4 Ways to Reduce Your Term Insurance Premium Amount

Choose to get insured at a young age
Choose to get insured at a young age

By- Yashvi Jain

A strong insurance plan with end-to-end coverage is a fundamental requirement for most people and their families today. With inflation in living costs and medical expenses, one needs to secure themselves and their dependents from financial and emotional distress. Understanding the universality of these anxieties, many insurance providers have sought to introduce term insurance plans that cater to people across all income brackets.

A term insurance plan is made effectively to cover the needs of the insured and their dependents through an assured benefit sum in the event of the policyholder's demise. You can easily get started with term insurance by using a term insurance premium calculator online!

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Premiums are a requisite that is recurrent in most life insurance and term plans in India, it is the nominal payment that is paid to the insurance provider by the policyholder on a regular basis throughout the policy tenure. This payment maintains the coverage provided by the insurance provider and adds to the payout that is assured to the beneficiary at the end of the policy term.

A term insurance premium calculator is an online tool that helps a person to get an approximate quote as to the premium investment they would have to make for towards their term insurance on the basis of their income, age group, monetary liabilities. There are term insurance calculators which can calculate the required amount of coverage a potential policyholder ought to avail according to the aforementioned metrics.

Since premiums are the cost incurred in the course of securing one's future in the present, it is helpful to calculate the cost of premiums one can expect on their requirements from a term insurance plan. A term plan premium calculator serves that purpose; where on the basis of a person's finances and personal details one can get some visibility about the regular costs they may have to devote from their income towards premium payments for their term insurance plan.

The ability to afford an insurance plan with coverage and features that aid a policyholder through various difficult situations can be a privilege in itself. Even though term insurance plans are some of the most affordable insurance solutions on the market today, people with limited finances may struggle to maintain the premium costs.

Therefore, let us look at some of the ways in which a potential policyholder can reduce their term premium amount whilst maintaining their stipulated coverage:

1. Premiums at a Younger Age:

One of the best ways to reduce premiums towards a term plan at an affordable investment rate is by choosing to get insured at a young age. A detriment of buying term insurance plans at an older age is the high cost of premiums, as a person is most likely to have illnesses or ailments at this age rather than at a young age. Term insurance premium calculators also ask for the policyholder's age while calculating the approximate premium, as it is an important factor for insurance providers.

Buying a prolonged-term insurance plan in one's mid-twenties is the ideal decision, as the cost of premiums is significantly less.

Choose to get insured at a young ageShutterstock

2. Premium Patterns:

Many term insurance plans and their variations offer the options for the policyholder to pay their premiums in a staggering frequency that fits their income patterns or financial situation.

A policyholder can use a term insurance premium calculator and choose to analyze the frequency of premium payments that is the most feasible for them. It may vary from monthly, quarterly, bi-annual, or annual basis. One apart from annual payments is calculated as per multiplying with a modal value.

3. Healthy Lifestyle Choices:

Since at the time of calculating across plans and the ideal choice of insurance a term insurance premium calculator takes the health and lifestyle of the prospective insured person, it affects the cost of premiums that may be quoted by the provider.

Therefore, if a person hopes to have significantly affordable premiums they must choose to live their life in the healthiest way possible. Being a non-smoker, in their mid-twenties, with no pre-existing medical ailments, or a relatively balanced lifestyle with little stress.

4. Use Online Resources:

Along with several combinations and types of term investment plans available for a policyholder to choose from, there are many online resources such as a term plan premium calculator that are evolving with measurement metrics to help compare plans across insurance providers and their best customizable versions. A person can use these resources by adding their requirements to get an approximate idea of the plan that is the most suitable for a certain income and lifestyle.

One can also choose to directly compare and purchase plans on an insurance provider's website along with the term plan premium calculator as they often have incentives and offers for direct website purchases and consultations.

Finding The Ideal Solution

A basic term insurance policy in India is considered to be one of the most affordable means of securing one's future where premiums are low and one can customize their coverage and payout methods as per their convenience. The tax benefits of term insurance also state that the premiums paid for a term insurance plan and the payout sum thus received from the same at the time of maturity is exempted from taxation under Section 80C and 10(10D) of the Income Tax Act, 1961.

Tools like a term insurance premium calculator were made specifically to calculate premiums can be a useful resource to have at one's disposal before choosing a term insurance plan in the effort to aid one's dependents in the time of financial crisis. The premiums thus calculated can help the potential policyholders choose from the most affordable options, and help them secure their future in a seamless manner.

Disclaimer: (This article is sponsored and includes some commercial links)