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- Cheapest Term Insurance for All Age Groups in India 2021
Low Price Term Insurance for All Age Groups in India 2021
It is never too early to start thinking about insurance. Especially when it comes to life insurance, it is best to begin as early as possible!
Now, if you are considering getting insurance, you must have surely heard of term insurance.
So what is a term insurance plan?
Even though it deviates from the conventional life insurance, it is one of the best investment options when it comes to protecting the future of your loved ones.
Let’s take a detailed look about all the aspects of best term insurance policies!
Your premium is decided on age at which you buy the policy and remains same, throughout your life
Premiums can increase between 4-8% each year after your Birthday
Your policy application could be rejected or premiums increase by 50-100%, if you develop a lifestyle disease
What is a term insurance policy?
A term insurance policy is a type of life insurance that provides coverage during a fixed period of time. To avail the policy, you have to make periodic premium payments at a fixed rate (according to what the policy demands), spanning the period of tenure of the insurance policy.
Since life insurance is all about providing protection for your loved ones and securing their future, term insurance provides you the assurance.
However, in the case of term insurance policies, when the policy period ends, there is no guarantee of the premium rates. You can either choose to extend the policy coverage with new premium rates or forego the policy.
Thinking about getting a term policy? Know the important facts about it!
Before getting any investment it is crucial to know every little detail about it. It doesn’t do well to decide on a policy without deliberation and then have regrets later. That is why, it is imperative that you do all the necessary research about the term insurance policy of your choice.
So let’s take an overview of some of the most important factors related to term policy:
- It is a plan with a fixed payment rate for a certain period of time.
- The term policy rate of the premium does not remain unchanged after the expiry of the time period.
- A person can choose to renew the policy after the expiry of the term or can completely forego it.
- In the event of the death of the policyholder during the policy term, the nominee gets to claim the benefits from the policy.
- The beneficiary (usually a family member) can opt to get a lump sum amount or a monthly payment option according to their preference.
- Some term insurance policies also cover disabilities where there is a disruption in the income of the policyholder.
These points explain the basics of the policy. But when is it the right time for you to get the term insurance policy? Let’s find out!
Important features of the term life insurance policies:
Life is unpredictable. That is why it is not wise to assume that no harm can befall you. Therefore, to ensure that your family members don’t suffer financially in your absence, it is wise to make a term insurance policy.
The features of the policy include:
Tax benefits:
These term insurance policies have excellent tax benefits under the Income Tax Act 1961. You become eligible for tax benefits under Section 80C and Section 10(10D). Additionally, you can also claim benefits for the premium of Critical Illness Benefit under Section 80D of the Act.
Flexibility of choice:
With this policy, you can choose to invest in a single life basis plan or a joint life basis plan. In a single life basis plan the term insurance policy will cover the death of only one person (generally the bread winner of the family). In a joint life basis plan, the policy covers the death of two people (for instance, both the husband and wife).
But make sure to read up on what the specific term insurance policy offers. Most policies offer the plan on a first claim basis. That is, on the death of wither the husband or the wife. Some of the term insurance policies offer payment on the death of both the policyholders.
Term of the policy:
For term insurance, the term of the policy can range from 5 years minimum, to a maximum of 25 years to the lifetime of the insured person with monthly premium payments. However, in the case of single term policies, the term can span between 5 to 15 years. The insured person has the liberty to choose the term most convenient for them.
Eligibility:
The minimum age of eligibility for this term insurance policy is 18 years while the maximum age is 65 years. With this plan, the premium increases with the age of the insured person. Therefore, to enjoy its maximum benefits, you should consider investing at an early age itself.
Benefits upon survival:
Pure life insurance policies only provide life cover and no survival or maturity benefits. You have to forego of the premium when the period of the policy expires. However, many companies due to the demand of investors have launched survival benefits for the pure life insurance policies as well.
Term Return of Premium (TROP) plan option returns the premium to the investors after the expiry of the term even if they survive. Even though these term insurance plans with survival and other benefits have higher premium rates than pure insurance plans, the promise of getting back the premium makes them popular.
Therefore with so many favourable features, the term insurance policy has gained a lot of popularity in a very short period of time.
What are the cheapest term insurances for your age?
Accidents cannot be forecasted. A tragedy can befall you and your family at any given moment. That is why it is never too early to invest on a term insurance policy. To ensure that your family’s future is secure after you pass, it is best to make plans as soon as possible.
Thus it is crucial that you know which term insurances will work the best at your age!
We, as policyholders, have very specific needs in each stage of our lives. Your priorities certainly will change from what they were in your twenties, when you are in your thirties. Thus you should get a term insurance policy that meets your goals and satisfies your needs at that specific age.
Also, there is a change in term insurance rates by age.
So when is it the right time to get a term insurance policy?
Is it in your twenties?
The twenties are a time when you are starting your life. There are fewer responsibilities, but the pressure of building your career is paramount. Following are the few factors you should consider before choosing to invest on a term insurance:
- This is the age where you have the pressure of paying off your education loan. With a term insurance you can ensure that your debts will get paid off if any accident is to happen.
- Since the mortality rate or risk is low during this period, the premium for the insurance is much lower.
- Some of the premium rates are as low as Rs. 3776 per year, for coverage of up to Rs. 50 lakhs.
The cheapest policies you can avail in your twenties-
For the age of thirty and below there are a few term insurance plans that are both beneficial and easy on the pockets. For instance-
- Canara HSBC Oriental Bank of Commerce Life Insurance in their iSelect term plan offers the policy at a premium of Rs. 7379 with 94% claim settled.
- The Aegon Life Insurance in their iterm plan with a premium of Rs. 7497 with 94% claim settled.
- The iterm smart policy from Aviva Life Insurance offers the policy at a premium of Rs. 7886 with 84% of the claim settled.
These are few of the cheapest term insurance rates. You can also go for higher rates according to your requirements.
Are your thirties the right time to get a term life insurance?
The thirties are time when your responsibility increases manifold. Most people get married and have children during this time. Also, the thirties are a period when people tend to take house loans, car loans etc. which require long term planning on your part.
- In your thirties, your income increases significantly. That is why this is the perfect time to think about making greater investment in term insurance policies.
- Since most people have their families to look out for, and loans to settle, a term life insurance provides the insured person with the assurance of their family’s security in their absence.
- During this period, a term insurance with a monthly income option works the best. The one-time lump sum payout after the insured person’s death can help to settle any loan or debt, while the monthly payout can secure the family’s financial needs.
Cheapest policies you can avail in your thirties:
Since people can invest more into their term insurance policies in their thirties, here are a few options that can fit their requirements, without being too extravagant:
- Max Life Insurance in their online Term Plan Plus Policy offers a term insurance at a premium of Rs. 10,384 with 94% claim settled.
- Tata AIA Life Insurance in their Life Insurance iRaksha Supreme Policy offers the policy at a premium of Rs. 10695 with 90% claim settled.
- Bharati AXA Life Insurance in the Flexiterm plan offers the policy for a premium of Rs. 10384 with 87% claim settled.
These are few of the best term insurance plans that you can opt for in your thirties.
Is it in your forties?
The forties are a time when most people have settled their loans and other long time payments. However, this is the time to save up for your children’s education, think about retirement and other medical emergencies that might occur.
- By the time you are forty, you start to think about your family’s future after you seriously.
- You need a good financial corpus to look after all your needs during this time.
- It is best to invest in a term insurance policy that has a big financial cover.
- You can get a term insurance plan with a cover of Rs. 50 lakhs for a premium of Rs. 7198 per year.
Cheapest policies to avail in your forties:
Even though affordability of the insurance takes a back seat during your forties, it is always best to get maximum benefits with reasonable investment. Some of the cheapest term life insurance you can get in your forties is:
- Exide Life Insurance in its Elite Term Plan offers a policy at the premium of Rs. 14343 with 91% claim settled.
- IDBI Federal Life Insurance in the iSurance Flexiterm Policy offers a policy at the premium of Rs. 14089 with 87% claim settled.
- The Edelweiss Tokyo Life Insurance in its mylife+term plan offers a policy at the premium of Rs. 12826 with 84% claim settled.
With most people opting to go for a term insurance policy in their forties, there are several plans to choose from.
For fifty years and above!
Even though it is best to invest in a term insurance policy as early as possible, it is never too late as well.
- After your fifties, insurance plans become quite expensive. You might even have to pay double the amount of what you were paying in your forties.
- In all the previous plans, there are advantages in your premium payment if you are a non-smoker. Premiums are usually less for non-smokers than it is for smokers.
- But after your fifties, the premium you have to pay is always high, irrespective of whether you smoke or not!
However, it is important to consider investing on a term insurance even after you reach your fifties. Especially if you are the only earning member of your family and have debts to take care of!
In denouement:
If you are considering getting a term insurance, it is best to get one immediately. You can wait around and keep planning, but as you age, the stakes will certainly get higher.
So to ensure that your family can lead a secure life, it is crucial that you start investing in a term insurance as early as possible.
But make sure to conduct proper research and compare all the term insurance policies and terms to avail the best one! With so many options available in the market, you can get confused with which one will be perfect for you!
So take some time, know about the premium, plan coverage and all additional benefits of each plan to avail the best one possible!
