Kathmandu. Today, life insurance is not only about financial security but also a reflection of a responsible lifestyle. Although life insurance is necessary to ensure a family’s future, many people still consider the cost of premiums to be a major barrier.
The reality is that by making some conscious changes and planned steps, it is possible to reduce insurance costs and maintain the desired protection. It’s both a money-saving way and a smart strategy for long-term financial stability and family security.
Age, health, lifestyle and risk factors are all taken into account while determining the life insurance premium. Age or family medical history cannot be changed. However, it is possible to completely control some aspects of the lifestyle. Quitting smoking, eating a balanced diet, exercising regularly and leading a moderate lifestyle not only improves physical fitness but also has a positive impact on insurance premiums. Non-smokers are considered less risky by insurance companies than non-smokers. So their premiums are naturally lower.
Maintaining a healthy weight also plays an important role in reducing premiums. Being overweight or obese sometimes increases the risk of high blood pressure, diabetes or heart disease. This has a negative impact on insurance valuation. Losing weight or improving your health status can provide an opportunity to lower your premiums by re-evaluating with the insurance company. Therefore, health awareness is not only a lifestyle option but also a financially beneficial decision.
Many people don’t know that the profession can also affect insurance costs. For people who work in riskier occupations, such as firefighters, construction workers or seafarers, premiums are higher. Because their lives are more at risk.
On the other hand, insurance is affordable for those who work in relatively safe occupations. While it is not realistic to change profession just to reduce premiums, if someone changes profession, there is an opportunity to inform the insurance company and re-evaluate.
Personal hobbies also sometimes have an invisible effect on insurance premiums. High-risk hobbies, such as mountaineering, skydiving, or deep sea diving, increase the risk for the insurance company. In such cases, premiums may increase or sometimes insurance payments may stop. That’s why choosing a safe hobby or recreation reduces insurance costs and ensures personal safety.
The impact of age and time on insurance is undeniable. The sooner you get insurance, the more affordable coverage you can get. Health risks increase with age. Therefore, insurance companies impose additional burdens or restrictions. The advantage of getting insurance at a young age is that the premium is comparatively low and the policy remains unchanged even if your health changes.
It’s also important to review your insurance at different times of life. Significant life changes, such as buying a new home, having children, increasing income, or taking on major financial responsibilities, will require a reassessment of your insurance. Reviewing your insurance at the right time will help ensure that your current policy meets your real needs.
However, insurance is not just a way to save money, it is a financial commitment and a moral responsibility. Sometimes purchasing insufficient coverage for lower premiums can lead to financial hardship for the family in the future. That’s why it’s paramount to ensure adequate coverage when buying and saving for insurance.
Lowering life insurance premiums does not mean reducing protection. Rather, it is the process of improving quality of life, making financial plans, and taking personal responsibility. Quitting smoking, health awareness, timely policy adoption and regular review – these 4 factors can be important for effective and sustainable savings.
