Easy Ways To Get Affordable Term Life Insurance?
First and foremost, good move trying to plan your future and safeguard the financial security of your loved ones once you are gone. Second, hats off on doing your research. A lot of term insurance buyers jump into “cheap term insurance” plans without doing any research and then complain later, creating a bad name for the product.
In this post we are going to discuss strategic moves that investors can use, to make term insurance policies cheaper. But first things first:
What is term insurance?
Term life insurance provides coverage for a predetermined amount of time in return for an agreed sum to be paid by the policyholder, known as the premium.
Some term insurance policies will offer coverage against mortality (which is a euphemism for “only if you die”) and others will pay back the sum assured at the end of the policy term or when the term insurance plan matures.
It is important to check the terms and conditions and read the offer document carefully before you actually sign up for the term plan and pay your first premium.
Now on to how you can get the best term insurance plan at an affordable premium.
6 ways to get the best term life insurance rates
- Start early: Insurance premiums become more expensive as you grow older because the insurance companies try to pack in the same amount of investment on your part from fewer premiums. Additionally, the chance of you making a claim very soon is rather high as you age. For example, the insurance company bears a higher risk of you making a claim in five to ten years, when you are in your fifties, versus, when you are in your twenties. As a result, younger term insurance policy buyers get more affordable deals on premiums. Consider kicking off your term insurance policy in your thirties, and choose the policy term carefully based on whether or not you get back your capital if you survive the policy term.
- Cultivate good habits: Smokers and heavy drinkers tend to have to shell out higher premium amounts for their term life insurance policies. Similarly, people with health issues will always have to pay a higher premium. Stay healthy by keeping fit, especially before you sign up for your policy since people will usually undergo some medical tests. Exercise regularly, sleep enough and eat healthily. Steer clear of vices like smoking and heavy alcohol consumption if you want to keep your insurance premium low. Don’t even think about lying about such things because (and we apologize in advance for being morbid) if you do happen to meet with your demise during the policy term, the insurance company will go through your medical paperwork with a fine-tooth comb. And if you are found to have lied while signing up, you forgo your entire sum assured.
- Select the cheapest payout frequency: For a larger proportion of term insurance policies, annualized premiums are likely to prove most cost-effective when you are looking for a cheap term insurance plan. Either way, add up the premiums and check what your total comes up to for annualized versus monthly or quarterly premiums. Don’t forget to add up taxes and processing charges and whatever other charges – get an all-inclusive amount and make a comparison. In all likelihood, the annual premium will be more affordable in the long run.
- Look for a term plan with a return of premium: Some insurance companies offer to pay back the premium paid after the conclusion of the premium payment term. Many insurers like this type of deal, but do ensure that you are not paying a much higher premium upfront in order to avail of this benefit.
- Shop around before you sign up: Lots of people start up by trying to find out how to buy a LIC policy online but may come away with an Aviva life insurance policy because it was more cost-effective (both names are examples only). The point we’re trying to make is that this is the benefit of shopping for insurance online – you can compare premium rates and sum assured and the terms and conditions we discussed under what is term insurance. In fact, online marketplaces like IIFL Insurance help buyers to shop for the cheapest term life insurance by allowing them to compare various brands at the click of a button.
How to buy term insurance online
Step 1: Log on to www.iiflinsurance.com
Step 2: Choose term insurance
Step 3: Compare term insurance offered by different companies
Step 4: Read the terms and conditions carefully
Step 5: Select the most affordable one and pay up.