Cheap Life Insurance
Life Insurance is very essential for a business owner to consider. It can be a huge factor in attracting and retaining employees. Also, it can help settle any claims due to accidents or mishaps at the workplace. Moreover, it can cover litigation costs.
Finding a Cheap Life Insurance
Every business owner looks for the right package of insurance policy that is both cheap and offers at least a bare minimum coverage. A business may cut down on its insurance costs by considering various factors:
Explore all the Options
There are several insurance companies in the market providing numerous plans. Some might offer additional coverage at the same cost. Other will probably offer less features for lower costs. Comparing policies online or asking as many insurance companies for quotes as possible and leveraging them against each other may lead to the extraction of a cheap life insurance deal.
Go for Group Policies
Group life insurance is one of the cheapest life insurance policies that a company can buy to insure its employees. In this, the premium amount is not calculated per employee but is same for all of them. The premium amount is very low as the policies are purchased in bulk. The premium of the policy increase after a duration of a fixed number of years, usually five. Though the insured amount in the policy is low as compared to other, but even people with a history of medical disorders can be accepted for this policy.
Pay a part of premium
Many businesses pay only a part of monthly premium of their employees’ insurance policy. The employees pay the rest of the amount themselves. Any additional benefits, addon and riders are also paid for by the employee being insured. The employee though still gets the insurance at a cheaper rate via his employer than he would have in private market.
Stick to a Single Insurance Company
Another way to ensure cheaper life plan is that you employ a single insurance provider for all your coverage related needs. These may include employee, business , assets and liability insurances and many others. You may be given a clubbed offer for all your life plan needs at a discount. Also, if you are renewing your policies from them, you may be offered a loyalty discount.
Get Tax Rebate
Various life plan policies have the provision of tax deduction for a business if the business owner pays a part of or full premium of their employees. Some of these companies, particularly in business life insurance, return the premium paid by the business for the coverage of their employees in full. Making full use of these provisions can result in obtaining cheaper life insurance for a business.
Opt only for essential cover
If you are a business owner and buying insurance cover for the employees, you can stick to policies that cover only the employee and not his family i.e. spouse or children. Don’t include any addons in the policy and you can save on the extra coverage.
Buy Directly from Company Instead of Agents
A business owner might get a much better deal if buying directly from the insurance company. The reason for this is that the life plan company won’t have to pay a commission to any intermediary or an agent.
Screen Employees for Health Problems
Life plan costs money. The amount of premium that a person pays for the life insurance policy depends on several factors. Age is a primary factor that affects the cost of the policy but it cannot be controlled. The higher the age of the policy holder, the higher will be the premium. Healthy factors, such as smoking or history of family disease drives up the cost. A healthier employee base will result in much cheaper life plans. Screen your employees for health-related issues while hiring or opt for group plans policies.
Always ensure that the company providing life plans at a cheap rate is experienced and has a good track record with claim settlement. Make sure that the company is financially stable and will settle in time. Remember, a cheaper insurance policy may lead to a very expensive settlement for the business.