The insurance industry in India has witnessed some of the most troubled times during the pandemic. The nation saw a high mortality wave, especially during the second wave. All this, in turn, put pressure on the insurance firms as the number of claims exponentially increased amidst the rising Covid-19 cases.
As a result, insurance premiums, including the term insurance premiums, shot up in 2021. So much so that the term insurance price index shot up by 4.18 % in the fourth quarter of 2021 alone. Industry watchers believe that this trend of premium hikes might continue for a while.
Therefore, you must be aware of how to keep your term insurance premium low during these uncertain times.
The insurance industry is reeling under pressure from the rise in claims, and term plan premiums have already become costlier. Experts predict that the term insurance premium rates might go up further by 50- 70 per cent in 2022. This means that you are more likely to pay higher premiums if you wait for too long.
However, if you buy a term plan now, your premium amount would be locked in at the current price. You will continue paying the same premium for the entire term even if the prices hike in future.
Take The Age Advantage
A 45-year-old individual can end up paying an 80.8 per cent higher premium by delaying the purchase of a term plan by ten years.
Term plans charge a relatively lesser premium for younger individuals as they are considered to be less prone to health issues. Moreover, people have lesser responsibilities and financial burdens while they are young. As you grow old, you will have to shoulder various goals and responsibilities such as marriage, buying a house, children’s education, etc.
Therefore, it is wise to purchase term insurance while still young. Apart from getting the benefit of lower premiums:
- You will develop a healthy habit of managing your money from a young age.
- As you grow in your career, you will keep getting pay raises, but your premiums will remain the same, making it easier to maintain your term plan.
- Adopt a Healthy Lifestyle
Insurance underwriting rules have become more stringent post-pandemic with more focus on lifestyle and habits. For instance, term plans can be 50 per cent costlier for smokers compared to non-smokers.
Therefore, you should focus on adopting a healthy lifestyle, not just for cheaper premiums but also for a prolonged and happy life.
Notably, term insurance plans have gained tremendous popularity since the pandemic. People are more interested than ever in buying these pure protection plans due to their affordability, further contributing to their rising costs in the future.
Therefore, buy a reputed term plan now to have peace of mind and remain protected from any number of future price hikes. Touch here buzfeed Click here magazinevibes Visit here theedgesearch Touch here thenewsinsider Visit this website soap2day Learn more about healthworldnews