Cheapest Life Insurance in India:
Life is unstable and we need a backup plan to provide financial security to our family. In case of sudden demise, the family might face financial difficulties due to the death of the earning member of the family. The main scope of a life insurance policy is to provide financial security to your loved ones after your death. There are several life insurance policies available in the market today, and several of them claim to be the cheapest out there.
What is the Cheapest Life Insurance?
One of the main reasons people say they haven’t bought life insurance is because they believe it to be too expensive. Different Life insurance companies charge different premiums for the same amount of coverage. The cheapest life insurance is one that provides affordable premiums with all possible add-ons. Term life insurance is typically the cheapest form of life insurance because it has no cash value and only covers you for a specific number of years.
Factors that determine Cheap Life Insurance Policy:
Some Factors that determine Cheap Life Insurance policies are
- Age: Age is the most important personal characteristic for determining your life insurance cost. The higher the age of the policyholder, the higher would be the cost of the premium. Life insurance premium increases with the increase in age of the prospect due to the high mortality ratio which can be observed to increase as the age increases. The life insurance calculator considers the mortality ratio while calculating the life insurance premium. The higher the mortality ratio, the higher would be the premium charged by the insurance company.
- Gender: Gender determines the life insurance premium to be paid by the customer. It can be noted that the premium for Women would be considerably lower than that of Men. This is because women are more likely to live on an average 5 years more than men which means that the mortality ratio for the same period would be less in women. This results in life insurance premiums being paid by women when compared to men. If we calculate the premium of men and women with all the other factors affecting life insurance pricing remaining constant, the premium of women would be at least 10-15% less than that of men.
- Length of term: In a term life insurance policy, the length of the term will decide the premium payments. The longer the term, the more total premium payments you will make.
- Coverage: The major factor determining life insurance premiums using the life insurance premium calculator is the type of life insurance policy opted by you. There are many types of life insurance policies having different premiums but all of them cover the life of the insured. Also, there are many insurance companies in the market offering life insurance policies that have different premiums. The premium of the company depends on the service levels also. It is advisable to opt for a life insurance company that provides better service and extensive coverage at the most affordable premiums.
- Health history: The health history of the prospect also plays an important role in deciding the premium to be charged by the insurance company. Before selling you a life insurance policy, the insurance company usually will require a medical exam. It also reviews copies of your medical records to determine your current health and medical history. If you have serious pre-existing diseases, like heart disease, or have had one in the past, your premiums will likely be higher. Other factors taken into consideration include weight, blood pressure, and cholesterol levels. So, those who are in excellent health will have more affordable life insurance.
- Lifestyle: The insurance cost will increase if your lifestyle is risky i.e. smoking, drinking, or consuming tobacco. These habits can cause various diseases such as Cancer, Heart attack, Diabetes, etc. which increases the chance of death in the prospect. Hence the life insurance premiums for these categories are on the higher risk side when compared to people without these habits. In general insurance companies accept proposals from people who are occasional drinkers and smokers and the proposal are verified by the underwriters before accepting the risk.
- Hobbies and occupation: If you skydive, scuba dive, or engage in other potentially dangerous recreational activities, you generally will pay higher life insurance rates. For insurance, some occupations such as Persons working in Chemical, Fire Crackers, Army and police, etc. services are classified as Hazardous and pose a high level of risk for the insurance companies in terms of death claims. These occupations have higher mortality rates and thereby higher life insurance premiums.
- Family Health History: Lastly but most importantly the family history of the applicant would also be considered before deciding the life insurance premium using the life insurance premium calculator. Many diseases would be passed to their offspring and are called hereditary diseases. Some of the common hereditary diseases include Sickle cell disease, Haemophilia, Huntington’s disease, etc. which can be passed from the parents to their children. Underwriters consider these hereditary diseases at the time of deciding the life insurance premium to be paid by the applicant.
What are the Ways to Get a Cheap Life Insurance Policy?
- Buy a Term Life Insurance Policy: There are two main options to buy a life insurance policy one is term life insurance and another one is Whole life insurance. A term insurance policy is the cheapest life insurance policy that provides cheap life insurance for a period when you need it most, such as the term of your mortgage. Term life policies offer the option to convert to a whole life insurance policy it’s a way to switch to lifelong coverage when you needed.
- Buy Life Insurance Policy Earlier: Age and health history are the main factors that determine the life insurance premium. The younger and healthier you are, the fewer premiums you will pay for coverage. So if you want to get cheap life insurance, buy sooner rather than later.
- Avoid unnecessary Add-ons: When you buy life insurance, some life insurance companies offer add-ons such as wavier of premium rider, critical illness riders, etc. You can get cheaper life insurance by avoiding riders you don’t necessarily need.
- Find the right coverage: One of the major steps towards obtaining perfect insurance is by gathering information about all available policies and making a comparison among them. But to do this you need to first have a clear idea about your requirements. Also, you need to be aware of the minimum amount of insurance coverage that the law of the country demands. Once you are well aware of these facts, comparing policies across all carriers and picking the correct one will become an easier task. Keep in mind that companies providing the greatest discounts need not provide the most affordable policies as their rates might be very high. Always select a policy seeing the final price after deducting the discounted amount.
- Find the right provider: You can buy life insurance either through a broker or company agent or you can buy it online through an aggregator. The disadvantage of buying a policy from a broker or an agent is that they tend to look more at the benefit of the company they represent and that of their own rather than thinking about the benefit of the client. Also, they need to be paid a commission for their services. If you buy a policy online by gathering and comparing data through an aggregator, you get unbiased information, as well as no commission charges, are involved in the process.
- Compare before purchase: Compare different cheap life insurance policies from various insurers through online aggregators, like www.policybachat.com, which is a good way of reducing the premium to be paid. By comparing, you get a clear picture of which policy offers the maximum coverage as per your requirements, so that you do not land up paying an unnecessary premium.
How to Get Cheap Life Insurance
Cheap term life insurance plans are sorted from our online portal where the basic process is to fill in the details of the applicant for quote generation such as gender, occupation type, monthly income, date of birth, name of the applicant, Email address, bank account details, etc. Cheap term insurance doesn’t include any extra coverage in the form of add-ons such as Waiver of premium, Accidental disability, etc. We determined the cheapest life insurance companies to help you find the right company to fit your budget.
Cheap life Insurance Premiums can be found on our portal you can avail yourself of low premiums with top insurers. The cheapest life insurance companies along with the benefits opted are listed below. The cheap term life insurance quotes are calculated for a 29-year-old Male, with no Tobacco habit, an annual income of 10 Lakhs, and a Salaried individual. Premium payment mode is Monthly and the Sum assured is 2Crores, Payment term is up to retirement (65 years).
||Premium per month
||Waiver of premium on Accidental disability & Early claim on terminal illness
||Sampoorna Raksha Supreme
|PNB Met life
||Mera Term Plan Plus
|Canara HSBC OBC
||I Select Star
||iTerm (Life Protect)
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