The Life Insurance Policies are the must
have term plans and are crucial in today’s world as it gives you the financial
protection against the unforeseen health situations like sudden illnesses or
accident related treatments. Though the term plan gives an array of benefits
like protecting you and your family from different health conditions based on
the plan chosen and gives the tax benefit, still these come with an inevitable harder
side of it, the premium– It is the expense towards protection of the family.
Premium
is the undeniable part of a term plan and is included in the family budget.
Term plans are a no-frill product that
insures you for a predetermined period and ensures the financial security of
your family in case of unexpected demise of you during the term of the plan. There
are certain factors like your age, genetic disposition and your gender which
play a role in determining your premium by the insurance companies.
However, there are ways to keep the premium
lower without compromising the coverage benefits.
·
Determine your coverage requirement–Selecting
a term plan that optimizes your budget and the coverage requirement is very
important. Taking a higher coverage will cost you higher premium and many a
times basic coverage fits the requirements for most of the people.
·
Avoid unnecessary riders or add-on –
Since Riders and add-ons for extra coverage of any kind increases the premium,
evaluate carefully the additional coverage requirement.
·
Staying healthy to be eligible for lower premiums – A healthy person has less chance of getting lifestyle diseases like
diabetes and heart issues also there is less likelihood of early death.That
interprets into lower premiums charged by insurance companies for your term
plan. Avoiding smoking and drinking can save you on premium payment as
insurance companies charge extra for these unhealthy habits. Prevent obesity as
well to get the benefit on your premium.
·
Starting the term plan early in life–When
you are young and healthy, the premium is much lower and this remains usually same
until the policy term is over. Policy term could span 10, 15, 20 or 30 years.
Locking in a higher term could lock your premium to a lower amount. You will
get some flexible term plans which gives add-on cover at different stages like
marriage and parenthood requirements. These work to your benefit with lower
premium if you start those at early stage of life. Also gives the option to
increase the coverage as required.
·
Save money on Annual payment option –
Insurance companies provide flexibility of payment schedules like monthly,
quarterly, half-yearly or annual. But annual payment turns out less expensive
overall as the whole amount is paid in one shot and the company saves the
repeated administrative cost on it and pass on the benefit to the customers. If
there is no budget constraint, then go for an annual payment and save some on
your premium.
·
Buying term plan policy online – Buying
a policy online is a cost effective alternative for the company as well as for
the customers. It reduces marketing, distribution and office work of the
insurer since the customer does all the input of information. The saving that
company makes in this context passes on to customers, at least partially in the
form of reduced premium.
Term
Insurance Premium Calculator -
This is the simple and specially designed tool
that helps a perspective buyer to determine the premium amount. You can
calculate the premium of term plan that you need to pay in order to get insured
for a specified sum in case of unfortunate demise of the policy holder. In this
way it helps you to compare the plans offered by different insurers and opt for
the best suited one. To get a term plan online and to avail all the benefits of
an online policy purchase, this calculator is the most used and appropriate
tool for comparing the different insurers on a single common platform in India.
The premiums decided by the insurance
companies depend on the rating and underwriting methods of various factors and
parameters of individual companies. It is a good idea to shop for the benefits
and coverage and comparing the premium for the different term plans offered by
companies before purchasing one. Additionally, you need to compare the insurer
performances regarding their customer service records, claim settlement
procedure and timeline as well as the overall rate and reputation of the
company.
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