Here is how you can Lower Your Term Insurance Premiums without Compromising on Coverage?


A term insurance policy works similarly to any other life insurance scheme where the concerned insurer carefully ascertains diverse factors before deciding the premium slabs. While the majority of these factors are pre-defined by the companies, the insured can still take control of the premium rates by lowering them with time or during the purchase and that too without negatively impacting the overall coverage value. However, before shifting attention to the premium lowering schemes, it is advisable that you, as the insured, carefully analyze the declarations, riders, insurance terms and clauses pertaining to the policy— just to make sure that the claim isn’t rejected in future.

In the subsequent sections, we shall talk about the best strategies for minimizing the term insurance premium amount sans repercussions.

It is important to understand that pre-existing health ailments and even conditions picked up during the lifespan can increase the premiums, almost alarmingly. The concept herein is quite simple, i.e. if the insurers believe that you are an unfit person and they need to pay up at some point in time, the premium rates will be constant or might even increase depending on the severity of the condition. Therefore, you must stay away from smoking and drinking as these are expected to increase the mortality rate.

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Moreover, you need to fill up the declaration forms, and if questions synonymous to drinking and smoking are answered in affirmative, the premiums will also soar up. In case you have habits like these, it is in the best interest of everybody to come up with complete disclosures as different term plans categorize smokers on the basis of the fitness levels.

Refrain from Hazardous Professional and Personal Life Choices

An adventurous lifestyle can effectively increase the premium rates as insurers associate a trippy lifestyle with a higher mortality rate. Put simply, if the insurer considers your lifestyle or even professional choices to be dangerous, there are chances that exorbitantly higher premiums are asked for. Therefore, before considering a policy purchase, it is important to analyze whether you are in any way associated with a risky professional or personal life choice.

Purchase Plans Online

If you can purchase a term plan online, there are chances of getting a good deal, especially in terms of premium value. This is because insurers save a lot of overhead costs when the insured fills up details and offers information across digital interfaces. This, in a way, reaches back to the customer, in the form of subsidized premiums.

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Understand the Riders Better

While some term policies offer direct cut on premium rates, provided the insured doesn’t indulge in life-threatening habits and occupations, there are a few special policies where cost saving can be achieved upon adding riders. Insurers like Max Life Insurance provide riders like critical illness and premium waiver at a minimal increment and are better aligned to your requirements, in comparison to the costlier standalone plans.

Stay Healthy, Throughout

Insurers are expected to question you regarding the family history; precisely the ones which concern genetic ailments. Moreover, questions regarding pre-existing conditions are also asked during the policy issuance. Therefore, in order to minimize the premiums, it is advisable to remain healthy and file the disclosures, completely. If you can remain healthy during policy issuance, a well-rounded term plan often takes care of the conditions which are discovered over the course of time.

While these are some of the tried and tested techniques for minimizing the premium slabs pertaining to a term policy, you can also opt for some other strategies, including longer insurance terms, higher sum assured, annual payments, and policy purchase at a young age for effectively lowering the associated premiums and that too without coverage compromise. Remember, if you are looking for the best investment options in India for short-term or long-term, term plans are the way to go. However, choosing the right plan without compromising on coverage is what you must strive for.