27th May 2024

5 Tips to Get More Value Out of Your Term Insurance 

If you are worried about the financial security of your family after your absence, then investing in a life insurance plan should be your priority. 

Out of the different life insurance plans, it is advisable to consider investing in a term insurance plan. If you are curious to know what is term insurance plan, we are here to guide you about the same. 

A term plan is the most affordable type of life insurance plan. It covers the risk of the policyholder’s death and provides high coverage at a cost-effective premium. These features make the term plan a popular investment alternative, when it comes to securing your family’s financial well-being, in case of an unfortunate incident during the policy tenure. 

Here are some of the tips to help you get more value out of term insurance and reduce the cost of premium.  

  1. Start early as premiums surge with growing age

Age plays a significant role in influencing your term plan’s premium. This is because with growing age, the chances of being prone to chronic diseases rise, which increases the risk of an untoward event. Your term plan’s premium will be significantly high at an older age compared to the cost that you bear in your 20s or early 30s. You can use a term plan premium calculator to find a suitable policy at a competitive cost to meet your family’s financial goals and needs.

  1. Start living a healthy life

Your health is one of the factors that can influence the premium of your term plan. A healthy lifestyle reduces the risk of mortality. If you have a robust immune system, you are less likely to be prone to chronic diseases. If you are fit, the risk of blood pressure, diabetes, cardiovascular problems, and hypertension drastically reduces. At the same time, smokers and alcoholics are more prone to such health problems. Therefore, the premium towards the term policy for smokers is approximately ten times higher than that of non-smokers. 

  1. Search online extensively for best deals 

It is always advisable to do comprehensive online research to find the best offers on term insurance premiums. You can also use a term plan premium calculator to compare and find the best plan. As there are numerous insurance companies in the market offering various deals and discounts, finding the right plan could be overwhelming. You can buy term insurance via the traditional offline approach or use the modern way of purchasing it online or via OTP. The premiums offered by insurers online are quite lucrative as compared to the conventional approach. It is because there are no insurance intermediaries involved, and you are directly dealing with insurers. 

  1. Avail discounts on annual premium payment 

Due to financial constraints, it may not be possible to pay the premium annually. However, many insurance providers offer discounts on annual payments that can help you get cheaper premium rates.

  1. Review your financial goals and insurance needs periodically

The financial goals tend to change with time. Therefore, you must analyze your objectives and align your term plan’s sum assured according to these aspirations. For instance, you may have taken a term plan at an early age before marriage. However, after marriage, the financial goals change eventually if you have any kids or wish to buy a new house. So, you will need a high cover. Thus, with changing goals, your sum assured also needs to change. 

Getting more value from your term insurance plan is not about just buying it at a reasonable premium. You need to make sure that the plan offers customer-friendly benefits. Consider adding suitable riders. Although they may come at an extra cost, they will prove handy in the long run.  

Term insurance provides the much-needed financial security to your family when you are not around. So, selecting the best plan to meet the financial goals and needs is crucial. Opt for the most suitable plan from a reputed insurance company and lead a peaceful life.