By Admin 
Term Insurance Policy: Term insurance is actually your family’s financial safety net. A large cover is available at a low premium and in case of any untoward incident, the family gets a lump sum amount so that responsibilities like household expenses, children’s education and loans can be taken care of. Along with safety, tax benefits are also available in this. Due to which this plan becomes more economical. Now if we talk about age.
So 30 years is considered the best time to start this plan. Responsibilities are increasing in this period. But the health profile generally remains strong. Therefore the premium comes less. The direct advantage of taking the policy early is that the cover is locked in at a lower rate for a longer period. Know how much premium you will have to pay for term insurance at this age.
How much cover is required according to salary?
Financial experts generally recommend that term insurance cover should be at least 10 to 15 times your annual income. If your annual salary is Rs 6 lakh. So a cover of around Rs 60 to 90 lakh can provide basic security. For those earning Rs 10 lakh annually, a cover of Rs 1 crore to Rs 1.5 crore can be a sensible option.
This amount should be decided keeping in mind the family’s expenses, loan and future needs. If you take a cover of Rs 1 crore at the age of 30, the annual premium can be around Rs 8 thousand to Rs 15 thousand. Provided that health is normal and there is no smoking habit. This premium may be higher for smokers.
What factors decide the premium?
Term insurance premium is not decided by salary alone. Your age, medical history, family health records, job profile and lifestyle also play an important role. If you are fit at the age of 30 and do not have any serious illness, then companies offer lower rates. Policy term also matters. If you choose cover up to 60 years, the premium will be less.
Whereas the amount can increase if the tenure is taken up to 70 or 75 years. Apart from this, monthly, quarterly or yearly payment mode also affects the premium. The premium is often slightly lower when taking an online policy. Because agent commission is not added in between. Choosing a policy by making the right comparison can make a big difference in the long run.
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