Budgeting for Protection: Choosing Term InsuranceMay 01, 2023
How to Choose the Right Term Insurance Policy for Your Budget?
When it comes to securing your family’s future, term insurance is an essential tool. Term insurance policies offer financial protection to your family in the event of your untimely death. However, choosing the right term insurance policy that fits your budget can be overwhelming, given the numerous options available. Here’s how you can make the right decision and choose the right term insurance policy for your budget.
FACTORS THAT AFFECT YOUR TERM INSURANCE PREMIUM
Before we discuss how to choose the right term insurance policy, let’s understand the factors that affect your term insurance premium. Some of the significant factors that determine your term insurance premium include:
Age: The younger you are, the lower your term insurance premium will be.
Gender: On average, women tend to have lower term insurance premiums than men.
Health Condition: A healthy individual is likely to have lower term insurance premiums than someone with a pre-existing medical condition.
Smoking Habits: If you are a smoker, you are more likely to pay a higher premium than a non-smoker.
Coverage Amount: The higher the sum assured, the higher the premium.
Policy Tenure: A longer-term insurance policy tenure typically translates to a higher premium.
Now that we know the factors that affect your term insurance premium let’s understand how to choose the right term insurance policy for your budget.
CHOOSE A PLAN THAT FITS YOUR BUDGET
Before choosing a term insurance plan, it’s essential to decide on a budget. Once you have a budget in mind, you can begin your search for a term insurance plan that fits your budget. Look for a plan that offers an adequate amount of coverage without burning a hole in your pocket.
One such plan that you can consider is the Canara HSBC Life Insurance iSelect Smart360 Term Plan. This term insurance plan is designed to provide comprehensive protection to your family at an affordable cost. The plan offers life coverage till 99 years of age, making it an ideal choice for long-term protection.
BLOCK YOUR PREMIUM
The term plan offers a unique “Block Your Premium” feature that allows you to fix a premium at the inception of your policy. This feature ensures that your premiums remain constant for the entire duration of your policy. The block your premium feature is a great way to lock in your premium and save money in the long run.
RETURN OF PREMIUM
The return of premium feature ensures that you receive all the premiums paid during the policy term if you survive till the end of the policy. This feature makes the plan an excellent investment option and provides an additional savings component.
NO FUTURE PREMIUMS IN CASE OF CRITICAL ILLNESS
The term plan offers a critical illness cover that provides a lump sum payment on the diagnosis of a critical illness. The plan also waives future premiums in case of a critical illness diagnosis. This feature ensures that you don’t have to worry about paying premiums during your recovery.
STEADY INCOME BENEFIT
It also offers a steady income benefit that provides a monthly income to your family in the event of your untimely death. This feature ensures that your family’s monthly expenses are taken care of even in your absence.
CHILD CARE BENEFIT
The plan also offers a child care benefit that provides an additional lump sum payment in case of the policyholder’s untimely death. This benefit ensures that your child’s future is secured, even if you are not around.
Choosing the right term insurance policy for your budget can be a daunting task. However, by considering the factors that affect your term insurance premium and calculating the apt coverage required, you can stumble upon the perfect plan.
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