How to Get Affordable Term Insurance in 2023?

Term Insurance is one of the most crucial aspects of investment in the financial planning portfolio. It holds a greater significance for everyone, especially those who have financial dependents such as a spouse, kids, or parents. In today's era where everyone is occupied in some kind of earning methods and money contributed by each individual is important to run a family; term insurance becomes a must-have for every earning member of the family.

Term Insurance helps the breadwinner of the family to ensure that the financial stability of the family is never interrupted in their absence and the plans made for the future are accomplished despite their demise. Moreover, term insurance is one of the rarest personal finance plans that allow a person to accumulate a large amount of corpus by paying a nominal premium fee for the future.

However, with the constant increase in term insurance premium prices, term insurance plans are turning out to be a little expensive for people who are planning to buy a best term insurance plan in the future. However, inflation shouldn't be the case to avoid purchasing a term insurance plan as it can lead to a bigger loss if compared to paying a higher premium.

Why is Term Insurance becoming expensive?

Since the hit of the pandemic, the term insurance companies have been feeling under the pressure due to the sudden increase in the mortality rate in the country. As per media reports, Life insurance companies in India have received four to five times COVID-related death claims in FY 2021 as compared to the last fiscal year.

The increased number of deaths is directly proportional to the number of claims hence, the humongous acceleration in the payouts by life insurance companies forced them into sudden losses. Therefore, to balance out those losses, the premium of term insurance prices is pushed on the higher side.

Since the havoc spread of COVID-19 in the country, the term insurance premium has witnessed a hike thrice of a considerable amount in each round. In June 2020, the term insurance plans premium marked a steep hike of 20-25%, then in March 2021, there was a minimal increase of 4-5% and now, the premium prices have grown up by 30% consecutively in December 2021.

While the industry experts expect the term insurance premium prices to stabilize after the unavoidable acceleration, considering the regular reports of deaths either due to COVID-19 or any other disease and now the new variant being spread worldwide, the situation for the further increase is to wait and watch.

Thus, the outbreak of new COVID-19 variants has increased the necessity of having a term insurance plan manifold. Irrespective of the premium price rise, term insurance plans should be purchased to safeguard your families from any uncertain situation. However, there are certain options to make the premium amount of a preferable term insurance budget-friendly for policyholders.

Term Insurance Companies

Check and compare plans from 21 IRDAI-approved term insurance providers before purchasing a term plan.

Ways to make Term Insurance Premium prices affordable

It is pertinent to know that the increase in the price hike is not witnessed across all categories of buyers. The increase in price for term insurance plans is subjective to the age, income, and sum insured amount chosen by the respective person. Additionally, people who are already having a term insurance plan don't need to worry about the price hike as the premium prices remain the same throughout the policy tenure.

Concluding Thoughts

Understanding the fact that assuring the future of the family and loved ones is not an option but a necessity; the premium should be the last deciding factor while purchasing a term insurance plan. Don't let a few bucks risk the future of your family when it comes to buying term insurance.