A term insurance has long been acknowledged as one of the best investments a person can make. A term insurance is ideal owing to its low cost and the protection it offers to beneficiaries long after the policyholder is no more.
A term insurance plan will allow the policyholder to live in peace with the knowledge that their family members will be well looked after even if they are no longer around. It is thus, one of the first investments made by a person when they first start earning. A term policy such as the iSelect Smart360 Term Plan, available on Canara HSBC Oriental Bank of Commerce, will enable you to customize the plan in such a manner that you will be able to add your spouse in the same policy at a discounted rate, and you will also be able to select from multiple options in terms of premium payment and for receiving benefits.
There are several factors that you need to consider while buying a life insurance plan. The most important factor that decides your premium is, of course, your life expectancy. Age decides the condition of your health, the number of years you will continue to pay premiums and how soon the insurer will be required to make the payout.
As a result, your life expectancy is the first thing ascertained when you approach an insurer for a life insurance policy. The younger you are when you opt to purchase the term policy, the longer you are expected to live. This suggests to the insurer that you pose a lower risk to them in terms of having to settle claims and thus, they are willing to reduce the amount you pay as premiums.
As you age, and if you approach an insurer for a fresh term policy, your premiums are likely to be significantly higher. This is because your advanced age makes you more prone to illnesses or diseases that could result in the insurer having to settle your claims sooner rather than later.
Life expectancy is thus the most important factor that decides the cost of your life insurance premium. However, aside from life expectancy, there are several other factors that determine the amount you will be required to pay as premium. With digitalization of the insurance industry, it is now possible to understand how much premium you are expected to pay from the comfort of your own home. You can select customizations such as the coverage you want, pick the covers you wish to add and understand immediately the premiums you will be required to pay.
1. Gender: Studies over the years have demonstrated that women tend to live longer than men do. This trend has been picked up on by the insurance industry, and premiums for life insurance policies are often less expensive for women than they are for men.
2. History of Health and Illnesses: An insurer will also enquire about your medical history including the diseases you have suffered from, any pre-existing conditions as well as look into genetic disorders that may have been passed down to you. Someone with a history of serious illnesses will be asked to pay higher premiums as compared to somebody who has suffered relatively less. This is because insurers believe that if somebody has been ill more often in the past, they are more of a risk to insure as compared to somebody who has not had any serious diseases.
3. Unhealthy Habits: When you approach an insurer for a term insurance policy, be prepared to answer questions regarding your lifestyle and habits. The insurer will want to know about your tendency to smoke or drink or indulge in other unhealthy habits. A regular smoker is likely to seem like a greater risk to an insurer, and will therefore be asked to pay higher premiums as opposed to somebody who does not smoke.
Your premiums on your term plan will be dependent largely on your health but also on other factors such as those listed above. Opt for the iSelect Smart360 Term Plan, available on Canara HSBC Oriental Bank of Commerce, and get your policy immediately by paying premiums online. You can select the covers you want such as Accidental Death Benefit, Accidental Total & Permanent Disability Benefit and even Child Support Benefit. The plan can be customized according to your requirements from the comfort of your home.
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