Amongst the several life insurance policies out there, term insurance is the most cost-effective plan you can avail. These plans charge you a fixed premium for the entire plan tenure, provide better premium rates to non-smokers and avail long term cover at a very economical cost. But in the sea of insurance providers a consumer normally wants to finalise on a plan that gives him the widest coverage at the best possible cost. Here's how you can find one
Buy a policy at a young age:
With term insurance policies, the older you are the higher is your premium. So a 25 year old consumer would pay less for a ₹ 50 Lakh policy for tenure of 20 years as compared to a 30 year old consumer. This is because at a young age the consumer is at the peak of his health and the risk to his cover life then is less. But as the consumer ages, there are higher possibilities of him contracting diseases and the risk of insuring him increases, so the premium accordingly is set higher.
Checkout plans by most life insurance providers, there are chances they may vary in price, features, etc. Compare these plans for the premium amount they charge and select a plan that suits your budget and requirement.
Buy your policy online:
Buying a policy online may fetch you a better premium rates as compared to getting it offline. This is because the cost of selling the plan online to consumers is much less than distributing them offline. Savings on the maintenance front too, makes it easy for insurers to offer discounts on the online premium.
Don't use tobacco:
Your health plays a major role in determining the premium while availing a term insurance plan. The level of nicotine in your blood also determines how healthy you are. Smokers are considered unhealthy by the insurer for the simple reason that they are more likely to encounter severe health conditions that could also lead to death. Also, tobacco consumption of any other kind like chewing tobacco, snuff etc. is counted as smoking. Since the risk of covering their life is high, the premium amount charged to them is more. So stay tobacco free.
Don't over insure yourself:
Many times people overestimate their insurance requirement. Sure you'd want to have more than enough coverage rather than being under insured, but if budget is a major constraint you may have to consider coverage as per your affordability.