Life Insurance serves as a primary instrument to reduce the risk associated with life. When we talk about life, one constant thing is risk. And as a primary provider to your family, this risk might add a burden to them once you are gone. A term insurance plan serves as a safety net, ensuring that your family has access to the needs of life while you are away. We all know family comes first, nothing else. So, it is crucial to invest in the best term insurance plan.
What is Life Insurance Premium
The premium is the first consideration when selecting the best life insurance plan. An insurer asks you to pay a certain amount periodically to maintain the insurance policy and coverage. A premium can be used for ensuring coverage and earning returns. You can get an estimate regarding the premium as many websites have the term insurance premium calculator. Various factors determine the premium, which are listed below:
- Age: As you get older, the chances of your premium getting higher is maximum. So, it is wiser to buy term insurance at an early age.
- Profession: If you work in an industry with higher risks, the premium gets towering. It includes police, pilot, politics, defence forces, etc.
- Way of Living: Each of us is associated with a particular lifestyle. Some like to consume alcohol or smoke, which leads to higher premiums as they tend to reduce your life span.
- Gender: Research tells us that women tend to live longer than men. So, the number of premiums shifts gender-wise.
- Add ons: Life insurance companies offer additional benefits known as riders. The more riders you opt for, the more the premium.
- Medical History of your Family: You can do nothing about genes, and family history is an essential factor when it comes to deciding premiums. A history of strokes, cancer, and other severe medical conditions can lead to higher premiums.
- Type of Policy: The premium rate is different for different term insurance plans. So, it is up to you which policy you feel is suitable for you.
Tips to Reduce Premium on your Life Insurance Plan
Even though buying a term life insurance plan is a must, paying high premiums can burn a hefty amount from your pockets. To make sure that your pockets stay light, we have come up with a list that will help you reduce your premiums.
- Select an Appropriate Sum Assured: Choosing the suitable sum assured is crucial when selecting the best term life policy. A perfect term insurance plan is a balance of a decent sum assured and a lower premium rate.
- Avoid Choosing unnecessary Add-ons: Even though add-ons assist in adding benefits, they do increase the amount of premium. And sometimes, unnecessary add-ons can lead to overpricing premiums that might hurt.
- Buy Life Insurance at an Advanced Age: Insurance companies decide the amount of premium based on your age. The younger you are, the less will be the premium. The reason is simple- your life expectancy is more and you are prone to fewer risks. It is also one of the most effortless strategies to lower rates.
- Compare Life Insurance plans: Many life insurance plans are available. Every plan is made for a reason and you need to find out which is the best term insurance plan for you. It will lead you a step closer in your quest to lower your premiums.
- Buy Life Insurance Online: When looking for online life insurance plans, you will see that it is cheaper. The cause for this is the lack of agents and their commissions. Also, since there is enormous competition among online aggregators, you tend to get lower premiums.
- Healthy Lifestyle: Having a healthy lifestyle is crucial if you want your premium on the lower side. Insurance firms typically provide reduced premiums to those who are not indulged in alcoholism or smoking. These addictions certainly lower your life span and thus, companies tend to charge more premiums.
- Occupation: Every occupation comes with a risk. For example, if you are in the defence forces, your risk of being in danger is more than a person working in a bank. So, the amount of premium is also higher for hazardous jobs.
Buying life insurance has become a cakewalk, and we, D2C Insurance Broking Private Limited (“RenewBuy”), focus primarily on it. Here are the procedures that will assist you in buying the most worthy life insurance plan.
- Visit Renewbuy.com
- Scroll down and choose the "Life" category.
- Fill in all the relevant details like DOB, Gender, Address etc.
- The next page will show you the various insurers' Life Insurance plans in India.
- You can select one of the plans and move forward with the payment.
- Once the payment is made, the policy document will be sent to your registered email address.
While you choose the best term insurance policy, it's better to have a plan that does not overburden you with the premium. There is no use in devising a policy that will not be fruitful in the long term. It's best to check the various factors that are mentioned in the post that will assist you in better decision making.
Question 1: - I just started working. Is now a great time to buy life insurance?
Answer: - Yes, it is the right time to buy a term insurance plan as you are young and many factors that affect the insurance premium will be eradicated.
Question 2: - Is it worth buying online life insurance?
Answer: - Absolutely! When you buy life insurance online, you get to compare the best term insurance plans on the internet. Also, you get a cheaper rate of premium due to healthy competition.
Question 3: - How to get an estimate of the premium in a term insurance plan?
Answer: - Various websites offer term insurance premium quotes. All you need to do is check the website and use the term life insurance premium calculator to get an estimate.
Question 4: - Why does life insurance premium differ from person to person?
Answer: - Life insurance companies have a particular method of calculating the insurance premium. If your age is more minor, you are more likely to pay a lower premium than an older person. Also, premium differs if you have a healthy lifestyle. There are a few more factors that insurance companies take into consideration.
Disclaimer: The information published in this article is for the reader′s reference only. The content of this information is to provide an overview of your life insurance needs and should not be relied upon for personal, medical, legal, or financial decisions; you should consult an appropriate professional for specific advice. The Company makes no representations about the suitability, reliability, timeliness, and accuracy of the information, services, or any other items mentioned on this subject for any purpose whatsoever.
*Standard Plans Terms and Conditions apply.