Guide To Buy The Affordable Term Insurance Plan In India

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Updated on Aug 08, 2023

Getting term insurance is extremely important in today’s day and age. However, you also must make a sincere attempt to find an affordable term plan and pay an economical term insurance premium. How do you ensure you have a good plan at the best rate? There are some pointers that you can follow to achieve this. Read on to know more.

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Opt for the correct sum assured

The first tip for you is to choose the sum assured of the term insurance plan very carefully. This is important because the sum assured is directly proportional to the term insurance premium. The higher the sum assured, the higher the premium and vice-versa. Assess your needs and see what your ideal coverage amount should be. It is not wise to over-insure as then you will unnecessarily pay an extra premium. Similarly, it is very dangerous to stay under-insured. Thus, analyse your needs very closely and choose the perfect sum assured when you buy term insurance.

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Compare

One of the best and the easiest ways to get affordable term insurance is by comparing the available options. Online term insurance comparison can be done in just a few minutes. There are many insurance aggregator websites that work as insurance agents and sell you the plans on their portals. The major difference, however, lies in the fact that these ‘brokers’ don’t change any brokerage amount and so comparing becomes totally free. Compare insurance brokers and find the best plan too to get an affordable term life cover.

Choose a suitable tenure

Just like choosing the perfect sum assured is important, choosing the perfect tenure for the term plan is also crucial. Your premium will depend on the policy period, so check your needs and buy the term plan for as long as you need. Do the correct online term insurance comparison and get the right cover.

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Buy online

The online term insurance plans are priced lower than the offline term plans. Because the process is online, you save on the brokerage amount. Also, the processing and administrative fees are lower and this leads to a further price drop. The online term insurance comparison allows you to spot the cheaper plans as well.

Pick the riders wisely

There are many term insurance riders that you can choose from. While all the riders are good, every single one of them may not be of use to you. This is why you need to choose wisely. Understand the scope of coverage offered by each rider and then buy the ones that would suit you the best. If you have too many redundant riders, your term insurance premium will also shoot up.

Choose a good insurer

Choose a good insurance provider who has a healthy claim settlement ratio. If you find a plan that is very cheap but the insurer’s claim settlement ratio is low, you may end up facing problems later on. So, choose wisely and find the right balance between the price of the term plan and the credibility of the life insurance company. Compare insurance brokers to get information on the best insurers.

If you buy term insurance after evaluating all the points mentioned above, you will surely find an affordable term plan that can help cover you in the most economical as well as wholesome manner. Compare insurance brokers and the job will become easier for you.

Also read: Best Term Insurance Plan With Return Of Premium In India

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FAQs on Affordable Term Insurance Plan

What is term insurance?

Term insurance is a type of life insurance policy that provides coverage for a specific period of time, usually 10-30 years. It pays out a death benefit to your beneficiaries if you pass away during the term of the policy. Term insurance is typically more affordable than other types of life insurance policies, such as whole life or universal life.

What is an affordable term insurance plan?

An affordable term insurance plan is a type of term insurance policy that is designed to be cost-effective for the policyholder. These policies typically have lower premiums than other types of life insurance policies, making them more accessible to individuals and families on a budget.

What are the benefits of an affordable term insurance plan?

The main benefit of an affordable term insurance plan is that it provides financial protection to your beneficiaries if you pass away during the term of the policy. Other benefits include:

Affordable premiums that fit within your budget
Flexibility to choose the length of the policy term
Ability to choose the amount of death benefit you want to provide for your loved ones
Easy to understand and purchase, without the complexities of other types of life insurance policies

How much does an affordable term insurance plan cost?

The cost of an affordable term insurance plan will depend on a variety of factors, including your age, health status, lifestyle, and the amount of coverage you want. Typically, the younger and healthier you are when you purchase the policy, the lower your premiums will be. You can use online calculators or speak to an insurance agent to get an estimate of the cost of a policy.

How do I choose the right affordable term insurance plan for me?

To choose the right affordable term insurance plan for you, you should consider:

Your budget and how much you can afford to pay in premiums
The length of the policy term that will provide the right amount of coverage for your needs
The amount of death benefit you want to provide for your loved ones
The financial stability and reputation of the insurance company offering the policy
Any additional features or riders that may be available with the policy

Can I convert an affordable term insurance plan into a permanent life insurance policy?

Some affordable term insurance plans may offer the option to convert the policy into a permanent life insurance policy, such as whole life or universal life. This can provide lifelong coverage and may also have cash value benefits. However, the ability to convert the policy and the terms of the conversion may vary depending on the policy and the insurance company, so it's important to read the policy carefully and ask questions if you're considering this option.

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Jul 14, 2021
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PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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