A term plan can be undoubtedly the purest and the cheapest form of insurance amongst the rest of the insurance products such as endowment policies, money-back policies, and so forth. A term policy is a pure protection plan that can offer financial protection to your loved ones in your absence. When you buy a term policy, your family members can receive a death benefit to maintain their standard of living.
Today, a term plan can provide you with a combination of death benefits as well as survival benefits. The survival benefits can allow you to lead a comfortable retirement period or let you achieve your post-retirement goals such as exploring new cities, pursuing interesting hobbies, and so forth. Since a term policy can offer both the benefits, you might assume that it might have a higher premium value. If you feel that you might be unable to afford the term insurance premium, let’s take a look below to know the top six tips that can help you to reduce the premium:
- Buy a term policy at a young age
Your age can be the prime factor of consideration to set the right premium value for you. When you are young, you might be less prone to suffer from severe health conditions such as cardiovascular diseases, kidney failure, and so forth. Since you are physically fit at a young age, your insurance company might charge you with a relatively low premium.
- Consider an online term insurance
Due to the long and complex process, many of you might not purchase a term insurance policy. To ensure your maximum convenience, a lot of insurance companies have availed their term policies online. An online term policy can be relatively cheaper than a regular term policy due to the zero involvement of the third party or an insurance agent. Moreover, you can buy term insurance plan from any corner of the world in a single click.
- Pick the right sum assured value
Ideally, the coverage that you select can determine your premium amount. Therefore, consider your financial requirement before choosing a sum assured value. If you over-insure yourself, you would automatically be liable to pay a high premium value.
- Avail the relevant riders
Riders can be an additional benefit offered to you by your insurer. Although riders can allow you to enhance your base policy, you should select it very carefully. Typically, many insurance providers can provide you with riders such as physical disability rider, critical illness rider, waiver of premium, accidental rider, and so forth.
- Choose a regular premium payment mode
Under term plans, you can choose between regular and limited premium value. While regular premium payment mode can make you pay the amount, the limited premium mode can let you pay the premium for a specific duration. However, the premium for both these modes can be different. As a policyholder, you should select a regular premium mode since it can charge you with a relatively low premium.
- Opt for a longer tenure
Term insurance can offer coverage up to a period of 40-50 years. When you select the tenure, you can be eligible to receive the coverage up to that period. Moreover, after you cross specific milestones, you can increase the coverage during the selected duration. If you select a longer coverage, your premium outflow can be low.
To sum up, term plans can be an essential part of your financial portfolio. Whether it is a regular plan with death benefit or a smart term plan with a combination of death and survival benefits, the term insurance premium can still be affordable.