Your early twenties was when you began earning and enjoying life, or so Santosh had heard since he was in college. He had been eagerly looking forward to the day he got his first salary credited to his bank account that had been created by his company. However, as soon as he received his first salary, he also began receiving a ton of unsolicited advice on what he should do with it. One suggestion that stuck with him though was to invest in a low cost term life insurance plan. It sounded like a good plan, since not only could he ensure financial protection for his parents even if he was no longer around but he could also save on paying taxes by investing in such a plan. All of these benefits appealed strongly to him, and he decided to purchase a low cost term life insuranc epolicy after conducting some preliminary research.
A term insurance policy guarantees protection and coverage for the policyholder's beneficiaries after the policyholder is no longer around. Several add-ons or riders can also be affixed to such term life insurance plans, such as riders covering critical illnesses or even hospital care.
Term life insurance policies can be availed for very low costs, especially with the enormous amount of competition in the insurance market today. However, it is essential to ensure that the plan being opted for does provide adequate benefits. A few pointers could be kept in mind before availing the best low cost term life insurance plan.
- Analyse the options available, and then choose:
A lot of options are available in the market today in terms of low-cost term life insurance, and it is necessary to browse through these plans before selecting one. A potential policyholder should ideally compare at least a couple of term life insurance policies that may be available to them, analyse the pros and cons of each and then choose one that is best suited to their requirements. Since a term life insurance policy is something that will ensure the continued protection of their dependents after the policyholder is no longer around, it is essential to get the most effective policy rather than the cheapest one. However, with the amount of options in terms of low cost term life insurance plans available in the market today, it is much easier for a policyholder to pick a low cost policy that also adequately covers all their requirements.
- Premiums are cheaper for younger policyholders:
The younger a policyholder is, the cheaper the premiums for their term life insurance policy will be. This is because premiums are decided by insurers on the basis of a variety of factors such as age of the policyholder, whether they currently suffer from any diseases or if they are prone to it owing to genetics or because of their own habits or lifestyle. Since someone in their 20s is more likely to be in better health as compared to someone in their 40s, insurers offer them cheaper premiums. Consequently, a good way to buy a low cost term life insurance plan is to buy it at a young age.
- Stay healthy:
The premiums as well as benefits associated with the term life insurance policy depends on the health of the policyholder. If the person lives a dangerous lifestyle, such as if they indulge in sports or activities that may lead to their death; insurers are likely to insist on higher premiums. Other lifestyle habits, such as smoking or drinking regularly may also result in the policyholder having to pay higher premiums. To avail a low cost term life insurance policy, it is best to maintain good health. Along with the low cost of premiums, good health obviously has multiple other benefits.
- Be honest while applying:
Insurance claims are often denied if the insurer finds out that the policyholder lied on their application form. The lie could have involved the policyholder lying about their lifestyle, about any pre-existing diseases they had or about their habits. In such cases, the insurer mostly refuses to pay out the benefit payable to the beneficiaries of the policyholder; leaving them at a dead end. It is best to be honest while filling out policy documents since it ensures that dependents are not deprived of protection that could have been useful for them post the policyholder's death.
- Set priorities in place, and then buy:
Insurance agents can be found among distant and even close relatives and friends of the family. However, while choosing a policy, it is essential to not let the extent of the agent's relationship influence the purchase decision. While an insurance agent close to the family may offer low cost term life insurance, it may not be the best in terms of the benefits it offers or it may not cover certain significant aspects that may be required by the person purchasing the plan. It is of the utmost importance to choose a term life insurance policy that is aligned to requirements, over any other factor.
While most people would want a low cost term life insurance policy, it is essential to not make the deciding factor while choosing a policy. A low cost plan might not cover all the benefits that would have come along with a policy priced slightly higher. It is essential to check all the policy options available in the market, before settling on one in order to ensure the highest amount of coverage for beneficiaries and dependents in case of the policyholder's death. Plans like the Future Generali Flexi Online Term Plan provides a cover of Rs. 1 crore with premium payments costing just Rs. 16 a day. Not only does it offer a lumpsum payout at the time of the policyholder's death, but also offers a monthly income till the time the policyholder turns 60 years or for 10 years.