To secure financial security for your family in case of an unfortunate death, purchasing a term insurance plan is the right way to go forward. With the complexities and uncertainty of life increasing daily, knowing the right financial tools to pick for a better future for your family and yourself is necessary.
Several term insurance plans are available in the market today to suit different needs and requirements of policyholders. Moreover, comparing them has never been easier with the term insurance calculator available online for quick and hassle-free premium calculation. But how can you pick a term insurance plan at affordable rates? What are some factors to consider when choosing a term insurance plan?
Let us discuss all about affordable term plans below.
Why Choose Term Insurance Plans?
Anyone looking for financial stability should go for term insurance plans. They are easy to understand and cost-effective compared to other life insurance plans. For a better understanding, let us discuss why you should choose term insurance plans.
Affordable
One of the prime reasons people choose term insurance is its affordability. For a lower premium, you get protection via death benefit. You can make these plans even more affordable by purchasing them early in life. Since age is one of the factors affecting your term insurance premium, the earlier you purchase the policy, the better.
Flexible
You can choose the policy tenure, payout option, and premium amount according to your budget and requirements. This increases flexibility to align your insurance plan with your financial objectives. You can also customise your term insurance plan with riders to enhance your coverage.
Better Financial Assistance
Term insurance plans provide your family with financial support during untimely death. The lump sum amount provided can be utilised for covering debts, end-of-life expenses, education expenses for your children and much more.
How to Make Term Insurance Plans More Affordable?
Multiple factors impact the premium amount for term insurance plans. These factors include income, age, coverage required, etc. Here are some ways to make term insurance plans more affordable for the policyholder.
- Start Early: Given that age is one of the most important criteria for determining the premium amount for a term insurance plan, purchasing early in your life is the right decision. For instance, the premium you will pay as a 25-year-old will be much less than the one you pay if you are 40 years or above.
- Compare and Decide: Instead of jumping on the first available option, comparing plans of several insurance companies before choosing is always better. This is essential as insurance providers may offer various features and benefits at different premiums.
- Improve Health: Your current health condition can significantly impact your term insurance premium. To avoid higher premiums, you should look at maintaining a healthy weight, exercising regularly, altering lifestyle habits by reducing or quitting tobacco products, limiting consumption of alcohol, and reducing stress levels.
- Buy Online: Compared to offline term insurance plans, buying online can be more advantageous. The prime reason behind this is the convenience and flexibility of purchasing online without the involvement of multiple intermediaries, reducing the additional costs of agent fees, documentation support, etc., therefore reducing premiums.
Conclusion
Providing your family with financial security even in your absence is essential. Term insurance can fill this gap. However, choosing the best-suited plan at affordable rates is crucial. Considering the tips mentioned above to make your term insurance more affordable can be a win-win situation for you and your family.