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Term life plans are increasingly being preferred by most individuals and families. They are offered by all insurance companies in India, and the Premium largely varies from one company to another. Before, we get into the details of the subject; let’s first understand what a Term life plan is.
In simple words, term life plans are insurance plans that give a high Coverage for a substantial premium that you will be paying. Term plan is the most important and beneficial of all insurance plans. The reason is simple: While most other insurance plans offered by the insurance agents fail to give much value to your premiums, the term life plans gain an edge as they give a very high coverage benefit for the small premiums that you pay.
The term life plan is the most basic insurance plan around which most other plans are built. As you choose to opt for more features, the benefit and premium of the plan will increase proportionally. However, the increase is said to really high for most plans and it varies from agent to agent. Keep in mind that you will have to pay a considerable amount as commission to the agent who is selling you the insurance plan. And this amount will ultimately reflect on your term premium, which will be evident when you calculate the total cost of the plan.
When it comes to saving expenses on your life premium, it’s very important that you choose only what you want. That is, make sure you choose a plan that is sufficient enough to meet your needs. For example, a 10% on an amount of Rs1000 would mean Rs100. On the other hand, if your plan is fixed at Rs2000, then you will end up paying Rs200 as your term premium.
Your term premium will depend on various factors such as age, physical well being, family medical history, blood pressure, cholesterol, diabetes, cancer, tobacco usage, and general lifestyle. The more risks you carry, the more will be your term life premium. Other factors that might influence your term premium include your past driving record, criminal record (if there is any), occupation, military service etc. The premiums will also vary based on the gender. Generally, women are considered to carry a longer life expectancy than men, and will be offered lower term plan
How high your premium should be depends on your lifestyle and needs. 50% of it is in your hands while the rest depends on the company. In all probabilities, by living a healthy life, you can get a very low term life plan for yourself. As the term plans offered by various insurance companies largely vary from one another, you can always compare and choose the one that best suits your needs and budget.