Have you ever claimed No Claim Bonus ? Are you aware that after completion of a year, in case you have not claimed any insurance amount for your car, you are eligible for “no claim bonus”. The no claim bonus would be reduced from your next premium.
- Ask for discounts: In case any of the insurance companies directly approaching you, ask for discounts. Once they provide the discounted price compare with other insurance policies and if you feel it is least expensive, you can go for that
- Reduce coverage: I have observed that peopled not generally worry about the insurance coverage they require. If you are at 30’s or 40’s and taking a health insurance policy for Rs.20 lacs may not required. You would require a high insurance coverage policy during 40+ of your age. Based on the reduced coverage the insurance premium can be reduced.
- Avoid duplicate insurance coverage: One of the mistakes, I have done is taking a two health insurance policies for self and kids. When one policy is sufficient for health coverage, why do we need the second one. I stopped the second one and saved the premium. One precautionary note is just ensure that the one which you want to continue would have all kinds of illness insurance coverage.
- Combine policies: Onother mistake I was making is buying multiple life insurance policies. I realized lateron that if you combine policies or go for a bigger coverage life insurance policy, the premium would be less than comparing to what you pay for multiple life insurance policies.
- Group insurance: Earlier I took health insurance separately for me and for kids. Later I realized that a group insurance for the entire family costs lower than taking individual health insurance policies. Now I have only one group health policy which is least expensive
- Special life insurance policies: I took a life insurance for Rs.1 lac coverage and paying a premium of Rs.6K per annum. I was not at all happy for the life insurance coverage amount. I want to have a life insurance for atleast for Rs.10 lacs and I do not want to pay Rs.60K. In case of any unforseen thing happening to me, my family should get a good insurance amount or if I am surviving, , I do not want anything back to me. Then I heard a good insurance plans from LIC like Anmol Jeevan where I need to pay only Rs.3K and I get insurance coverage for Rs.10 lacs. I do not get anything if I am surviving after coverage time. Have you ever tried such innovative plans offered by insurance companies ?
Conclusion: Insurance is very important for an individual. However we can lower the insurance costs by looking at the ways and means of reducing them. On a precautionary note, we need to ensure that proper insurance coverage is there.
Readers, what other ways do you think you can reduce the insurance costs? Do you have any other innovative methods of doing this? Please give your comments
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