A vital tool to ensure financial security and peace of mind for you and your loved ones is a life insurance policy. However, it is a common misconception that the best life insurance plans are expensive.
But, with the proper knowledge and planning, you can purchase an affordable life insurance plan that meets your needs without exceeding your budget. This article will provide valuable tips and insights on buying a life insurance plan online on a budget.
So let’s look into ways to purchase a life insurance plan on your budget-
Gradually increase your sum assured
Most insurance policies allow you to increase your sum assured over time by paying higher premiums. This means that you can start with a lower sum assured and lower premiums when you are younger and then increase them as you get older and your financial needs change.
As you progress through different stages of your life, you may have additional financial obligations, such as buying a home, starting a family, or providing for your children’s education. To meet these obligations, you may need a higher sum assured to ensure that your loved ones are financially protected if something happens to you. TATA AIA Life Insurance offers term plans that have Life Stage Benefits that allow you to increase your coverage at critical points in your life.
Opt for a monthly mode of payment.
For people with limited budgets, who wish to spread out their major expenses, it is best to go for the monthly premium payment mode. While remembering monthly payments can be a task, automating the payments can help. Also, it is better than missed payments due to unaffordable premiums.
Do note that monthly payments mean that you pay slightly higher than annual or any other lump sum premium payment modes. However, if the burden of lump sum payments deters you from buying a life insurance plan, monthly payment is a good option.
Choose your riders carefully.
Adding riders to your insurance policy can provide additional coverage and benefits beyond the basic policy. However, adding too many riders can increase the cost of your insurance premiums. To avoid paying for riders you may not need, you must include only the critical and relevant riders to your specific needs.
For example, a Critical Illness Insurance rider is perfect if your family history or prevailing health indicates an increased chance of getting diagnosed with a specific critical illness.
Be realistic about your financial obligations.
If you are buying life insurance to cover specific obligations, such as a home loan or till your children start earning, you should consider budget life insurance that covers you only for that period. Whole-life coverage might not be suitable or required for everyone. Assessing and choosing the correct tenure based on your unique financial obligations can help you save on premiums.
Spread out premiums for a more extended period.
If you choose to opt for a policy with a short duration, you may find it stressful to pay higher premiums in a shorter period. However, selecting a longer premium payment tenure can help spread out the cost of the premiums and may still provide you with good or even better returns on your investment.
Buying a life insurance plan on a budget is possible with intelligent planning and decisions. You can control your Sum Assured with age, opt for monthly payments, include only relevant riders, and be realistic about your financial obligations to save on premiums.
Moreover, spread-out premiums over a longer policy tenure do not, in any way, impact your returns or the financial security your family enjoys.
Life insurance is a vital purchase, and with a clever approach, you can find the best life insurance coverage within your budget.