Choosi Announces 6 Ways To Reduce Your Life Insurance Premium

The cost of life insurance, known as the 'premium', is determined by a number of factors including your age, health and lifestyle, as well as the level of cover you choose. Needless to say, if you're a 68-year-old smoker with a skydiving addiction, chances are your premium will be high. Fortunately, there are ways for everyone to lower life insurance premiums. Here are some simple suggestions.

Shape up and butt out: Losing weight and quitting smoking can make a huge difference to life insurance premiums, with some companies charging smokers double the non-smoker rate. Rate increases may also apply if you're categorised as overweight or drink alcohol. It may not be a quick fix, but if you make these lifestyle changes and reapply, your insurance company is likely to offer a better quote.

Pay annually: Some companies offer a discount if you pay once a year, rather than once a month. It may feel like a lot of money at the time, but you'll save in the long run.

Count, then cover: Avoid paying for more cover than you need by asking yourself one question: how much money would your family need to maintain their lifestyle?

Review and renew: You may have originally taken out a life insurance policy to cover specific commitments, such as mortgage repayments or school fees. As these commitments change, it's worth considering whether your level of cover should too.

Get in early: If you are still young and healthy, you have a better chance of being offered 'standard' premium rates, which are generally the cheapest. If you continue to pay these premiums, your insurer will continue your cover, even if your health deteriorates with age.

Bundle up: Consider adding benefits such as trauma or total and permanent disability insurance to your main policy – you may find your insurer offers these at a discounted rate. There are family and partner discounts available as well.

These tips will help you get your premiums as low as possible, but it's important to note that all companies are different. As with any type of insurance, the simplest way to cut life insurance costs is to compare insurers. Choosi takes the leg work out of choosing a life insurance policy, we compare a range of insurers so you can easily choose cover to suit your individual needs.

This is general advice only: Choosi is owned by Hollard Financial Services Pty Ltd (ABN 53 128 692 884), the information on this website does not take into account your personal objectives, financial situation or needs. You should consider the relevant Product Disclosure Statement (PDS) for more information and to ensure the product suits your needs.