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5 ways to Reduce Your Term Insurance Premiums

By Finserv MARKETS - Jan 3,2020
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Term Insurance Premium

Two third of Indians are proud owners of life insurance. However, only one-fifth of them have term insurance. The latter lack knowledge about something as basic as the meaning of term insurance. 57% of those have no clue about the sum assured of their term plan, which is a guaranteed sum that their policy promises.

Did you know that term insurance is the cheapest and purest form of insurance? It offers financial benefits to your dependents should you meet with an unfortunate incident in the future. It is highly important for you to understand what a term policy entails and how it can benefit you.

For instance, the Bajaj Allianz Life Smart Protect Goal Term Plan available on Finserv MARKETS can provide you a life cover of Rs. 1 crore and that too at a nominal price. Along with this, customers can opt for with several add-on covers.

Although you can already extensive coverage at affordable rates, here are a few tips and tricks to reduce your premium outgo:

Term Insurance Premium

Source: www.policybazaar.com

Here are a few ways you can do so:

1. Get insured early:

If you are looking to pay an affordable term insurance premium for your policy, it helps to be proactive. A 25-year-old person will end up getting the same insurance plan at a lower premium as compared to someone in his mid-30s. What’s more, the early bird can also get the same policy for a longer-term at a much cheaper price, as compared to someone who is a late buyer.

2. Pay annually:

A good tip to reduce term insurance premiums is to stay away from monthly or quarterly payments. They may be convenient in the short term since you need to shell out less money towards your policy. But when the individual premiums are added up, you only end up paying more for the same term plan as compared to an individual who chooses to make a one-time premium payment. The yearly premium may seem high as compared to what you would pay in a month, but it can save you money in the long term. Think about it!

3. Policy period:

How long you choose to stay insured can play a huge role in whether your term plan turns out dearer or cheaper for you. Policy duration is a key factor if you want to reduce term insurance premiums. A longer policy term not only provides protection for your dependents for more years, but it also gives you peace of mind that they are taken care of even in your absence. To top it off, term insurance for say 30 or 40 years turns out less costly than that for 10 or 15 years. More protection at less cost, isn’t that an incentive for you to buy a term plan earlier?

4. Stay healthy:

Are you the one putting your health on the backburner by consuming tobacco or alcohol? Or do you suffer from stress or any lifestyle disease? A healthy person without any disability and disease is more likely to pay an affordable term insurance premium for his policy. Any condition that affects your health lowers your life expectancy and hence your risk quotient increases in the insurer’s perspective, thus increasing your premium and making your term plan expensive. So be proactive towards your health.

Term Insurance Premium

Source: www.fidelity.com

5. Buy online:

An effective way to reduce term insurance premium is to purchase it online. No need to stand in long queues, wait in anticipation for loan approval and fill lengthy paperwork when you buy the Bajaj Allianz Life Smart Protect Goal term plan, online on Finserv MARKETS. Not only is it convenient to buy a term plan online, it also turns out to be more cost-effective. Just log on to Finserv MARKETS, fill in your personal details online, upload a few documents and upon verification, pay the premium. Your term plan is activated, and you are protected, without stepping away from the comfort of your home or office.

In addition to the above tips, you could also utilize this trick to reduce your financial outgo. By purchasing a term insurance policy, you can avail tax deductions under Section 80C of up to Rs.1.5 lakh, on the premiums paid toward your term insurance policy. What’s more, under Section 10(10D), the payout you receive from the term insurance policy is also tax-deductible. If you have opted for a critical illness rider, you may also be eligible for deductions under Section 80D.

Hopefully, the points detailed above have helped you understand the meaning of term insurance and how you can effectively avail comprehensive coverage with reduced premiums. Term insurance plays a huge role in securing your family’s future and choosing a term plan with reduced premiums is all the more advantageous. You now have a simple, smooth and speedy way of safeguarding your family with the affordable term insurance plan available on Finserv MARKETS.

Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522