A policy of life insurance is the cheapest and safest mode of making a certain provision for one’s family. – Benjamin Franklin
Insurance is one of the most crucial and wisest steps a person can take for a sound financial plan. An insurance policy guarantees compensation for specified loss and damage in any unpredictable situation. It is like a financial safety umbrella for any person and his/her family.
Still, the insurance penetration in India is 3.49%!
Why Indians Don’t Buy a Term Plan?
Infographics: Aviva
Delving deeper, you will realize that cost is one of the topmost reasons people are living uninsured in the country. Insurance myths, ignorance are other reasons behind the reluctance of people for buying insurance. It is important to mention here that word-of-mouth analysis of people with wrong and little information has plagued the insurance industry.
Does it mean that ‘lowest possible premium and highest possible cover’ is a dream for life insurance buyers? Not really! You can even purchase a term plan at just Rs. 17 per day and get 1 Cr. Life-cover! Sounds amazing, right? Let us see how you can have your cake and eat it too.
What is Term Insurance Plan?
Term insurance is the most affordable form of life insurance that gives you the widest coverage possible in the lowest possible premium. A range of Term Insurance Plans make sure that you have peace of mind that your loved ones will be financially secure even in your absence. This financial security will cover not only their day-to-day needs but also provide monetary stability to fulfill their dreams. Some of the best Features of Term Insurance Plans include:
Sounds perfect? Isn’t it? Yes.
But it takes some effort from your side too to be a smart policy buyer. Multiple factors affect and decide the lowest possible premium. Let us go through what they are:
Life insurance is NOT an investment. It is one of the biggest truths every person should rely as soon as possible. People often mix insurance and investment. Both are indispensable for a sound and foolproof financial plan. But the sole purpose of insurance is to protect you and your family in an unfortunate situation. Life is uncertain, and you would least wish your family to suffer in any such circumstances.
How term plan works?
A term plan takes care of your family in case you meet an unfortunate incident. It ensures that your family does not suffer to pay debts and meet the day-to-day cost of living in your absence. Thus, it provides a complete safety net to protect your loved one’s future.
If we talk about a life insurance policy, age is not just a number. It may turn out to be the most important factor for how much premium you are going to pay for your term insurance policy. For the lowest possible premium, it is best to start at an early age. The younger you are, the lowest premium you are going to pay.
You never think twice before you take smoke breaks, but your insurance policy does. A term insurance policy strictly believes that smoking cause health-related risks and may even lead to fatal diseases. It means even a cigarette a day can actually double the premium you pay than a nonsmoker.
If you are a woman, you can expect a lesser premium than a man because woman, on average, live approximately five years longer than men, and so, they enjoy slightly lower rates. No offense, guys!
When taking account a term insurance policy, it can be literally said that health is wealth. It means the healthier you are, the lesser premium you are going to pay for your life insurance premium. In case of any health issues, you are going to pay more. Moreover, your health history is also going to affect the premium you will pay. It depends on the seriousness of your past health condition, when it was diagnosed, post-treatment, etc. You may have to pay higher depending on the details of your past health history.
Do you love rock climbing? Or car racing? Whether you love adrenaline-charged activities or your occupation includes high-risk activities, in either case, you will probably have to spend substantially more for your premium.
Thus, in order to avail the maximum benefits of a term insurance plan, you will need to take care of a few points and choose the right plan.
How to Choose the Best Term Insurance Plan?
In a nutshell, ‘lowest possible premium and highest possible cover’ is not a far-fetched dream you can’t fulfill. It is possible if you choose the right Aviva Term Insurance Plan and consider a few factors that affect your term insurance policy. Be a smart insurance buyer and stay away from insurance-related myths to make better financial decisions for your loved ones.
