The term life insurance plan acts as a safety net for your family in case of an untimely death of the policyholder. Since these are long-term policies, often purchased for 20 to 30 years, the premium needs to be affordable.
There are certain ways to keep the premium amount low or reduce it, and we will discuss them in this blog. The best term plans are the ones that fulfil your objective and are yet affordable.
There is another type of term insurance plan that pays you a portion of your total premium amount at the end of the policy, even if you survive the period. These are term insurance plans with return of premium.
How to Decrease Term Insurance Premiums? — Quick Tips
1. Start investing at an early age.
The earlier you start investing in term life insurance, the more benefits you can reap from your plan. The best part is that you may have to pay less term life insurance premiums if you buy a term plan at a young age.
Here is an example.
A person who opts for a term insurance plan in his 20s and another person who opts for a term plan in his 30s, irrespective of whether they opt for the same plan, the latter would be required to pay a higher premium. It is because older people pose more health-related threats as compared to younger people.
2. Choose the yearly premium payment option
Though monthly or half-yearly premium payment feels like an affordable option, the payments are made in steady succession, dividing the premiums into smaller sums. But if you check, this premium payment option can add up and be a larger sum with other monthly charges. Therefore, it is best to pay a yearly sum. The amount may seem a lot, but it will not entail any frequent transactional charges that monthly payments might do.
3. Focus on your health
The strategy is simple: the healthier you are, the lesser premium you need to pay.
People who are prone to any illness or related to a stressful life environment or are addicted to habits such as smoking or drinking are likely to pay more term insurance premiums. So, if you can quit these bad habits, or do not start in the first place, you may enjoy a discounted premium.
4. Online insurance
Opting for online insurance can be highly convenient compared to offline as it is time-saving and doesn’t add up any further overhead costs. Further, you can simply compare policies online with different insurance companies and get the best deal.
Online insurance also creates more transparency by providing easy access to policy documents, terms and conditions and customer reviews. Popular online term insurance plans like the Tata AIA term policy even offer expert guidance on choosing the right sum assured, keeping in mind your objectives and affordability.
Conclusion
With the above strategy, you can easily reduce your term life insurance premium amount and save a lot of money in the long run. Following the steps shared in this article will help you secure the best protection you need for your family members at an affordable cost. Do your due diligence before buying term insurance, because it is a must-have when looking for reliable financial security for your family.
