Smart Ways to Lower Your Insurance Premiums Today

Struggling to keep up with your insurance payments? You’re not alone. Many Indians are now looking for practical ways to lower insurance premiums without giving up essential coverage. On Insurance Awareness Day, experts weigh in with real-life strategies to help you stay protected—without burning your budget.

Why People Let Go of Insurance

Many people let their insurance lapse when premiums feel too heavy. Some downgrade their plans or stop paying altogether. But doing so exposes them to major risks. Experts say the real solution lies in smart planning, not in cancelling coverage.

1. Go Online, Buy Early

Jude Gomes, MD & CEO of Ageas Federal Life Insurance, advises starting early. “Buying insurance at a younger age locks in lower premiums,” he explains. Online policies also cut distribution costs, often making them cheaper than offline plans.

Tip: Buying early and online can save up to 30% on life insurance premiums.

2. Switch to Annual or Monthly Payments

Annual premiums often come with discounts, but if a lump sum feels hard to manage, monthly or quarterly payments help ease cash flow.

Gomes says, “Switching to smaller, periodic payments helps policyholders manage changing finances better.”

3. Trim Non-Essential Riders

Insurance riders offer extra benefits, but not all of them are necessary. Removing optional add-ons can bring down premiums without touching core protection.

Example: Removing a critical illness rider from a term plan can reduce the cost by 10–20%.

4. Top-Up Instead of Upgrading

Instead of upgrading your base plan, add a top-up or super top-up. It’s a more affordable way to increase your coverage.

Ajay Shah of Care Health Insurance shares, “Top-up plans work like a booster—small cost, big benefit.”

5. Use Co-Pay and Room Rent Clauses

Want to reduce your health insurance premium without losing important coverage? Opt for co-pay clauses and room rent limits.

Case Study:
A 65-year-old buys a ₹10 lakh policy at ₹35,088. By adding co-payment and room rent caps, the premium drops 36%, making it much more affordable.

6. Consolidate Your Policies

Holding multiple policies? Consolidate them. A single, well-designed policy is easier to manage and may be cheaper than multiple overlapping ones.

7. Live Healthier for Lower Premiums

Insurers offer better rates to healthier individuals. Adopting good habits—like quitting smoking or exercising regularly—can lower your future premiums.

8. Work with an Advisor

“Insurance can feel confusing,” says Kunal Varma, CEO of Freo. “A trusted advisor helps you compare policies, trim extras, and get the best deal.”

Final Thought: Insurance Isn’t a Luxury. It’s a Smart Strategy.

Insurance isn’t just for emergencies—it’s long-term peace of mind. With a little planning, flexible payments, and customisation, anyone can afford it.

“With a few smart choices, you don’t have to choose between your budget and your safety,” says Varma.

Also Read: Pramerica Life Insurance Sets New Standard with 99.18% Claim Settlement Rate