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8 Ways to Reduce Your Term Insurance Premiums

Term insurance is one of the best investment options as it financially safeguards your dependents in case something happens to you. As it’s a pure risk cover, you can avail affordable premium rates when compared to other life insurance plans. But, what if we told you there is a way to reduce the premium price even further? Let us take you through 8 ways of reducing your term insurance premium without compromising on the coverage!

  • Get Term Insurance Early in Life

One of the most lucrative ways of availing an affordable term insurance plan is by purchasing it early in life. This is because the younger you are while buying term insurance, the lower is the premium price. In your 20s, you are likely to be healthier without any medical issues when compared to a person in their mid or late 30s.

With this, you can conclude that term insurance premium increases with age and hence, it is best to buy it at a younger age.

  • Opt for a Suitable Policy Term

The term insurance tenure is a crucial factor that decides the insurance premium. The longer the term, the higher is the premium rate. So, it is recommended to choose an apt policy term that secures you sufficiently.

Furthermore, term plans are pure risk covers that financially protect your family when the plan is in force. In case of the policyholder’s death after the policy expiry, the claim will not be covered by the insurer. Thus, selecting the right policy period is vital.

  • Steer Clear of Lifestyle Habits

Another aspect that plays an important role in deciding your term insurance premium is your health. Lifestyle habits such as smoking or drinking alcohol can lead to an expensive term plan premium as these habits can cause health complications in the future. So, it is advised to refrain from continuing such practices that can take a toll on your health and in turn, increase your insurance premium cost.

  • Stay Healthy

Taking care of your well-being is a must for a healthy and happy life. This also helps in securing an affordable term insurance premium as any health issue can mean a hefty premium quote. Medical conditions that affect your health lowers your life expectancy and hence, your risk quotient increases from the insurer’s perspective. So, ensure to be proactive towards your health to avail a cost-effective premium rate.

  • Compare Term Plans

With a large number of insurance companies available in the market, you can find competitive premium rates online. By comparing various term plans, you can not only avail a lower term policy premium rate but also get better features.

Moreover, shopping for insurance online enables you to stick to your budget and get suitable coverage. Therefore, it is advised to compare several policies online on various aspects to enjoy increased coverage.

  • Avoid Going Overboard with Riders

Insurance providers offer lucrative riders with term insurance plans to maximise coverage. However, these riders come at an additional price and increase the term insurance premium quote. To avoid paying a hefty premium rate, it is recommended to only opt for riders that satisfy your insurance requirements. By adding every rider to the term plan, you will end up paying a high premium price.

  • Buy Term Insurance Online

An effective way to reduce your term insurance premium is to purchase it online. It is not only convenient to buy a term plan online but also more cost-effective. Just log on to Finserv MARKETS, fill out the application form and upload the required documents, you shall have secured a term plan. Moreover, the entire process can be completed from your home or on the go!

  • Choose the Right Premium Payment Frequency

There are four premium payment frequencies available for your term insurance plan. These include monthly, quarterly, half-yearly and yearly payments. Based on your budget, you can choose a suitable payment option.

Moreover, some insurers may offer discounts or lower premium rates in case of annual payment frequency. Thus, you must compare such aspects while selecting the payment option.

Wrapping it Up!

With the above pointers, you must have understood some ways to help reduce your term insurance premium. By opting for a term plan with the right sum assured, you can ensure your loved ones are taken care of in your absence. So, head over to our term insurance premium calculator to estimate your sum assured amount!

Moreover, term insurance with critical illness rider available at Finserv MARKETS covers 55 major and minor ailments for extensive protection. Don’t put it off anymore and secure your family with a term insurance plan today!

FAQs on Ways to Reduce Your Term Insurance Premiums

✔️When is the best age to buy term life insurance?

It is recommended to opt for a term insurance policy as soon as you begin your first job. As purchasing term plans early in life enables you to avail an affordable premium rate, you must buy it at a younger age.

✔️What is a 1 crore term insurance policy?

A 1 crore term plan is a type of insurance having a sum assured of ₹1 crore. In the event of the policyholder’s death, the beneficiary shall receive a death benefit of ₹1 crore to secure their finances. Learn more about the 1 crore term insurance policy at Finserv MARKETS!

✔️What are the various types of term insurance plans available?

There are six types of term insurance policies that you can buy to safeguard your loved ones. These include:

  • Level Term Plans

  • Return of Premium Plans

  • Increasing Term Plans

  • Decreasing Term Plans

  • Convertible Term Plans

  • Term Plans with Riders

✔️How much term insurance do I require?

It is recommended to opt for a sum assured amount which is 10-15 times your current income. However, you can also estimate the coverage amount by accounting for the long term expenses of your dependents and any pending debts. 

✔️Can I avail tax benefits on term insurance plans?

Yes. The premiums paid towards your term plan can be claimed under Section 80C of the Income Tax Act, 1961. A maximum sum of ₹1.5 lakh can be claimed per financial year. Moreover, the death payout can be claimed as tax-free under Section 10(10D) of the Income Tax Act, 1961.