How to Buy Term Insurance If You Earn Less
Hectic work life, unhealthy eating habits, and addiction to alcohol and smoking are factors that are hampering the health of many people today. With the growing risk of the Coronavirus (COVID-19) pandemic, life is quite uncertain today. Thus, it is essential to take the necessary steps to secure your family’s financial future in case of an unforeseen circumstance.
One of the ideal ways to safeguard your family’s financial goals and needs is by investing in a term insurance plan. Many people refrain from investing in such plans, mainly because of the expenditure towards the premium. However, they should know that term plans comes at an economical premium, making them an ideal policy, especially for those who do not have a high income.
If you are searching for the right term plan, it is advisable to use the term insurance plan calculator, as it allows you to compare the features and premiums offered by various insurers. Such a calculator makes the overwhelming task of getting the best term plan easier than ever. If you are worried about your income to expense ratio, a term plan can prove handy. Here are some helpful pointers that you should consider to avail of better premium rates.
Buy at an early age
The term insurance age limit is 65 years until when you are eligible to get a plan. However, if you buy term insurance online when you are young, you can save heavily on the premium. You are less susceptible to chronic diseases at an early age. Therefore, the possibility of an unfortunate incident occurring is quite low, which results in an economical premium. The premium rises with age. So, you must invest in a term plan when you are in your 20s or early 30s to get a better deal.
Purchase through the online mode
You can get a tern plan either through the offline or online method. When you buy term insurance online, you can better get a plan at a much cheaper premium as compared to purchasing it offline. This is because you are dealing directly with the insurer. There are no insurance agents involved here. Therefore, the premium is considerably low. Besides this, it is easier to compare the premiums offered by various insurers, helping you to select the best plan at an economical cost. Hence, buy a term plan through digital means and save a considerable amount every year.
Select riders as per your needs
Insurers offer different types of riders (add-ons). Riders, like accidental death, waiver of premium, critical illness, income benefit, and others are beneficial, as they broaden the term insurance plan’s scope. Though riders come at a slightly extra premium, investing in them can prove quite worthy. Select riders that meet your needs and requirements so that you do not end up paying anything additional for add-ons that may not be valuable.
Opt for an annual premium payment frequency
You have the option of paying the term insurance premium monthly, quarterly, semi-annually, or annually. Therefore, you can choose a suitable interval as per your convenience. However, if you pay the premium annually, you can save a lot. If you find it difficult to pay the premium yearly, you can choose any other alternative as per your flexibility.
The term insurance age limit is up to 65 years. However, you should not even wait a day to invest in it when you can benefit from buying a term plan early. Secure the financial goals and needs of your family members today to ensure them a better tomorrow even if you are not there to take care of them.
