4 Things You Must Do to Minimize Your Term Plan Premium

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A Term insurance plan is an essential addition to your financial portfolio as it offers unmatched protection against life’s contingencies. The term plan premium is also lower than other life insurance plans while it provides financial coverage for accidental disability and critical illness treatment expenses (in the form of riders).

Reputed life insurance companies offer a low term plan premium and a hassle-free claim settlement process. You can also use a term insurance calculator to choose a term insurance plan that provides the lowest possible premium payable for significant coverage. Here are a few things that you need to keep in mind to minimize the term plan premium payable.

1-Buy Early

Term plan premium depends upon the age at which you buy as the possibility of having critical diseases, or similar contingencies is low. Moreover, lower premium amounts also have a higher sum assured. For instance, if you purchase a term plan after 50 years of age, the applicable term plan premium may increase, while the coverage amount decreases. Thus, it is advisable to buy a term insurance plan as early as possible to avail of the lowest possible premium payable. 

2-Calculate Premium Before Buying a Plan

You must make use of a term plan calculator to determine the right term plan premium for the desired coverage. A term plan calculator helps you estimate the best possible coverage based on your needs and its corresponding term plan premium payable. You can also try different combinations of coverage and rider options to assess coverage as per your requirements. After calculating the relevant details, you may proceed to purchase a term insurance plan that offers the desired coverage at a lower term plan premium.

3-Compare Plans

Comparing different plans is essential to know your best suitable option. You may not want to choose any policy in haste and face inconvenience later. Term insurance plan variants from reputable life insurance companies enable you to make a prudent buying decision after comparing the different features and benefits of available term insurance plans. 

You can compare insurance plans based on their term plan premium, claim-settlement ratios of the insurer, ease of buying, customer support, and claim settlement process. Comparing term insurance plans not only help you choose a policy that best suits your requirements but also ensures that you have the best possible coverage at a cost-efficient term plan premium. 

4-Maintain a Good Lifestyle

The Term plan premium payable also depends upon your habits and lifestyle choices. Usually, the term plan premium is higher for an individual who smokes or has a pre-existing lifestyle health issue such as diabetes. Subsequently, the coverage offered by the term insurance plan is lower for smokers. Thus, you need to maintain a healthy lifestyle to stay fit but also avail of lower term plan premium payable for your insurance coverage.

Bonus: Here is How You Can Use an Online Calculator

A term plan calculator is a tool specifically designed for calculating premiums to get the desired coverage amount. It will allow you to adjust the sum assured as per your current financial status and future needs.

Step 1: Enter the required information such as your name, email id, date of birth, gender, annual income, and smoking preferences. 

Step 2: Choose your desired life cover along with the premium payment option. You also have the option of selecting the duration of term plan premium payment, and for how many years you want to get term plan protection – press enter.

Step 3: You can now add various add-ons or rider options to your basic term insurance plan to enhance coverage.

Step 4: You can see your term plan premium summary to try different combinations for lowering it.

Using an online calculator to calculate your term plan premium is beneficial for the following reasons: 

  1.  It helps in saving time and lets you know the value of the term plan premium beforehand. You can also try various combinations to get a suitable cover and sum assured.
  2. There are various plans available online with many options. A term plan calculator helps in comparing different term insurance plans, including adding the rider options to make the basic cover comprehensive.
  3. Many companies deal with their customers online and offer various discounts. Using a calculator lets you know the term plan premium beforehand with additional covers. While buying the policy online, you can avail of multiple discounts to save extra.

The term insurance plan variants offered by reputable life insurance companies such as Max Life Insurance offer significant financial coverage against life’s uncertainties at cost-effective premiums payable. Moreover, the efficacy of these insurance plans is further strengthened by a robust and hassle-free claim settlement process. You can avail of quick claim amount disbursals and around-the-clock support by having all the documents for term plan ready and in place at the time of claim filing

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