Looking for Affordable Term Insurance in 2022? Read This Article

A term insurance plan is an ideal and effective way to protect the future of your family. If an unfortunate and untimely demise of the primary earning member leaves the family financially vulnerable, the term insurance sum assured can help deal with it. Even though term insurance remains the most affordable of life insurance products in 2022, many people hesitate to opt for it as they think that the term insurance premium would be too high. There are many factors that influence how low or high the premium can go. While some factors, such as the insurer’s underwriting principles, may not be within your hands, other factors are indeed within your control to a great extent and can help you reduce the term insurance premium. 

What is term insurance? 

Term insurance works to secure your loved ones’ future, even in your absence. When you buy a term policy, you are quoted a premium. Paying this premium on time leads to the building of a huge corpus, known as the sum assured. This sum assured amount can be anywhere from around Rs 5 lakhs to Rs 1 crore. Essentially, this amount should help your family live a financially secure life if you pass away during the duration of the policy under conditions specified in it. 

Now that you have the answer to ‘What is term insurance?’, let’s understand how you can make its purchase more affordable for you this year. 

Ways to get an affordable term insurance plan

Buy term insurance early 

Experts suggest that the best route to get an affordable term insurance plan is to buy it as early as possible, ideally in your early- or mid-20s. People are at their healthiest at this stage of life, and generally, do not have serious health issues. This reduces the level of risk that they are vulnerable to. When one is in their 40s or 50s, their susceptibility to serious health disorders increases. Plus, the time to build a considerable corpus is less. Buying term insurance in your 20s means that you have a longer time span to build a high sum assured, which can lead to a lower term insurance premium. 

Follow a healthy lifestyle and avoid harmful habits 

If you are an avid follower of a healthy lifestyle, then the chances of you getting a more affordable term insurance premium increase. Healthy habits such as having a wholesome diet, exercising regularly, participating in yoga and other wellness initiatives, and so on, can have a positive effect on your physical and mental health. This helps strengthen your immune system, increasing your resistance to life-threatening diseases such as diabetes, high blood pressure, obesity, and so on. 

On the other hand, harmful habits such as drinking heavily and smoking can weaken the immune system, and in fact, make you more defenceless against serious diseases such as cancer or liver damage. Insurers consider these factors when they are calculating your premium. 

Use a term insurance premium calculator 

This tool will help you plan your term insurance journey in a more thorough manner. Once you add the details such as age, gender, sum assured required, and so on, into the calculator, it gives you an approximate premium. Now, you can tweak around some of the variables until you get a premium of your choice. You can modify the sum assured amount and other factors which are within your control. This helps you keep the term insurance within the budget. 

However, do remember that the term insurance premium calculator only gives an estimate based on a fixed number of variables. The actual figures may vary. 

Opt for the yearly premium payment mode

Some people think that since monthly premium payments cut down the premium into small amounts, they would be more budget friendly. However, that may not be the case every time. People, sometimes, end up paying up more overall with monthly premiums than what they usually would if they were paying them as a cumulative, annual term insurance premium. 

Consider buying online

In an attempt to market their digital presence, insurers often offer discounts to policyholders who are buying term insurance online through their websites or apps. 

So, if you are looking to get an affordable term insurance premium in 2022, do follow these tips! Importantly, remember to read the terms and conditions thoroughly before signing any policy.