When Ramesh Kumar, a 25-year-old software engineer, landed his first job, he wanted to focus on enjoying his newfound independence not on something as serious as life insurance. But his parents kept reminding him to get insured early. To stop their constant nudging, Ramesh decided to consult a financial advisor. Here are 6 Smart Ways to Keep Your Life Insurance Premiums Low.
What he learned during that meeting completely changed his perspective. The advisor explained how buying a life insurance policy at a younger age could help him save a significant amount of money over the years all thanks to lower life insurance premiums.
If you’re in your 20s or 30s and think insurance can wait, you might be making the same mistake Ramesh almost did. Understanding what affects your life insurance premium and how to manage those factors can help you secure the best possible deal.
In this article, we’ll look at 6 proven ways to lower your life insurance premiums while still ensuring your loved ones are financially protected.
What Is a Life Insurance Premium?
A life insurance premium is the amount you pay regularly to your insurer monthly, quarterly, or annually to keep your policy active. In exchange, the insurance company promises to provide a financial safety net to your family in case of your unfortunate demise during the policy term.
Simply put, your premium is the “cost of protection” the price you pay for peace of mind.
The premium amount isn’t arbitrary; it depends on several key factors such as:
- Your age and health condition
- Your lifestyle habits (smoking, drinking, etc.)
- Your family’s medical history
- The type and amount of policy you choose
- Your occupation and the level of risk involved
The good news is that many of these factors are within your control. Let’s explore how you can smartly manage them to keep your insurance premium affordable.
1. Buy Life Insurance Early Age Is the Biggest Factor
The single most effective way to lower your life insurance cost is to buy it early.
Insurance companies calculate risk based largely on age. The younger you are, the lower your health risks and therefore, the cheaper your premium. When you’re in your 20s or early 30s, your chances of developing serious illnesses are relatively low, so insurers consider you a “low-risk” policyholder.
This means that a 25-year-old might pay 40–50% less premium than a 40-year-old for the same policy coverage.
For example:
If a ₹1 crore term insurance plan costs ₹8,000 per year at age 25, the same plan could cost over ₹15,000 annually at age 40.
👉 Pro Tip: Use an online life insurance calculator to compare premiums for different ages and coverage amounts. You’ll see how dramatically the cost increases with every passing year.
In short, the earlier you buy, the more you save.
2. Maintain a Healthy Lifestyle for low insurance premium
Your lifestyle choices play a major role in determining your premium. Insurance providers assess whether your habits increase your chances of developing lifestyle-related diseases such as hypertension, diabetes, or heart problems.
To enjoy lower premiums, adopt a lifestyle that supports long-term good health.
✅ Here’s what helps:
- Quit smoking and tobacco use – Smokers are charged higher premiums (sometimes up to 50% more) due to the elevated risk of cancer and heart disease.
- Limit alcohol consumption – Excessive drinking can damage your liver and raise health risks, leading to higher premiums.
- Exercise regularly – Even simple activities like walking, yoga, or cycling help maintain healthy body weight and heart health.
- Get enough sleep and manage stress – Chronic stress can lead to lifestyle diseases that insurers consider risky.
By staying active and disciplined about your habits, you’re not just improving your health you’re also keeping your life insurance premium under control.
3. Keep an Eye on Your Body Mass Index (BMI)
Your Body Mass Index (BMI) is another critical factor insurers consider when calculating your premium. A higher BMI often indicates being overweight or obese, which increases the likelihood of health complications like diabetes, heart disease, or joint problems.
During the mandatory medical examination, if your BMI is above the normal range (18.5–24.9), your premium is likely to be higher.
Insurance companies prefer policyholders who have a balanced body weight because it signals better health and lower claim risk.
✅ Here’s what you can do:
- Maintain a balanced diet rich in fruits, vegetables, and whole grains.
- Avoid junk food and processed sugar.
- Exercise at least 30 minutes a day.
- Go for annual health checkups to monitor your BMI and overall health status.
A healthy BMI not only keeps you fit but also directly helps you secure a lower life insurance premium.
4. Understand the Impact of Your Medical and Family History
Your medical history and that of your immediate family can significantly influence your insurance premium.
Insurance companies evaluate whether you or your family members have suffered from chronic or hereditary illnesses such as:
- Heart disease
- Diabetes
- Cancer
- Kidney disorders
If these conditions are present in your family, the insurer may consider you at higher risk and charge a slightly higher premium.
While you can’t change your genetics, you can control your lifestyle to minimize risk. Regular health screenings, following a nutritious diet, avoiding tobacco and alcohol, and staying active can make a real difference.
✅ Bonus Tip:
Some insurers offer wellness programs or discounts for maintaining a healthy lifestyle. Participate in these programs and submit your health data regularly it can help reduce your premium over time.
5. Choose the Right Type of Policy and Coverage
Your policy type and sum assured are major determinants of your premium amount.
In general, policies with higher coverage or shorter terms tend to have higher premiums. Similarly, plans with additional riders like accidental death or critical illness benefits will cost more.
✅ How to choose wisely:
- Avoid over-insuring: While it’s important to have adequate coverage, buying an unnecessarily high sum assured increases your premium without adding much value.
- Go for term insurance: Term life insurance is usually the most affordable and straightforward option, providing maximum coverage for the lowest cost.
- Select longer policy terms: Opting for a long-term policy helps lock in low premiums at your current age.
- Compare multiple plans: Use online comparison tools to check features and costs before finalizing a policy.
Choosing a policy that matches your financial goals and life stage ensures that you pay only for what you truly need.
6. Review and Update Your Policy Regularly
Many people buy a policy and forget about it. But reviewing your insurance coverage periodically can help you avoid unnecessary costs.
Your life situation income, dependents, and financial goals changes over time. By reviewing your policy every few years, you can adjust the coverage amount, remove unneeded riders, or switch to a better plan.
If you’ve improved your health for instance, quit smoking or lost weight you can even renegotiate your premium with the insurer or port to another policy that offers a lower rate.
Keeping your policy aligned with your current lifestyle ensures both affordability and adequate protection.
Final Thoughts
Life insurance is one of the most important financial tools you’ll ever invest in. It’s not just about protecting your life it’s about protecting your family’s future.
The key takeaway? Don’t delay. The earlier you start, the more you save. Combine that with a healthy lifestyle, a balanced BMI, and smart policy choices, and you’ll be able to lock in a low life insurance premium that fits comfortably into your budget.
Just like Ramesh Kumar realized, the best time to buy life insurance is now.
Quick Summary: 6 Ways to Keep Life Insurance Premiums Low
- Buy early – Age is the biggest premium saver.
- Adopt healthy habits – Avoid smoking, excessive drinking, and inactivity.
- Maintain a normal BMI – Healthy weight = lower risk = lower cost.
- Be aware of medical history – Manage your lifestyle to offset family risks.
- Choose smartly – Pick a plan and coverage that match your needs.
- Review regularly – Update your policy as your life changes.