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How to Purchase Lowest Premium Term Insurance Plan?

If you are new to buying insurance, then it is quite obvious that trusting an insurer and choosing the right insurance plan can be a bit confusing and risky. In order to choose the most affordable and right term plan, your investment portfolio should consist of products that match your needs and work towards the achievement of your financial goals.  

Having a term insurance policy is must to have for every individual. However, it is a win-win situation if you get the right type of term insurance plan at a low-cost. While purchasing a term plan in India, it is possible enough that the plan you choose may be ‘cheaper’ but not really be what you want. Thus, at the time of zeroing in on a policy, it is important to choose an affordable plan without compromising on the cover you need.

In todays, time where there are numerous insurance products to choose from, selecting a right plan that best suits your needs is quite a tricky task. There are several aspects that should be kept in mind while choosing the most appropriate and affordable and best investment plans.

As your brainstorm on how to reduce the cost of the term plan without compromising the coverage,

Here are the other important things that you should consider in that process.

Choose the Right Kind of Coverage

There are various types of life insurance policies available in the market, but the type of coverage you choose will have a drastic impact on the cost of the policy. Whole life insurance policy coverage is the most costly cover to take out, as it will certainly pay out the amount at some point of time. On contrary to this, if you take term insurance then you will be covered only for the term period of the policy. The insurance companies set the premium rate of the policy by looking at the risk of paying out during the term of the policy.

For many insurance buyers, term insurance is considered as the most suitable plan to purchase in many circumstances.

Purchase Life Insurance Online

Purchasing a term insurance plan in India is much more pocket-friendly than purchasing it offline. Insurance companies spend a huge amount of money and time in administrating and managing the sales of insurance offline.  When you purchase a policy online, you help insurers to save a lot of money, which is then passed on to you as a policy discount.

Moreover, buying a policy online is not only a hassle-free process but also saves a lot of time. Through the online process, you can compare the quotes of various policies and choose the best plan as per your own requirement and suitability. 

Know the Product and Your Goal

Doing a proper research is very crucial before opting for a term plan. It is important to understand the benefits and features of the plan so that you can be aware of what you are investing and can get ensured about your investment. You can compare the plans online and choose the most suitable plan according to your own requirement. You can avail maximum benefits by analyzing the purpose of purchasing an insurance plan. As the policy tenure of a term plan is very long, it is very important to know what your term plan offers and will it sufficient enough to take care of the financial liabilities in a long-term.

Premium Paying Options

 Term plans usually offer four options of premium payment. According to your own comfortability, you can choose from the option single premium payment, regular premium payment or limited premium payment. Under single premium payment, the premium for the entire plan is paid upfront as a lump sum. In limited premium pay, you can pay the premium in a particular number of years i.e. 5, 7 or 10 years. Under regular premium pay, the insured can pay the premium for the entire term of the policy.

Limitation and Exclusions

As investment and returns are not always guaranteed therefore it is important to know the limitation and exclusions on the sum assured in case of permanent disability or death. Knowing the limitation and exclusion can help you know that what is included in your plan and what not. Moreover, by knowing the limitation offered by the plan you can actually evaluate that how much insurance coverage you may need in order to secure your family’s future.

Go for a Trustworthy Insurer

You should choose an insurer who is not just familiar with the insurance sector but is reliable and well known. You can also go to the insurance companies’ website and check the reviews of the different customer in order to know more about the company from which you are planning to buy a plan. Moreover, these days many insurance companies’ provide 24X7 customer support service where you can call and clear all your doubts and queries regarding the policies.


As in today’s time to fulfill the requirements of the customers, many insurance firms are coming up with a wide range of tax saving investment and insurance products. It is important to know, that how can you choose the most beneficial plan n affordable rates. You can compare the plans online and check the details including premium quotes, their contract term, benefits and limitations in order to make a wiser decision.

Wrapping It up!

How much these factors affect the premium rate of the cost of the policy depends on the underwriting method and rating of each insurance companies. Thus, it is always suggested to compare premium quotes of different insurers while purchasing a term insurance plan. Besides this, you can always make use of these tips in order to reduce the cost of your life insurance policy.

Written By: PolicyBazaar - Updated: 18 January 2021
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