Let's dive in: Term Insurance Premium increases every year

We all love our family and want to live by their side till we take our last breathe. But have you ever thought of a situation where the sole breadwinner of a family meets with an unexpected demise? Where the individual has a responsibility to serve more than 2 dependants, how do they all manage? To overcome this challenging scenario in our family, term life insurance was introduced. And it becomes quite obvious to buy a policy which can support our family in tough times when we're gone.

But the only thing that concerns us vividly is- the increasing term insurance premiums. It's not always the case that your term life insurance premium increases for instance, or anytime without you knowing about the same. In this article, we'll get to know- in which conditions and why term insurance premiums increase, and how we should combat with increasing yearly premiums.

Do Term Insurance Premiums increase every year?

The premium amount to be paid after purchasing a term life insurance increases in specific circumstances. Based on several factors like- the renewal of your plan, adding benefit riders to it, increasing sum assured amount, inflation or CPI, and more.

Some of the policies have automatic yearly increment options which make it feasible to get a higher sum assured amount.

Aspects of Premium increasing every year

This table illustrates the considerable factors which can affect your premium amount:

Differentiating Increasing and Level Premiums

Understand here how should you choose between a level premium or an increasing premium:

How to Avoid Increasing Premiums on Term Insurance?

Premiums on your term insurance can make you feel irritated or sometimes financially shrinked. But you can avoid the increment of your premiums by following these steps:

Bottom Remarks

Every term insurance plan comes in handy and personalized with its given features aligning towards your needs. But you have to pick out which policy you require according to your affordibility and future goals. With a customizable feature, it is tough to manage paying hefty premiums every month, that too with an increasing yearly amount.

But you can gain a confidence of purchasing only the right plan for you at an affordable premium range. Policyx.com gives you the freedom to compare a tailored plan for the security of your loved ones.