Term insurance is an agreement between the policyholder and the insurance provider wherein the insurance provider promises to provide a sum assured in case of an unfortunate demise of the life assured. The cost of a term insurance plan is known as a premium quote. The premium for life insurance plans depends on a number of factors such as life assured’s age, medical records/history, occupation, lifestyle, personal habits such consumption of alcohol/tobacco, coverage amount i.e. sum assured, coverage time period i.e. policy term, etc.
What Factors Affect Term Insurance Premium Quotes?
Following are some of the factors which affect the premium quote of a term insurance plan -
1. Type of Term Insurance Plan: There are 5 types of term insurance plans namely Level Term Plans, Term Plan With Return of Premium (TROP), Increasing Term Plans, Decreasing Term Plans, and Convertible Term Plans. The premium amount of each type of term plan is different. For instance, the premiums of decreasing term plans are relatively lower than increasing or convertible term plans.
2. Life Assured’s Lifestyle Habits (Alcohol/Tobacco Consumption): The premium of a term insurance plan is also a factor of the lifestyle habits of the life assured. Unhealthy lifestyle habits like consumption of alcohol or tobacco attract relatively higher premium rates.
3. Policy Term: Every term plan is valid for a certain number of years which is known as the policy term. There are various insurers that also offer whole life term insurance plans, wherein the life assured is covered till 99 years of age. The premium of a term insurance plan depends positively on the policy term, thus, the longer the policy term, the higher the premium and the longer the time you are covered.
4. Sum Assured Amount: Sum assured refers to the amount payable to the nominee in case of an unfortunate demise of the life assured. The higher the sum assured, the higher the premium.
5. Life Assured’s Medical History: Another factor that affects the premium of a term insurance plan is the medical history of the life assured. The healthier the life assured, the lower is the premium.
6. Life Assured’s Age: The premium amount also depends on the age of the life assured, the older the life assured, the lower is the premium amount.
How To Get Best Term Insurance Quotes At InsuranceDekho?
You can get instant quotes for your term insurance by following the steps given below:
Enter your name, date of birth, and mobile number.
Click on the ‘Get Quotes’ button.
Tell us if you have smoked or chewed tobacco in the last 12 months.
Select your ‘Education Qualification’.
Select your ‘Occupation Type’ and ‘Annual Income’.
Premium Quotes of top term insurance plans will be displayed to you matching your specifications.
How To Compare Term Insurance Quotes Online?
Following are some tips that will help you compare different life insurance policies to help you find the one best suited to you according to your requirements:
1. Assess Your Insurance Coverage Need: The first and the foremost step is an assessment of one’s term insurance coverage needs as on the basis of this you can arrive at your sum assured requirement. Sum assured is the amount that is paid to the nominee in case of an unfortunate demise of the life assured. The amount of sum assured should be calculated by adding up all your annual expenses, long-term liabilities less assets in your name. The amount should be in line with the number of years for which you want to get assured.
2. Compare the Coverage of Different Plans: After assessing your sum assured requirements, identify the term plans offering the required coverage and compare them on the basis of inclusions and exclusions. In addition to the different benefits, it is also important to check the mode of payment of the benefit. Shortlist the plans matching your requirements in the best manner.
3. Check the Terms and Conditions of the Policy: A lot of the insurance is in fine print. Hence, make sure to read the policy you choose carefully, there are often a number of terms and conditions attached to the plan that can make the policy a bad bargain.
4. Choose the Optimal Plan: When comparing car insurance policies, it is easy to just veer towards the cheapest premium amount. However, keep in mind low premiums also mean low coverage and this can prove more expensive in the long run. The best policies are affordable and effective at the same time. Thus, choose the plan which offers optimal coverage at affordable rates.
What are the Benefits of Comparing Term Insurance Quotes Online?
The benefits of comparing life insurance online are:
1. Informed Decision: Comparison of various term insurance quotes online helps you identify the coverage, exclusions, features, benefits, etc of a plan, thereby helping you make an informed decision.
2. Convenient Process: It is always more convenient to compare term insurance quotes online as you get to do so on a single platform instead of looking into multiple documents at multiple places.
3. Quick Process: Due to the availability of ready and customized information on the term insurance quotes online, you can make a term insurance purchase quickly and in a hassle-free manner.
4. Less Paperwork: Purchasing a term insurance plan online involves relatively way less paperwork than the offline mode as most of the processes are digitalized. This, in turn, adds to your convenience and helps you save your time.