Term insurance is the simplest and the most cost-effective form of life insurance available to us. Term life insurance protection ensures that your family’s life goals such as children education or marriage don’t get disrupted even in adversity. Therefore, term insurance should be an important part of your long-term financial goal-setting plan.
To get continued life insurance cover, one has to pay term insurance premium and the size of your premium varies according to various factors.
But before that, what is term insurance premium?
Term Insurance premium is nothing but the cost of providing insurance cover.
Importance of term insurance premium payment frequency
Your insurance company allows you to pay the term insurance premium in various frequencies depending on the product terms and conditions. Whether you buy term insurance online or offline, you can opt to pay on annual, half-yearly, quarterly or monthly basis as per the terms and conditions mentioned under the policy. However, the cost of the premium is directly proportional to the number of times you pay in a year.
In that case, paying monthly premium will cost you more than quarterly payments. Subsequently, quarterly payments are costlier than half-yearly payments while annual premium payments are the most cost-effective. With annual premium payments, you get the maximum value for your money.