How to get the cheapest premium on term insurance?

A life insurance is an inevitable aspect of the protection of your loved ones. Life could become unpredictable and if you ever have to leave your family behind, a life insurance will protect them from a financial crisis.

A life insurance is considered to be the most affordable form of insurance. Of which, a term life insurance is the cheapest.

What is a term life insurance?

Term insurance’s meaning is, as the name suggests, a life insurance for a fixed term. Traditional life insurance policies come with two aspects – a life cover and an investment aspect. At the same time, a term life insurance is only meant for a life cover and hence it is even more affordable.

Also, term insurance policies tend to have a higher insured sum compared to traditional life insurance policies due to the same reason. On the other hand, at the end of term, a term life insurance lapses and no money is paid back to the insured who survived the term, unlike in a traditional life insurance policy.

How to save on term insurance?

Saving on term insurance means saving on premiums. Even when a term insurance policy is considered very affordable, there are ways you can save even more on them. Let’s see how-

  • By buying a policy at a young age – At a young age, you tend to be healthier, and the risks associated with your life tend to be fewer. As far as insurance companies are considered, this means that if you get a term life policy at a younger age, the chances of someone claiming that insurance policy is less. This makes term life insurance policies very affordable for people at a younger age.

For instance, according to term insurance calculator, for a person who is 20 years old, a term life cover of Rs.50 lakh up to 60 years of age would cost a minimum of Rs.206 per month.

At the same time, if you are 30 years old, the same coverage would cost you more than Rs. 304 a month.

When you are 40, the monthly rate climbs up to a minimum Rs.457 a month and at the age of 50, the same coverage would cost you a minimum of Rs. 871 per month.

Age Coverage up to Coverage till the age of Minimum monthly premium
20 Rs.50 lakh 60 Rs.206
30 Rs.50 lakh 60 Rs. 304
40 Rs.50 lakh 60 Rs.457
50 Rs.50 lakh 60 Rs. 871
  • By adding a rider that would help you take advantage of your young age – If you happen to take your first term plan at a young age, you could take advantage of that by adding a guaranteed insurability rider. This rider ensures renewal of your current term life policy without the need of a medical check up at the time of renewal. This way, you can make use of your prime health at a younger age and get term plan with a lesser premium.
  • By opting for joint insurance – If you are a couple, you could opt for a joint insurance that will replace two term insurance policies with one. Of course, the term insurance premium of a joint term insurance plan would be higher than an individual term plan, but it tends to be lesser than the total premium of two separate term life policies.
  • By comparing plans – Using resources like online term life insurance calculators you can calculate and compare different term life insurance plans and choose the one that is more affordable for you.

Is cheapest term life insurance the best?

When it comes to term life insurance policies, the first priority should be to give adequate protection to the family. Your term life cover should be able to protect your family from financial pitfalls and should help them stay afloat. If affordability is an issue for you, it is advisable to choose a plan that is balanced in terms of protection and premium cost.

How to buy affordable term life insurance?

Online term life insurance plans tend to be the most affordable. When you buy directly from the insurance company website, you can cut down on the broker fee.

Moreover, most insurance company websites have resources and advisory that can help you choose what suits you the best. Go to an insurance provider website and buy a term life plan today!

What is your reaction?

In Love
Not Sure

You may also like

Comments are closed.

More in:Finance