Term insurance provides financial protection to your family and loved ones in your absence. However, many people find the premiums charged to be expensive and unaffordable. The good news is – with some smart tips, you can find the cheapest term insurance in 2024 that matches your specific budget and needs.
This article will explain who should consider buying term plans, what key aspects decide the premium pricing, and, more importantly, provide handy tips for getting the most affordable deals. Whether you are a young breadwinner, a working woman, or a single parent, you can always get term coverage that matches your needs.
Who Should Consider Buying Term Insurance?
Term insurance is a good option for most people, but it is exceptionally well suited to specific categories:
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Thursday 09 Jan. 2025
- Breadwinners supporting families: If you are the primary income earner in your family, term insurance can help ensure your spouse and children are financially supported if you were to pass away prematurely.
- People with large debts and loans: If you die before paying off debts like a mortgage or student loans, term insurance provides a death benefit that your family can use to pay off these outstanding debts so they don’t inherit the burden.
- Those with financial dependents: Whether you support a family member like a parent or have young children relying on you, term insurance is an affordable way to ensure your dependents have some financial stability if they lose you untimely.
- Working women: Term insurance can benefit female breadwinners as much as male breadwinners by allowing them to maintain their family’s way of life if they pass away.
- Business owners: Term insurance allows business owners to protect their company from financial hardship if a key member dies.
- Single parents: For single moms and dads, term insurance makes sure your children are cared for financially if you pass away before they reach adulthood. Affordable rates let single parents protect their kids.
What Impacts the Cost of Term Insurance?
The amount you pay as a premium for term insurance depends on several factors, such as:
- Your age: Rates go higher as you grow older. Young people get the cheapest deals.
- Gender: Statistically, women live longer than men. So, they are charged 7-10% less premium for the same coverage.
- Health status: People with a medical history of issues like diabetes or blood pressure have to pay higher premiums as they are seen as risky customers.
- Tobacco habits: Smokers and tobacco users also pay higher premiums as insurance companies consider them a high risk of falling sick.
- Claims process: The insurer’s track record of settling claims also builds confidence to pay that extra premium.
- Add-on covers: Adding extra covers like critical illness rider increases the overall premium to be paid.
Tips to Find the Cheapest Term Insurance in 2024
By keeping in mind some of the helpful tips given below, you can easily find the cheapest term insurance in 2024:
1. Start searching early in the year
Insurance companies increase premium rates from April when the new financial year starts. If you buy a term plan at the beginning of the year, you can still get a lower rate before the increase. This increases the chances of getting the cheapest deals.
2. Use online insurance platforms
Various websites allow you to compare term premium rates from different providers in one place, saving you a lot of time and effort.
3. Look beyond just the premium price
In addition to using a term life insurance calculator to compare low premiums, look at the company’s claim settlement history. Choose an insurance company known for its transparency in dealing with claims, even if it is a little expensive.
4. Opt for higher deductibles
Generally, opting for a higher deductible means you agree to pay more out of pocket before the insurance kicks in. This can reduce your insurance premium because you take on more financial risk. For instance, if you choose a higher deductible, the insurer’s risk is lower, often resulting in lower premiums.
5. Evaluate both online and offline channels
Online platforms make it easy to compare term premium rates, whereas offline insurance agents may have special promotions that are not available digitally.
6. Choose the ideal coverage amount
Decide the sum assured according to your income and family’s needs. Taking lower cover, like ₹50 lakh, substantially reduces the premium compared to a ₹1 crore policy.
7. Avail of special discount schemes
Limited-period discount offers during Independence Day and Republic Day can reduce your premiums. However, you need to remain updated on such offers.
Conclusion
Finding the cheapest term insurance requires an intelligent effort – compare previous quotes using a term life insurance calculator, opt for optimal cover amount as per income, and check for special discounts. This gives your family enough protection in case something happens to you without even burning a hole in your pocket.
