How to Save Money on Term Insurance Premiums?

Shubham Kumar

May 5, 2023 — 3 min read

Saving on Term Insurance Premiums

Insurance policies provide financial protection and security to individuals and their families in case of any unforeseen events. One such policy is the term insurance policy. It is a pure protection plan that provides a lump sum amount to the nominee in case of the untimely demise of the policyholder. While it is crucial to purchase term insurance, it is equally important to save money on its premiums. In this article, we will discuss how to save money on term insurance premiums.

Buy a Policy Early in Life
Choose a Shorter Tenure
Opt for an Adequate Sum Assured
Live a Healthy Lifestyle

Buy a Policy Early in Life

The earlier you buy a policy, the lesser the premium. Younger individuals are considered low-risk policyholders by insurers, and hence, they can avail of lower premiums. Moreover, purchasing a policy early in life also provides coverage for a longer duration, which can be beneficial in the long run.

Choose a Shorter Tenure

A shorter tenure implies lower premiums. While opting for a shorter tenure, ensure that the policy covers your financial liabilities, such as outstanding loans, and provides adequate protection to your family.

Opt for an Adequate Sum Assured

It is essential to opt for a sum assured that is sufficient to cover your financial liabilities and provide for your family's future expenses. A higher sum assured will result in a higher premium. However, opting for a lower sum assured can lead to inadequate coverage, which defeats the purpose of purchasing a term insurance policy.

Live a Healthy Lifestyle

Individuals with a healthy lifestyle and no medical history are considered low-risk policyholders by insurers. As a result, they can avail of lower premiums. Adopting a healthy lifestyle can not only help save money on term insurance premiums but also provide numerous health benefits.

Now that we have discussed how to save money on term insurance premiums, let's talk about the Canara HSBC Life Insurance iSelect Smart360 Term Plan, a policy that offers several benefits to policyholders, making it an excellent choice for individuals looking for a cost-effective term insurance plan.

It is a comprehensive term insurance plan that provides coverage until 99 years of age, making it a long-term solution. Moreover, it offers a return of total premium feature, where the policyholder receives the entire premium amount at the end of the policy term if they survive the term. This feature ensures that the policyholder's money is not lost in case they outlive the policy term.

Another feature of the term plan is the block of your premium feature, where the policyholder can choose to fix the premium at inception. This feature can be beneficial for individuals who want to reduce their long-term financial liabilities.

The plan also offers a critical illness cover, which provides a lump sum amount on the diagnosis of any critical illness covered under the policy. Additionally, in case of accidental total and permanent disability, the policyholder is eligible for an additional lump sum amount. The plan also offers a steady income benefit, where the policyholder receives a fixed amount at regular intervals upon attaining 60 years of age.

Conclusion

In conclusion, while purchasing term insurance is crucial, it is equally important to save money on its premiums. By following the tips mentioned above, you can save money on term insurance premiums. Additionally, the Canara HSBC Life Insurance iSelect Smart360 Term Plan provides several benefits to policyholders, making it an excellent cost-effective term insurance plan. Do consider exploring this plan to ensure financial security and protection for your loved ones.