5 Ways to make affordable Term Life Insurance a reality

Affordable Term insurance

Life is unpredictable. This maxim is perhaps the most apparent today, with the COVID-19 still wreaking havoc around the world. The virus has affected nearly 132 million people worldwide and has claimed over 2 million lives so far. In India alone, about 166 thousand deaths have been reported to date (and the count keeps increasing every day). Adding to the obvious health crisis is the economic downfall and shortage of income. While many have lost their jobs, families who’ve lost their primary breadwinners are facing bigger financial hardships every day. 

 

Regardless of the current or forthcoming impact of COVID-19 on you and your family, the pandemic has affected and will continue to affect household finances for years to come. Prioritizing financial planning can help your family tide past such a crisis in your absence and help them achieve their life goals as planned. The current pandemic situation has reinforced the need to buy term insurance plans to protect your loved ones’ future.

 

Term insurance plans shouldn’t burn a hole in your pocket.

If you are worried that buying a term life plan will escalate your expenditure, you might want to reconsider. Term plans are one of the most affordable life insurance plans, and the coverage they offer can offset their costs easily.

To safeguard your family, after your death, here are five ways you can make your term life insurance affordable for yourself:

 

1.Buy a policy when young

The best way to lower your premiums and make the insurance cover easily fit your budget is to buy a policy when you’re young. Term insurance plans are less expensive when you are in your 20s and early 30s, in comparison to when you are older. Hence, it is best to buy a term policy when younger to get low premiums and wider coverage.

 

2.Maintain good health

Insurance companies charge lower premiums from you if you are healthy and do not have habits like smoking, drinking alcohol, etc. Thus, you can get good coverage at affordable premium rates. So, the objective is to work towards maintaining good health and staying away from smoking, consuming alcohol, stress, and other lifestyle diseases. 

 

3.Opt for a customized insurance plan

Customized insurance plans that provide a cover that fit your requirements and budget are also a great option. Insurance covers like the Aviva Life Shield Premium plan allow you to customize your insurance policy just like you modify your pizza or a subway sandwich. This tailor-made term insurance plan allows you to have an increasing, decreasing or flat sum assured as per your responsibilities. You also have the freedom to pay premiums – monthly, yearly, half-yearly or just once - as per your financial capacity. You can also choose your premium payment term to be for five or ten years and enjoy insurance cover up to the age of 80. This makes the Aviva Life Shield Premium plan an efficient cover for you and your family against unfortunate situations. 

 

4.Consider paying annual premiums

Another option to make an insurance plan more cost-effective is to pay your premiums annually. Monthly, quarterly, half-yearly premiums are generally calculated by multiplying with a modal value that increases the premium amount that you pay in a year when compared with the premium amount paid once a year.

 

5.Review insurance policy at regular intervals

 True financial prudence is in reviewing your policy and sum assured at regular intervals. This is because, with each life stage, your personal needs change and also your responsibilities increase or decrease. For example, you might need a less sum assured in the early years of your life, a large sum when you get married and have children, and a smaller sum again when you retire. With plans like Aviva Life Shield Premium, you can easily choose an increasing or decreasing sum assured for your term policy according to your life stage.

 

Benefits of buying a term plan

Buying a term plan provides you with the following benefits:

 

  1. Cost-effective coverage:  Term plans are pocket friendly, and their premiums are significantly lower as compared to other life insurance products. With the Aviva Life Shield Premium plan you can choose to pay premiums for the initial five or ten years and enjoy coverage till the age of 80 With the life cover and claim payout method of your choice.
     
  2. Convenience:  You can choose to pay premiums at a frequency that suits your budgetThe Aviva Life Shield Premium allows you to pay your premiums in a single, yearly, half-yearly or monthly mode.
     
  3. Additional benefits: The best part about term plans are they offer extensive coverage by offering additional benefits at budgeted prices. The Aviva Life Shield Premium provides Add-on benefits like the Accidental death Benefit which gives an additional payout in case of a fatal accident and a Waiver of Premiums benefit that waives off all future due premiums in case of accidental permanent total disability.
     
  4. Tax benefits: Term plans serve a dual purpose. They offer financial protection to your family and also give tax benefits to you. Premiums paid for term plans may be exempt from taxes under Section 80C of the Income Tax Act, 1961.
     

When you think of how daunting the COVID-19 times have been, you will understand how much you need a term plan. With affordable and customized term plans like the Aviva Life Shield Premium, your family can be well-prepared to face unforeseen times.

 

 

AN Nov 52/20
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