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How can I Negotiate my Life Insurance Premium Price with the Provider

By PolicyBazaar
  | Published: 24 December 2020 | Last Updated On: 08 February 2021

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Buying a life insurance plan could be an expensive and lengthy procedure in case you are not sure about where to start. Moreover, a lot of people are not sure of the range of Life insurance premium price they must pay and hence, opt for the first offer that they come across. Such an approach could be self-defeating since the rates on insurance change frequently and it becomes simpler to get a better deal when you know where you can find them.

Generally, most of the people are likely to put insurance plans on the back burner once they have bought their plans. This is because insurance can be a little tricky and confusing to understand. Moreover, when you have to file an insurance claim, the policyholders or their nominees dread putting time in trying to know the expenses, deductibles, and the costs of repair. What’s even worse is that after filing a claim, your insurance rates might rise.

But no matter how daunting it could be to get an insurance rate, which is suitable for you, it all becomes worth in the long-term. Having economical and affordable insurance may save you a lot of money that can be used for other investments, helping you in making the most out of your hard-earned money.

Therefore, before signing your name on an insurance agreement, ensure that you have gone through the following steps to make sure you have to pay a reasonable life insurance premium price.

1. Be ready to put up questions

In case you accept the 1st or even the 2nd offer from the very first insurance provider you come across, then you can be missing out on a lot of potential savings. In a lot of cases, insurance companies will just inform you about the eligible discounts in case you ask them beforehand. You should ask them about those things that make their services unique and different from the other providers in the market. You should also run some background checks into comparable prices from the other insurance companies and ask the concerned company how they plan to offer you better prices. The more you talk to the representative from the insurance company, there are more chances you will be able to reach the point of some type of agreement.

2. Stay aware of the hidden charges

One of the issues with insurance prices is that the provider may not always offer them to you in an upfront way. This is because some of the packages increase with time or charge small fees that might not even come to your notice when you initially sign. You should check for recurring costs that actually don’t mean anything, administrative charges, and additional costs above the premiums and deductibles. There are the additional charges, which are generally hidden and can make your total insurance cost too high for the kind of life coverage you are opting for. Here are some examples-

  • Waiver of Insurance Premium: In case the insured individual becomes disabled, the rider will waive off the premium payment. This is the same as an insurance plan, which makes payment of the mortgage in case the homeowners lose their employment or become disabled.
  • Term Conversion Add-on: If you want to convert your term insurance plan into a universal or whole life plan, then this term conversion rider will provide you with that option.
  • Benefit of Accidental Death: In case the insured individual passes away in an accident, the payout will increase (often get doubled).
  • Disability income add-on: Using this additional cover, you will get a particular amount of income in case you become disabled.

3. Keep a track of gradual hike in the rates

Even if you are a loyal and valuable customer, the insurance providers might use this in their favor. Continuing with the same provider for a long duration means that there are chances you will do so in the future too. Your insurance company can be gradually increasing your prices over a long time duration simply because they know that you won’t probably leave. They realize canceling a plan and moving forward to another company has a lot of hassles.

4. Regularly check back in

A lot of policies must be updated within a period of every 6 months because that is the time duration most insurance packages are sold for. Even if you have made payment for the complete 6-month price upfront, you must go through the terms of the plan regularly so that you are able to avoid unnecessary costs or coverage. This can also turn out to be a good time for asking your provider for a discount and keep an eye on the yearly savings specials.

5. Enquire about the tiers of benefits

After you have decided the numbers of the plan, that is, the sum assured, length of the plan, etc, then you might find that you are capable of saving funds by rounding up. The rates of the insurance premium for a particular coverage level may often fall when you reach a particular threshold of coverage.

6. Look at other insurance companies too

If and when the situation comes down to it, in case you are not satisfied with the prices offered to you, the best alternative for you is to look for a different insurance provider. Generally, there are many different insurance companies in any particular area and you must use this to your advantage by looking around and making a comparison between different quotes available. Thankfully most of the insurance providers make their policy quotes easily available online. While one provider may offer a plan with a lower amount of premium for similar coverage, it might have exclusions, which make the plan different in necessary ways.

The Bottom Line!

The insurance prices are not fixed for everybody across every provider. In fact, these rates can be altered pretty easily. Get the most from your insurance coverage by gaining the best and economical life insurance premium price and this can be done by following the steps mentioned above.