Purchasing a financial product to secure your family’s future is important if you are an earning member of your family. However, the policy features and cost are significant considerations. Buying low-cost term life insurance is a fair deal. But, will it suffice for all the necessary financial requirements? That’s a huge question. Here are a few factors that need to be discussed in this regard. So, let us get started.
What is a Term Life Insurance Policy?
A term life insurance policy is a traditional life insurance plan that provides a lump sum death benefit to your loved ones in case of unexpected death during the policy term. When it is available at a cheaper premium rate, it is referred to as a low cost term insurance plan.
Factors to Consider While Purchasing Term Insurance
While purchasing the term insurance cheap can be a beneficial option, will it suffice for the needs? Here are a few factors to consider.
- The term plan should provide the sum assured based on the financial requirements. For example, if you have many financial liabilities such as home loans, car loans, etc., and obligations such as organising your child’s marriage, paying for their tuition fees, etc., you must ensure sufficient funds.
The sum assured should help your family manage these commitments effortlessly. And to ensure that you need to afford the applicable premium rate instead of opting for the cheaper term plan.
- Term life insurance plans in India are designated to provide enhanced financial benefits. You can avail yourself of the different rider options to ensure extended financial benefits in specific scenarios.
For example, the rider with the critical illness benefit will provide a fund to pay for your medical and hospitalisation expenses if you get affected due to a critical illness such as cancer. So, if your family has a history of getting affected due to cancer, you can buy the term insurance with the rider benefit as a precaution. Of course, the riders will increase the premium rate. However, it is worth the purchase considering an emergency. A cheap term life insurance policy may not be able to provide these benefits.
- Term plans also provide flexible features that help you customise the solution based on your increasing demands. For example, you can opt for the return of premium option, increase the sum assured at different milestones in life, etc. However, while these features provide extended benefits, it is available at an increased premium rate. So, you should know such features before deciding on the cheapest term plan.
How to Purchase A Cheap And Affordable Term Insurance Plan?
You can avail of the term insurance benefits at a cheaper rate by purchasing the term plan online. In addition, you can avoid unnecessary middlemen charges and benefit from online comparison options. For example, when you purchase the Tata AIA term plan online, you can read through the features, compare the term plan products and choose the best option. Also, they have an online premium calculator that helps determine the most affordable premium rate based on the sum assured and the policy term.
You can also purchase the cheapest and best-term insurance plan in India by starting it early. At a younger age, you will have a good health condition and no pre-existing illness. Therefore, it will reduce the death risk your insurer needs to cover, providing the term policy at a reduced premium rate.
Term plans in India are considered the most affordable life insurance plans that provide a higher sum assured. However, if you plan to purchase it at a cheaper rate compromising on the benefits, it may not be the best financial product to ensure financial security. Therefore, read through the policy features, understand their flexibility, determine the affordable premium rate based on your requirements and finalise the term plan option to ensure maximum protection.