Life Insurance Premiums Made Easy: Know More, Save More

Life insurance is synonymous with protection. It is a contract between the buyer and the insurance company, wherein the latter provides a sum assured as financial security to the former’s dependants, in the event of an unforeseen demise. The sum assured, also called life cover, is either paid as a lump sum amount or staggered across a period as defined during policy purchase. 

The life cover amount depends on life insurance premium 

If you’re wondering what life insurance premium is, it is simply the payment you make to the insurer towards the sum assured. The life insurance premium can be paid monthly, quarterly, half-yearly, yearly, or as a one-time payment, depending on your agreement with your insurer. But it is extremely important that you do not miss a single payment as term insurance premium is a fixed amount and must be paid for the length of the premium paying term to keep the policy valid. 

Types of Life Insurance Premiums 

IndiaFirst Life Insurance has 4 main types of life insurance plans, and the life insurance premium depends on the plan you take.  

1. 1) Term Plan 

IndiaFirst Life Plan and IndiaFirst Life Plan Guaranteed Protection Plus Plan are two affordable term life insurance plans that offer high life cover for low premiums. 

• Premiums start for as little as Rs. 28.46 per day  

• Return of Premium option refunds premiums paid on policy maturity 

• Staggered death benefit payment  

• Premium waiver for 40 critical illnesses and permanent disability 

• Get tax deduction on premiums paid 

1. 2) Investment Savings Plan 

IndiaFirst Life Radiance Smart Invest Plan, IndiaFirst Life Wealth Maximizer Plan and IndiaFirst Money Balance Plan offer the dual benefit of investment and insurance, and customized options that evolve to your needs and priorities. 

• Flexible premium paying terms and frequency 

• Flexibility to pay top-up premium to help manage increasing needs 

• Re-direct your premium to get the maximum investment benefit  

• Tax benefits may apply on premiums  

1. 3) Savings Plan 

IndiaFirst Life Fortune Plus Plan, IndiaFirst Life Long Guaranteed Income Plan and IndiaFirst Life Mahajeevan Plus Plan can help you achieve your financial goals and aspirations much faster, with assured returns. 

• Waiver of Premium Rider enhances base plan benefits 

• Pay for a limited period, enjoy long-term benefits 

• Discount on renewal premiums when paid early 

• Enhancement of maturity benefit factor when paying high premium 

• Tax benefits may apply on premiums  

1. 4) Retirement Plan 

IndiaFirst Life Guaranteed Pension Plan, IndiaFirst Guaranteed Retirement Plan and IndiaFirst Life Guaranteed Annuity Plan guarantee a regular stream of income for your retirement years. 

• Flexible premium-paying terms and frequency 

• Return of Purchase Price facility refunds the premiums paid 

• Limited payment, lifetime of assured income 

• Tax benefits may apply on premiums  

Factors that Affect Life Insurance Premiums 

Your life insurance premium depends upon many factors. 

1. 1) Age: The younger you are, the lower your term life insurance premium as you are presumably healthier and less likely to pose a health risk. 

1. 2) Gender: Women tend to pay lower term plan premium as their life expectancy is longer. 

1. 3) Occupation: Those in risky professions such as extreme sports or fire fighters may pay higher premiums due to the increased risk of injury or death associated with their job. 

1. 4) Health: Lifestyle habits such as smoking or alcohol could make you prone to health risks and hence, you will be charged more. 

1. 5) Medical History: Individuals with pre-existing medical conditions that are potentially serious will pay a higher premium.  

1. 6) Sum Assured Amount: The higher the cover you require, the higher your premium. 

1. 7) Policy Term and Premium Payment Term: The lower your policy term, the lower your premium will be as the premium payment term (PPT) cannot be higher than the policy term. 

Want to save on your life insurance premium?

The good news is that you can lower your life insurance premium and still get adequate coverage. Here’s how: 

1. 1) Start young as that is when you can get a high cover for a low premium. 

1. 2) Start with a term life insurance as the plan is simple and the premium affordable. 

1. 3) Compare policies across different insurance companies to get the best offer. 

1. 4) Take a lower coverage amount or a lower policy term. 

1. 5) Paying annual premiums could get you a better rate. 

1. 6) Consider a group policy as these are often less expensive than individual policies.  

1. 7) Maintain good health. 

Life insurance is non-negotiable and one of the best gifts you can give your family. However, most people shy away from it due to the perceived notion that premiums are expensive. IndiaFirst Life Insurance plans not only make life insurance premium affordable, but also flexible and convenient. IndiaFirst Life Insurance is also backed by Bank of Baroda and Union Bank of India, which makes us a solid, secure, company.