You are having a comfortable life – you have your dream job, and it pays you well, you just bought a home and a car, and your life is comfortable with your spouse and kids. But what if, unfortunately, something happens to you and you have to leave your family behind, and your spouse has to single-handedly repay the loans and take care of your children?
If that thought makes you uncomfortable, the first thing you should do is to make sure you buy term life insurance. Term life insurance benefits a lot of families in times of crisis like these and you should make sure that your family is protected too.
Term life insurance premiums
Term life insurances tend to have the lowest premiums among insurance policies. It is mainly because there is no investment involved here, and the insurance company won’t repay you your premiums at maturity, in a basic plan.
Even then, there are certain ways you can save more money on your term insurance premium, let’s look at some of them.
- Subscribe to a term life insurance at a young age
At a young age, you are at the prime of your health and chances of ailments and lifestyle diseases are very less for you. For the insurance companies, this means lower risk. Insurers see that the chances of a young person’s family claiming a life insurance is much less. This means lower premiums.
This makes it a very wise idea to buy an insurance plan early, especially in your 20s.
Let’s take an example –
Term insurance calculators that are available online help you determine your premium price according to parameters like your age, health, and coverage choices.
Term insurance calculators, on an average, show that if you are 25 years old, a coverage of Rs.1 crore till the age of 70 will cost you at least Rs.575 per month.
At the same time, if you are 35 years old, the same coverage will cost you at least Rs. 935 a month, which is almost a 90% increase.
The same coverage will cost you at least Rs.1558 per month if you are 45 years old, and Rs. 2645 a month if you are 55 years old.
The below table will help you compare –
Average insurance prices according to online term calculators
| Current age | Coverage till the age of | Coverage amount | Minimum premium per month |
| 25 | 70 | Rs.1 crore | Rs.575 |
| 35 | 70 | Rs.1 crore | Rs.935 |
| 45 | 70 | Rs.1 crore | Rs.1558 |
| 55 | 70 | Rs.1 crore | Rs.2645 |
Buying insurance at a young age will also help you with coverage for a longer period of time with a lower premium. You could also opt for riders that could be beneficial, like a guaranteed insurability rider which ensures you an extension of your current term life insurance policy without a medical check-up. This way, you can utilise your prime health at your young age to save on your premiums at a later age.
- Buying term insurance online
Buying your term insurance online can save your money in two different ways.
One – you can save the money you would spend on the paperwork and multiple travels to the broker’s office.
Two- You could save on the broker fees.
Through online, you can buy insurance directly from companies, which will only have a minimal fee, or you could buy from a broker website. Typically, online broker websites charge only a small fee as brokerage compared to the offline process.
- Comparing plans
Another way to make sure you get the best value out of your money is to compare different policy providers and choose a plan that will work for you.
You can make use of the different online term insurance calculators to determine your premium amount according to your needs.
- Research
Research is very important when buying a term life insurance. Proper research can make you understand different term insurance benefits and choose a plan that will provide maximum value for the money you’re spending.
While saving money is important, it is vital to understand that term life insurance is a necessity. If you don’t have one yet, it is highly advisable that you visit an insurance company or broker website as soon as possible and get started with the process.
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