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Smart ways to save on life insurance

There are ways to save on life cover – and make sure your family is protected.

30 June 2021
2 minute read

We know you appreciate the need for insurance. We also know that paying premiums can be a challenge in tough times when budgets are stretched. Fortunately, there are ways to save on life insurance premiums. Follow these tips and you may find your 1Life policy premium is more affordable!

Keep chronic medical conditions under control

Life insurance premiums are based on risk. Chronic conditions such as diabetes and high blood pressure increase the risk of dying earlier than expected, which means if you have a chronic condition and it is not well controlled, you may pay a higher premium. If you work with your healthcare provider to carefully manage and monitor any chronic medical conditions, you may qualify for lower premiums.

Get healthy!

Here’s a list of lifestyle adjustments that could help you to stay healthy, and possibly lower your premium:

  • Stop smoking and vaping
  • Lose weight
  • Drink in moderation
  • Eat healthily
  • Exercise regularly
  • Maintain a healthy blood pressure
  • Manage your stress (meditation, breathing exercises and talking to a professional such as your GP or a SADAG counsellor are good options)
  • Don’t do recreational drugs

If you have made any of these lifestyle changes and your health has improved, chat to 1Life. You may qualify for a better premium.

Don’t delay taking out cover

Life insurance premiums for younger policyholders are often cheaper because younger people are usually healthier and have few, if any, chronic conditions. So don’t delay taking out life cover – take out insurance when you are young, and you could save on premiums in the long run.

Get the right amount of cover

Work out how much life insurance you need, and only buy this amount of cover – don’t buy more. Discuss your requirements with a financial adviser or use the 1Life insurance calculator to work out how much cover you need.

Your life insurance policy will need to cover:

  • Your funeral expenses (if you don’t have a funeral policy) and any unpaid medical bills related to your death
  • The cost of settling your estate, including taxes and legal fees
  • Your outstanding debt, including the bond on your home
  • Education costs for all your children, including tertiary educationAnnual living expenses for your family: food, petrol, insurance, utilities, holidays, domestic workers, and more
  • Medical aid for your family
  • A financial buffer for any emergencies

Check your employee benefits

If you have an employee group life insurance scheme, you may be able to reduce your personal cover and still have enough cover in total. Work with your financial adviser to evaluate your life cover requirements before making any changes to your policies.

Remember, honesty pays!

There is one thing that will not help you in the long run, and that is withholding information from your life cover provider. If you don’t disclose all relevant medical and personal information when you apply for insurance, that could mean a reduced or rejected claim.

Life cover is the financial protection that your family needs against your death and the loss of your monthly income. Invest in the cover they need today!

Original article published on: May 19, 2017
Updated on: June 30, 2021

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