What is Term Insurance Premium, and How is it Beneficial?

Term Insurance

Term Life Insurance or Term Insurance for short, is a simple and affordable kind of life insurance that provides coverage for a specific time period at a fixed rate.

In order to qualify for this type of life insurance, an individual should have reached adulthood and eligibility conditions may also be met depending upon the terms set out by the insurer.

The premiums payable under such policies are not to change during their tenure, i.e., the amount to be paid as premium every month or year is fixed for a period of 10, 15, or 20 years as per the policyholder's need and requirement.

After the term insurance expires, no further coverage can be availed under it. However, one can choose to continue with an extended life plan if they wish so.

Term Policy Premium – What is it Exactly?

As mentioned above, term insurance premiums refer to a fixed monthly or yearly payment that a person needs to make in order to avail this type of protection from his insurance provider against all possibilities of untimely death during the tenure of their policy.

This means that rates payable under such policies are not subject to change over time and will remain unchanged till the end of the policy term.

The premiums may vary among insurance providers, and that is why it's best to compare term insurance premium quotes before investing.

Benefits of Paying Term Insurance Premiums Over a Longer Duration

Term life insurance has been specifically designed for people who do not need protection throughout their whole life or those whose children are financially capable of taking care of themselves without their support.

These policies have a fixed maximum limit known as the sum assured, which remains unchanged during the tenure of the policy, along with an additional feature called Level Term Insurance Premiums wherein rates payable under them remain constant over a period of time instead of increasing at regular intervals.

This means that a higher amount is paid towards the premium till the initial years of a policy, but in later years it is paid to depend upon the rate set by an insurer which remains constant.

This makes it affordable for younger people to buy term insurance and also protects them from any future price hikes.

Sum Assured or Term Insurance Premium – Which One Is Higher?

This depends upon various factors such as age, health condition of the applicant, the sum required, the profile of the individual, etc.

In general, individuals with good health will have to pay a lesser premium amount compared to those who are not in their best shape or suffer from some ailment or disease that can increase risk factors associated with a life insurance plan, whether term life insurance policy or an endowment plan.

Since shorter duration plans with lower premiums payable during initial years are available in the market, it is always advisable to buy term insurance when you are young and healthy.

Term Plan Premium

It is a one-time investment that offers you lifelong protection against any eventuality, provided you renew the policy at the end of its tenure.

In case of an unfortunate incident, your loved ones will be financially secure and can easily manage their expenses without worrying about the future.

In other words, it refers to a fixed monthly or yearly payment that a person needs to make in order to avail of this type of protection from his insurance provider against all possibilities of untimely death during the tenure of their policy.

This means that rates payable under such policies are not subject to change over time and will remain unchanged till the end of the policy term

The premiums may vary among insurance providers, and that is why it's best to compare term insurance premium quotes before investing.

Suggested Plans

Bharti AXA Life Guaranteed Income Pro

  • A Non-Linked, Non-Participating Individual Life Insurance Savings Plan
  • 4 Income options to choose
  • Guaranteed 10% Addition of Annualised Premium (as per the terms and conditions of the policy)
  • Get all your premiums back at the end of the payout period under Long Term Income and Deferred Income variants
  • Flexibility to choose premium payment term or policy term

Bharti AXA Life Shining Stars

  • Non-linked, non-participating limited pay endowment Life Insurance plan
  • Designed to take care of the financial needs of your child.
  • Flexibility to opt between 2 Maturity Payout Options
  • Flexibility in Policy Term/Premium Payment Terms
  • A great short-term investment option for a child insurance policy.

Bharti AXA Life Super Series

  • A non-linked non-participating individual life insurance savings plan
  • Range of investment duration and returns
  • Guaranteed money back benefits (provided policy is in force and all due premiums have been paid)
  • Income tax benefits (as prevailing tax laws in India that are subject to changes)

Get Quote