20-06-2022 |
The life insurance premium is based on several factors. Therefore, it can increase or decrease based on these factors for the policy term. And, when you purchase comprehensive insurance solutions such as savings insurance plans, you must understand these factors to optimise the plan effectively for maximum returns. Also, only the reasonable and the most affordable plans can help you sustain through the policy term to ensure financial security and other related policy benefits. So, here is a detail to help you in this regard.
Before we understand the factors to safeguard increased life insurance premium, let us know what it means primarily.
What Is Life Insurance Premium?
Life insurance is an agreement between you and your insurance provider, wherein your insurance provider will provide a death benefit to your family in your unexpected demise. Premium is the cost that you incur throughout the policy term to ensure the benefits from the insurer. You will have to pay the premium monthly or annually throughout the policy term or a limited term based on the policy features. It can vary in savings policy with insurance benefits.
Factors That Safeguard From Increased Premiums
Ensuring the right premium and affordability through the policy duration is necessary to ascertain timely benefits. Several factors can affect your life insurance premiums that can also extend to savings plans offered by insurers. Let us understand these factors to safeguard from increased premiums in life insurance plans and savings insurance plans.
High sum assured - The premium of insurance largely depends on your sum assured. It is because the sum insured and the premium are directly proportional to each other. Therefore, an increased sum assured can result in increased premium rates. So, when deciding the sum assured, make an effective calculation to choose the necessary and adequate sum assured to ensure the benefits cost-effectively.
For instance, you can decide on the funds required to clear off debts, pay for financial commitments such as your child's education, etc., accurately.
Policy term - Policy term is another crucial factor determining your premium rate. The premium rate will certainly be higher if your policy term is shorter. And, if the shorter policy term is coupled with a high sum assured, then the premium will be even higher. Therefore, choose a reasonable policy term based on your financial requirements.
Purchasing life insurance at an older age - Age is important in determining your premium. Insurers cover the risk of your unexpected death during the policy term. With the increase in age, your probability of getting affected due to a disease or illness will increase. As a result, your premium for life insurance plans such as term insurance or savings insurance plans will increase considerably.
Therefore, it would help if you purchased the savings policy with insurance benefits or any other life insurance plan at a younger age. You can also benefit from cheaper premium rates considering your well-being and decreased probability of having a pre-existing illness at a younger age. Also, when you buy life insurance early, you can choose a longer policy term that will certainly safeguard you from higher premium rates.
Using the online application - Insurers provide varied discounts when you purchase life insurance plans online. You can also benefit from purchasing it conveniently in the comfort of being at your house.
In addition, at Tata AIA Life Insurance, we provide online calculators that help you estimate the premium based on your sum assured and policy term when you utilise the online application. So, by trying different combinations, you can derive the most affordable premium rates when you purchase our traditional and comprehensive plans, such as the Tata AIA savings insurance plans.
Purchasing the necessary riders# - Add-on riders# provide enhanced benefits in life insurance products. However, it is available to your advantage at an additional premium. Therefore, when you purchase life insurance policies, you must understand the benefits and features of individual riders# and choose it only when there is a requirement.
These factors help you safeguard from increased premium rates. However, while buying a life insurance plan with comprehensive benefits especially, you must derive the benefits maximally to suffice for your financial requirements. Therefore, compromising the features considering increased premium rates can let you down on the financial advantage when there is an ultimate requirement.
Conclusion
Savings plans in India provide the necessary benefits based on your premium. You have to ensure to keep it reasonable to afford it during the entire policy term. A high sum assured and a shorter policy term can increase your premium rate extensively. Also, when you purchase it at an older age, it will increase the death risk causing a relative increase in your premium rate.
Therefore, on analyzing different insurance product solutions, purchase only the necessary riders# and benefit maximally by ascertaining reduced premium rates. Furthermore, you can use the online application to benefit from various other discounts. Purchasing life insurance plans in life is important to safeguard your family. So, make a smart decision by considering these factors to ensure the financial benefits when you are in extreme need!
L&C/Advt/2022/Jun/1248
FOR EXISTING POLICY 
FOR NEW POLICY 
