The importance of insurance in times when life is more unpredictable than ever cannot be undermined. A simple life cover such as term insurance is a must in your financial plan. Known to provide substantial coverage at an affordable price, it fulfils the prime motive of making sure that your family has enough money to sustain themselves in the event of your untimely death.
 

This type of insurance has evolved over the years to go beyond providing a death benefit. By investing in one, you can enjoy a plethora of term plan benefits, including planning for life’s goals, tax^*-saving, accelerated protection with riders^#, etc.
 

With an array of term plans available offering varied features, it can be confusing to select the apt deal! You want adequate term life insurance coverage that is affordable. The insurance cover and premiums you pay depend on various factors like age, lifestyle, occupation, etc.
 

Here are some aspects to consider to pick the right kind of cover for the apt price.
 

Start Early
 

Your age is a crucial aspect in determining term life insurance prices and coverage. Typically, you pay lesser premiums when you are young. This is because you are healthy and less prone to contracting serious illnesses that risk your life at a young age. For instance, if you buy a term policy at the age of 30, you will be charged lesser premiums as opposed to purchasing it in your late 40s. So, get yourself insured early to save on premiums.
 

Analyze Your Term Life Insurance Coverage Requirements

As mentioned before, the price of your policy is directly related to the life cover you choose. While you want an affordable term life insurance, you also don’t want to compromise on the coverage as it will affect your family. Experts suggest that your life cover should at least be 15-20 times your annual income. But, you need to consider several elements to determine the sum assured you require. This includes:
 

• Your income
• You and your family’s standard of living, i.e., the cost of running your family
• Health risks
• Financial debts and liabilities
• Financial objectives like child’s education, marriage, etc.
• Your existing investments and assets
• Emergency and old age funds for you and your dependents
• Inflation rate

You can use a term insurance calculator or a human life value calculator to get an approximate amount of life coverage you need.
 

Evaluate your Term Policy Tenure

There’s no denying that the longer you stay invested the better the amount of savings you can accumulate. However, with life insurance, longer tenures equal more premiums. To get an affordable term life insurance, it is recommended to buy it for the term till you gather enough wealth to secure your family’s financial future. In simple terms, the age when your net worth exceeds the life cover you currently need is the time till which you need insurance.
 

Check Premium Payment Terms

The amount you can save on term life insurance prices also depend on the modes of premium payment. Typically, opting for annual premium payment helps you get a lesser quote. But, if your resources don’t permit it, you can go for monthly payments. Pick a term policy with flexible premium payment options for the apt deal.
 

Pick a Limited Pay Term Plan

By choosing the limited-pay option, you pay off your premiums early, i.e., way before your term plan tenure. At the same time, your term plan benefits continue till the age you choose for your coverage. For instance, if you buy a term cover at 35 till you turn 60, for a premium payment tenure of 10 years, then you can reduce your insurance liabilities post the age of 45 and also enjoy substantial protection for your loved ones.
 

Take Advantage of Riders^#

Life is full of surprises. Sometimes, these surprises can be detrimental to you and your family’s financial health. Death or disability due to an accident or terminal illness can occur without a warning and drain your savings. Most term insurance policies offer riders^# or additional protection against such events at a nominal charge. Some of them provide these free of cost. It pays to invest in them as they either help waive premiums or provide payouts to cover expenses.
 

Consider the Top-Up Option

Many term policies come with the choice to top-up your premiums. It allows you to increase your term life insurance coverage to provide for changing financial requirements. If your income rises, you can invest in this option to enhance the sum assured to facilitate your goals and secure your financial dependents.
 

Live a Healthy Lifestyle

As mentioned previously, your coverage as well as the term life insurance prices are dependent on several aspects including your health and lifestyle. The more the level of risk more the premiums you pay. The cost of term life insurance is more for smokers, those who consume alcohol or drugs, are obese, or those who are highly prone to diseases. If you follow a healthy lifestyle, i.e., exercise regularly or eat well, then you can save on premiums.
 

Purchase Term Life Insurance Online

Today, buying a term plan is a few clicks away. Apart from the convenience of buying it from the comfort of your home or office, you also incur less costs. Thanks to the discounted premiums and the lack of intermediaries. Since you purchase directly, you save on costs of involving a middleman. Plus, you can enjoy discounts while buying a policy online.
 

L&C/Advt/2023/Jan/0303