Invest Policy
No Result
View All Result
Friday, March 5, 2021
  • Login
  • Latest News
  • Banking
  • Economy
  • Market
  • Investment Plans
    • Mutual Funds
    • Money
    • Property
    • Scheme
  • Finance
  • Insurance
    • General Insurance
    • Life Insurance
    • LIC
  • World
Subscribe
Invest Policy
  • Latest News
  • Banking
  • Economy
  • Market
  • Investment Plans
    • Mutual Funds
    • Money
    • Property
    • Scheme
  • Finance
  • Insurance
    • General Insurance
    • Life Insurance
    • LIC
  • World
No Result
View All Result
Invest Policy
No Result
View All Result
Home Insurance

The premium for term insurance plans may increase soon

The premium for term insurance plans may increase soon

by InvestPolicy
February 28, 2021
in Insurance
0
term insurance hike
152
SHARES
1.9k
VIEWS
Share on FacebookShare on Twitter

There are reports about term insurance that there may be an increase in the premium of term insurance within the coming 90 days. This information is based on a study conducted in the last three months by a reinsurance company. Reinsurance is a company that covers the risks of other insurance companies. Hence, the Reinsurance Company along with insurance companies fix the cost of term insurance and life insurance plans. The study found a need to increase the premium for term insurance plans.

Term insurance is based on the concept that the mortality rate of customers taking term insurance will be 25% of the deaths in the average Indian population. Online term insurance prices are even cheaper than offline. Online prices are determined by considering the death rate of customers taking term insurance as 20% of the deaths in the average Indian population. While fixing prices online, mortality is considered low, so online term insurance plans are cheaper as compared to offline term insurance.

Along with this, there are many other benefits of taking an online plan. In today’s time, term insurance has become very important for the people, so through this article we are going to tell you why term insurance plans can be expensive.

Max Life Term Insurance Plans Benefits, Reviews and Premium Details

How the premium for term insurance is determined?

The premium for term insurance is calculated on the basis of several factors, which are –

  • Gender – Women have lower average mortality rates than men. According to a recent study, women live about 5 years longer than men. This means that the risk of term insurance is lower for women as compared to men, hence the premium for term insurance is lower for women.
  • Ages – As you get older, the term insurance premium also increases. The probability of death increases with age. Term insurance premiums remain largely unchanged until the age of 40 years. It grows every year after the age of 40.
  • Period – Term insurance plans are usually for a particular time period. It can range from 10 years to 30 years. As the period increases, so does the price. This is because as the period progresses, you will become more old and you will also be more likely to have health problems.
  • Mode – Payment modes can be monthly, quarterly, half-yearly or yearly. The premium also varies depending on it. Monthly installments are more expensive than annual payments. The payment you make is usually kept in the investment account, so that interest can be earned on it. The longer the premium paid by you will remain in the account, the more interest the company will get. In addition, on payment of several times a year, the insurance company has to bear more administrative expenses to process the payment.
  • Rating Class – Each insurance company divides its customers into a pool based on risk. Each pool represents a square. Higher class rates are lower. It is based on medical history, family history, health status, your habits etc. These classes are often named Elite, Preferred, Standard, Standard Plus and Substandard. Rating classes may vary in different companies.

LIC Tech Term Plan

Offline and online term plan pricing

Price determination – The insurance sector has also come down due to the increasing impact of e-commerce and the increasing trend of common people towards online purchases. Any applicant can deal directly with the insurer online. In this method there are no brokers or agents between the insurance company and the client. Due to this, online plans are cheaper than offline plans. All the benefits of the scheme are directly transferred to the customer. Online term insurance, on average, is 40% cheaper than its offline counterpart.

insured amount – The sum insured also changes in the online term plan. Through the medium of online customers are assured of a higher sum insured at a lower premium. Its coverage ranges from Rs 5 lakh to Rs 5 crore. Although similar facility plans are also available offline, customers prefer to take an online term plan due to lower premium and higher sum assured.

The Reinsurance Company has informed all insurance companies that the insurance premium may be revised in the near future. So if you are not insured and want to get it done in future, then this is the right time for you. Otherwise you will have to get insurance by paying higher premium. You can choose a good plan for yourself based on the features and premiums of different insurance companies as per your convenience.

  • Trending
  • Comments
  • Latest
MP E Uparjan

MP E Uparjan 2021 | Farmer online registration, mpeuparjan.nic.in portal

February 27, 2021
sukanya-samriddhi-yojana-vs-lic-kanyadan-policy

LIC Kanyadan Policy Vs Sukanya Samriddhi Yojana

March 2, 2021
What is the role of two employees of Wipro in wrong transfer of Rs 6554 crore to Citibank

What is the role of two employees of Wipro in wrong transfer of Rs 6554 crore to Citibank

February 26, 2021
Amazon's logo was being trolled by saying Hitler's face, the company made changes once again after seeing opposition

Amazon’s logo was being trolled as Hitler’s face, the company made changes once again after seeing protest

March 1, 2021
RailTel IPO: Premium falls in gray market, should you still invest?

Nureca’s IPO will open for subscription on February 15, should it subscribe or not? Know the opinion of experts

February 28, 2021
Andhra Pradesh closed today to protest against privatization of Visakhapatnam steel plant, government support too

Andhra Pradesh closed today to protest against privatization of Visakhapatnam steel plant, government support too

March 5, 2021
Tamil Nadu: Remember Sasikala's old vow before believing in her retirement!

Tamil Nadu: Remember Sasikala’s old vow before believing in her retirement!

March 5, 2021
China set a target of GDP growth rate of over 6 percent for 2021, emphasis also on increasing trade from abroad

China set a target of GDP growth rate of over 6 percent for 2021, emphasis also on increasing trade from abroad

March 5, 2021
Market Live: Mixed signals from global market, action can be seen in Tata Consumer

Market Live: Weakness in Asia and SGX NIFTY, WIPRO to buy CAPCO for $ 145 million

March 5, 2021
Anurag Kashyap and Taapsee Pannu may face difficulties, fearing manipulation of Rs 650 crore

Anurag Kashyap and Taapsee Pannu may face difficulties, fearing manipulation of Rs 650 crore

March 4, 2021

Recent News

Andhra Pradesh closed today to protest against privatization of Visakhapatnam steel plant, government support too

Andhra Pradesh closed today to protest against privatization of Visakhapatnam steel plant, government support too

March 5, 2021
Tamil Nadu: Remember Sasikala's old vow before believing in her retirement!

Tamil Nadu: Remember Sasikala’s old vow before believing in her retirement!

March 5, 2021

Categories

  • Banking
  • Economy
  • Featured
  • Finance
  • General Insurance
  • Health Insurance
  • Insurance
  • Investment Plans
  • Latest News
  • LIC
  • Life Insurance
  • Market
  • Money
  • Mutual Funds
  • Property
  • Scheme
  • World

Site Navigation

  • Home
  • Advertisement
  • Contact Us
  • Privacy & Policy
  • Other Links
Invest Policy

InvestPolicy.com is one of the leading companies when it comes to loans and card marketplace. Our main motto is to help our customers in making personal finance decisions easy and convenient as per their comfort.

© 2021 Invest Policy. All Right Reserved.

No Result
View All Result
  • Latest News
  • Banking
  • Economy
  • Market
  • Investment Plans
    • Mutual Funds
    • Money
    • Property
    • Scheme
  • Finance
  • Insurance
    • General Insurance
    • Life Insurance
    • LIC
  • World
  • About Us
  • Contact Us

© 2021 Invest Policy. All Right Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In