Thursday, 2 January 2014
What Makes A Term Insurance Premium
Ever
since its inception, term insurance plans have been gaining momentum and
becoming a huge attraction for insurance seekers out there. In the urban India,
due to unseemly lifestyle and increasing awareness, buying a life cover has
become a must. People are becoming more and more prone to various illnesses and
accidents etc. To counter this, a term insurance protects a person from
suffering from huge losses incurred during unfortunate events. 
A premium rate is the money charged by
the company for the coverage they provide with. With so many providers in the
market today, each one of them is coming with their own unique set of plans and
cover benefits. While searching for a term insurance policy,
it is important to calculate your premium rate beforehand; which can be done
using online term insurance calculators, available almost on every insurance website these days.
There are a bunch of factors that go
into determining the premium cost for an insurance policy. Age is one
imperative factor. The younger you are, the cheaper will be the insurance. This
is simply because you are less likely to pass away while you are young. That is
why most agents would recommend buying one at a young age.
Another deciding factor that comes into
play here is you medical records. You might have to undergo a medical exam to
look for things that might raise health concerns or future problems like high
blood pressure etc. So, the healthier you are, the lower will be the rates.
It’s a wonderful thing to have gender
equality, but there is something our gender indicates, its our life expectancy.
Women tend to live longer than men as a general rule. This means, women will
pay generally lower rates for a term insurance policy.
When it comes to term insurance, the
tenure is fixed. So make sure that you select a long tenure considering your
current financial and physical situation. But remember, if you select a long
duration, you need to be having the finance to be able to pay the premium also.
Last but not the least, if you know what
a term insurance is, you will know
that the sum insured is the most decisive factor. To put it simply, higher the sum
assured, higher would be the premium and vice-versa.
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