The reason for the rising popularity of term insurance plans is that they offer a significant life cover at affordable pricing. A term life insurance policy offers a sum assured that the insurance provider pays to the policyholder’s nominees upon making a successful claim.
Term policies do not have any maturity benefit and pay the sum assured if an unfortunate event results in the insured’s death. This is why term plans are more reasonable compared to other life insurance policies. The insurance company decides the premium depending on the cover value, your age, medical history, and other features of the policy. You have to pay it regularly to keep the term policy active during its tenure. You can use a term insurance calculator to find out the policy’s premium.
Even though the premium is low, you can get it at a much more economical rate. Here are a few ideas that you should know:
- Customize the policy
When purchasing term insurance in India, you have to first decide its duration. You can get a term policy for only a particular period, and the insurance provider covers your life only during that time. The longer the tenure is, the higher is your premium. Hence, you can save on the premium by ensuring that your tenure is not more than what you require.
You also have to ascertain how much cover you need while buying a term plan. The cover value or sum assured should be enough to take care of your family’s financial needs in your absence. The premium largely depends on the sum assured. You can set the cover value as per your needs and budget to get a pocket-friendly premium.
- Maintain a healthy lifestyle
Another aspect that insurance providers consider before finalizing the premium is your health. When buying a policy, you may have to submit your medical history and opt for certain tests. If you have any pre-existing condition, such as diabetes, heart issues, or high blood pressure, the insurer will set a high premium. However, if you are a healthy individual, your premium will be significantly lower.
This is why it is essential to maintain a healthy lifestyle for getting a good deal while buying a term life insurance policy. You can stay fit bybeing active, exercising regularly, and following a healthy diet. By doing all this, you can get a term policy at a cheaper premium and lead a longer life.
- Avoid addictive habits
While applying for a term life insurance policy, you must let the insurance provider know if you smoke or consume alcohol. As these habits can shorten your life, insurance companies treat smokers and drinkers as risky individuals, which results in a higher premium. So, it is wise to not develop any addictive habits or quit them before buying a term policy.
If you are a smoker, do not hide it from the insurer. If you do so to get a low premium, it may ultimately result in a rejection when your nominees submit a claim, and the insurer learns the truth. Ensure that the insurance company has no grounds for denying the claim application in your absence.
- Buy the term insurance policy online
Purchasing term insurance through the offline method involves additional costs, such as administrative fees and agent’s commission. So, buying a term life insurance plan from the insurance provider’s branch office can be expensive. When you buy term insurance policies online, it eliminates the need for a mediator or administrative expenses. Hence, online term plans come at a lower premium.
To buy the policy online, you need to visit the insurance provider’s website and apply for a term plan. You can choose the sum assured and tenure as per your requirements while applying. You can also use a term insurance calculator to determine the premium before deciding the ideal policy for your needs.