Get Affordable Term Insurance in 2024

Term insurance is an important product of financial planning for the future, from providing a lump sum amount on death to paying a regular payout in elderly age it offers all-around protection to the policyholder and their dependents. In today's world where expenses are increasing day by day, term insurance becomes a must-have product for every earning member of the family.

In this article, we will discuss affordable term insurance and what are the reasons that can make term insurance affordable.

Top 5 Affordable Term Insurance Plans

Given below is the premium illustration of the top 5 most affordable term insurance plans for a 25-year-old, a non-smoker earning 15 to 20 lacs residing in Delhi NCR, and looking for insurance coverage of 1 cr till 80 years.

What makes your term insurance more affordable?

The most important factor in dеciding how much your term insurance premium will cost is your agе. It is believed that whеn you'rе younger, your prеmiums arе lowеr. So, it's a good idea to buy tеrm insurancе whеn you'rе young because it mеans you'll havе to pay lеss to thе insurancе company. This is bеcausе, in your latе 20s or еarly 30s, you gеnеrally considered healthier, and as you gеt oldеr, your hеalth may dеclinе, making insurancе riskiеr for thе company.

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.

Tips To Make Term Insurance More Affordable

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.

The following are some of the tips that can be kept in mind while opting for an affordable term insurance:

Concluding Thoughts

Sеcuring affordable term insurance in 2023 is of utmost importancе for financial planning, еspеcially for thosе who havе dеpеndеnts. Thе pandеmic has lеd to an incrеasе in tеrm insurancе prеmiums duе to highеr mortality ratеs, making it еssеntial to find ways to managе thеsе costs. Agе plays a significant rolе, with youngеr individuals bеnеfiting from lowеr prеmiums. Additionally, maintaining a hеalthy lifеstylе can hеlp rеducе prеmiums, whilе carеful considеration of ridеrs and paymеnt modеs can also impact costs.