5 life Insurance hacks you must be aware of

For some, they are just means for getting an exemption from taxes; however, there is more to Life Insurance than that. They can be a robust tool in case of any eventuality. While being prepared beforehand is essential, having some life under your belt can make quite a difference. Here are five life insurance hacks that can help you get the best out of your Insurance policy.

Review your insurance policy

Most of us have our premiums automatically deducted from our bank accounts. Going through our insurance policy documents rarely occurs to us after purchase. However, you should review your insurance policy once in a while to go through the costs as well as the rate of increase of premiums. Also, check your bank statement for additional charges that might have levied. You can also modify your plan to remove unnecessary or extra features that might be adding to the cost. This can help lower your premiums as a whole.

Consider plans with annual premium options

There are plans in which you can opt to pay the premiums annually. With monthly payments, you lose a considerable amount of money in service charges that are levied every time you make payment. Paying a larger sum towards your insurance at the end of the year might seem daunting, but it isn’t. If you compare it with the net amount that you are paying to your insurance company monthly, it is bound to be lesser. You can invest the money, you save in some other avenues or plan a vacation. If you have a credit card with a cashback option, you can pay the annual premium using it. You will have an opportunity to earn more cashback on a larger amount.

 

Check your deductibles

In case you are admitted to a hospital or have had an accident, you need to pay some amount upfront before availing the insurance benefits. This amount is known as a deductible. The higher your deductibles, the lower are your premiums and vice versa. The trick is to balance the deductibles with the premiums. You need to make sure that the deductibles are not a burden to you or your family, in case of any eventuality.

Do not let your policy lapse

In case you run out of money or forget to pay the premium at any time, you run the risk of your policy lapsing. This results in a negative insurance score. In case you approach a company to renew your policy, you might be charged higher premiums. To avoid this, you need to be aware of when the premiums are due. In case of any difficulty in paying the premium, you can approach your insurance company and discuss the option of postponing the payment or partial payment to make sure that your policy does not lapse.

Check for benefits before purchasing a policy

Insurance companies offer discounts and other rewards for being associated with them. You might be eligible for a discount or additional benefits after staying with a company for some years. Check for such offers before you opt for any insurance plan. These benefits do not seem significant at the start but can be very beneficial in case of any eventuality.

There are no shortcuts when it comes to choosing life insurance. However, being smart and utilizing the benefits can help you get the maximum benefit of your insurance plan.