Term insurance is a popular insurance policy that provides financial security to your family in case of your untimely demise. It is a pure protection policy that offers life coverage for a specific period of time, typically ranging from 5 to 30 years. The policyholder pays a premium for the term of the policy, and in case of their death during the term, the beneficiary will receive a death benefit payout.
While the concept of term insurance may seem simple, there are several factors that can affect your term insurance premiums. In this article, we’ll discuss five factors that can impact your term insurance premiums and provide you with insights on how to select the best term insurance plan for your needs.
Age: Your age is one of the primary factors that influence your term insurance premiums. The younger you are, the lower your premiums will be. This is because younger people are perceived to be healthier and less likely to make a claim. Therefore, if you’re thinking about getting term insurance, it’s best to buy it early on in life.
Gender: Gender also plays a role in determining your term insurance premiums. Women typically have lower premiums than men because they have a longer life expectancy and a lower risk of death at any given age.
Health condition: Your health condition is another significant factor that can impact your term insurance premiums. Insurance companies will ask you to undergo a medical examination before providing you with coverage. Based on the results of your medical examination, your premiums will be determined. If you have a pre-existing medical condition, your premiums may be higher.
Family medical history: Your family medical history is also taken into consideration while determining your term insurance premiums. If you have a family history of illnesses such as cancer or heart disease, your premiums may be higher.
Lifestyle: Your lifestyle can also impact your term insurance premiums. If you smoke or consume alcohol regularly, your premiums may be higher. Insurance companies perceive smokers and drinkers as high-risk individuals, which increases their risk of death.
When it comes to term insurance plans, the Canara HSBC Life Insurance iSelect Smart360 Term Plan is an excellent option to consider. This plan offers several benefits that make it a top choice for individuals looking for a comprehensive and flexible term insurance plan.
Option to get a return of total premiums paid in case of no claim: The iSelect Smart360 Term Plan offers a unique feature that allows policyholders to receive the total premiums paid if they do not make any claims during the policy term. This feature ensures that you get a return on your investment in case you do not require insurance coverage.
Option to Block Your Premium at Inception and increase coverage: This feature is beneficial for individuals who want to increase their coverage amount over time. With this feature, you can block your premium at the inception of the policy and increase your coverage up to 100% of the base sum assured over the next five years.
No future premiums if diagnosed with covered Critical Illness or occurrence of Accidental Total & Permanent Disability, if opted: The iSelect Smart360 Term Plan offers coverage for critical illnesses and accidental total and permanent disability. If you opt for this feature and are diagnosed with a critical illness or experience accidental total and permanent disability, you will not be required to pay future premiums.
Life cover till 99 years of age: The plan offers life coverage up to the age of 99 years. This ensures that you have coverage for the entirety of your life and can provide financial security to your family in case of your untimely demise.
Conclusion
In conclusion, term insurance is an essential policy to consider for individuals who want to provide financial security to their families in case of their death.