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Top 3 Tips for Massive Savings on Life Insurance In 2020

Aug 11, 2020 | 2 days ago | Read Time: 3 minutes | By iKnowledge Team

Today’s article is special. We will educate you on various ways to save on life insurance premium. These are not tricks, they are simple guidelines, but if followed with dedication, they will provide you a decent amount of saving.

Now you may be thinking, this is really easy. I just have to go online and take an online premium quote. Well, yes, it is simple to get a premium quote but it’s not that simple to save on premium. Everyone needs a few pointers, a little guidance to get the right plan at the best price. We hope that this article will point you in the right direction.

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Tip 1: Premium increases due to age!

The longer you delay, the higher you pay – because premium is calculated based on factors like your age and lifestyle habits. So make sure you buy Life Insurance at the earliest, even if it is a basic term plan.

You may not realize it now, but once you get the policy document you will be bestowed with tranquility and peace of mind. Because you will know that your loved ones will be financially protected in your absence.

If peace of mind doesn’t convince you, read on to see how much you can save if you buy early in life…

Premium rates are for a healthy, male, non-smoker for 1 Crore life cover with Life Protect option with policy duration till age 80 years

Age Monthly Premium
25 ₹786
30 ₹891
35 ₹1,099
40 ₹1,535
45 ₹2,165
50 ₹3,568

Premium rates mentioned above are for illustrative purposes and excluding taxes.

Remember that once you buy the plan, the premium generally stays fixed for the entire length of the policy. So why wait? Be smart, get your premium quote and lock in the best rates!

Tip 2: Save more when you split the life cover amount over 2 policies!

Let us assume that you want life insurance cover of Rs. 1 crore. In most cases, the insurance company will provide you with a single plan that will cover you for a longer term. Try doing this instead: Buy 2 policies instead of 1!

Example for a 25 year old non-smoker male, in good health:

  1. Short Term policy to cover your working years i.e. Rs. 1 Crore life cover till age 60 years, Premium Rs. 479 per month, Total premium over the policy term would be 479 X 12 X 35 years = Rs. 2,01,180.
  2. Long Term policy which covers you for whole life i.e. Rs. 1 Crore life cover till age 100 years, Premium Rs. 953 per month, Total premium over the policy term would be 953 X 12 X 75 years = Rs. 8,57,700.

Overall, the total premium to be paid for both policies will be Rs. 2,01,180 + Rs. 8,57,700 = Rs. 10,58,880.

Now if the customer takes only 1 plan for of Rs. 2 Crore life cover till age 100 years, the premium would come up to Rs. 1,764 per month and total premium over the policy term would be 1,764 X 12 X 75 = Rs. 15,87,600.

Pleasant surprise? The total saving for you if you buy 2 policies instead of 1 would be an astounding Rs. 5,28,720. That’s a saving of over 30%!

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Premium rates mentioned above are excluding taxes.

Tip 3: Choose the ‘Limited Pay’ option

You can save a lot of money if you buy our Term Plan with the limited pay option. With this option you pay for a shorter duration (i.e. 5, 10 years) and get life cover for the entire length of the policy (up to age 100 years).

Check out the illustration below for a 25 year old male non-smoker, choosing Aegon Life iTerm Insurance Plan – Life Protect Option with total sum assured of ₹1 Crore and policy duration till age 80 years.

Payment Option Monthly Premium (A) Payment Duration (B) Total Premium
Your Savings
Regular Pay ₹786 55 Years ₹5,18,760 –NA–
Limited Pay ₹2,871 10 Years ₹3,44,520 ₹1,74,240 (34%)
₹5,797 5 Years ₹3,47,820 ₹1,70,940 (33%)
One Time –NA– ₹2,59,294 ₹2,59,466 (50%)

Premium rates mentioned above are excluding taxes.

Be smart. Save on premium. Secure your family’s future. Get your premium quote.

II/Aug 2020/5843.


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Life Insurance Plan with 3 Options to Choose from

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