When it comes to ensuring the financial safety of your near and dear ones, term insurance is undoubtedly the best option. It is cost-effective and helpful, above all else. Yet, you should make sure that you’re paying a suitable price for your policy. How do you ensure this? Here’s the lowdown below.
1. Begin early in life
One way to ensure lower premiums is to purchase your policy early on in life. Insurance companies look at your age and medical condition while calculating premiums. Younger and healthier people will always get lower premiums for comparatively higher coverage amounts. Thus, it is the best time to buy a plan if you are in your 20s or 30s. The best part is that you can get sufficient coverage for a longer duration, and that too by locking in a lower premium amount.
2. Obtain Suitable Coverage
Whenever you purchase term insurance, it is vital to ensure that you get suitable coverage without any over-insurance aspects. You should aim for sum assured amounts that meet the financial needs of your family properly. The usual rule is to get coverage of at least 10-15 times of your yearly income. Work out how much your family may require in the future and also add current liabilities and other goals like higher education. Subtract the figure from your assets and then you will find the amount that you will need as your coverage.
3. Stay as Healthy as Possible
Whenever insurers calculate premiums, they always check whether you have lifestyle habits like smoking or any pre-existing medical ailment. These are people who have to shell out higher premiums. People leading healthy lives without ailments will pay less. Avoid smoking and frequent liquor consumption, work out regularly, and consume a healthy diet. It will help you save money on premiums while buying your term insurance plan.
4. Compare Policies
India has many term life insurance options available with varying features and benefits. Therefore, it is important to compare all the different types of policies available. Use online aggregators to match premiums, coverages, features, and benefits offered by various insurance companies. By comparing, you can make sure that the term insurance you are selecting offers the best deal for the premium. So be sure to shop around.
5. Pay Premium Annually
Most Indian insurers offer the choice of paying premiums monthly, quarterly, or yearly. Although paying in instalments may seem less hassle and pocket-friendly, an annual payment is actually cheaper and will save you money in the long term.
Conclusion
Looking for a lower premium on term insurance does not have to mean that you have to compromise on lower coverage and lacking policy benefits. By following the given tips, such as starting the policy when young, staying healthy and comparing policies, you can enjoy peace of mind without burning a hole in your pocket. After all, the aim is to secure your family’s future at the most favourable rate for you.
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