Life Goals Loading…

10 Blue cross

Notifications10

  • Fulfill your Life Goals with Bajaj Allianz Life Goal Assure

    KNOW MORE
  • Here's a Comprehensive Tool To Plan Your Child's Future

    START NOW
  • There is lot to remember in Life, Set renewal premium payments to Auto Pay

    WATCH VIDEO
  • Get Life Cover worth Rs.1 Crore at Rs.21 per day2 – Bajaj Allianz Life Smart Protect Goal

    CALCULATE NOW
  • Life Insurance Term Plan with Return Of Premium

    WATCH NOW
  • Get your Life Goals Done with Bajaj Allianz Life Smart Assist – BINA MILEY MIL-KAR

    KNOW MORE
  • Paying your Renewal Premium is Quick and Easy!

    PAY NOW
  • Know the right amount of Insurance you need in just a few steps!

    START NOW
  • Avail Term Insurance Tax Benefits under Section 80D

    READ MORE
  • Know how to invest money during the covid-19 pandemic!

    READ MORE

Thanks for sharing your details, A Sales representative from
Bajaj Allianz Life will contact you shortly.

Dear Customer, we request you to connect with us in our next business working hours, (Monday to Saturday 24*6) Thank you, Have a great day ahead

Have Us Call You
X

Terms & Conditions

I hereby authorize Bajaj Allianz Life Insurance Co. Ltd. to call me on the contact number made available by me on the website with a specific request to call back. I further declare that, irrespective of my contact number being registered on National Customer Preference Register (NCPR) or on National Do Not Call Registry (NDNC), any call made, SMS or WhatsApp sent in response to my request shall not be construed as an Unsolicited Commercial Communication even though the content of the call may be for the purposes of explaining various insurance products and services or solicitation and procurement of insurance business

 

Please refer to BALIC Privacy Policy

Term Insurance Premium – Know All About It

Term insurance premium

Term Insurance Premium – Know All About It


calender-blue

July 07, 2021

By : Bajaj Allianz Life

Rising costs of living have made the process of living itself a rather expensive process. These daily costs interspersed with high healthcare costs aren’t necessarily surprising but are a tough pill to swallow, nonetheless. By armouring themselves with a layer of financial protection, individuals can award themselves with financial coverage should they need it. One form of financial protection that may be considered is term insurance. This form of insurance is easy to buy as it is available on the internet. There exist several tools aimed at making the selection process for the appropriate form of term insurance easier.

 

What is term insurance?

 

Term insurance is one of the affordable forms of life insurance presently available in the market. By availing of this insurance, individuals select a policy term for which they expect to be provided with coverage and pay a premium on the same as opted by them. This premium may be paid on a monthly, quarterly, semi-annual, or annual basis, and based on what it amounts to, the insurance company guarantees payment of a sum assured on death of the life Assured. In the event that the insured individual dies within the policy term, the insurance company pays a death benefit to the insured individual’s nominee. The nominee may be paid a lump sum payment and/ or receive funds of a fixed amount or increasing amount on a monthly basis for a specified period of time as per the insured individual’s instructions which were made clear at the time of purchase of the policy.

 

What is a term insurance premium?

 

Term insurance premiums refer to the regular payments made by insured individuals to the insurer for the insurance coverage under term insurance policies. The amount of premium owed may vary from one individual to another and is calculated basis certain factors. Interested individuals can make use of a term insurance calculator which provides them with an estimate of what the term insurance premium ought to be. The amount of this premium owed is determined by taking into account a number of factors pertaining to the individual. They include but aren’t limited to the age, gender, medical history, current income, annual income, anticipated year of retirement, financial goals, coverage preference, the lifestyle of the insured individual, and the likelihood of a claim being made on their account.

Actuaries are employed by insurance companies to better assess and calculate appropriate term insurance premiums for various individuals considering several factors listed above. These actuaries are tasked with analysing risks likely in case of an unlikely event occurring or a claim being made. The higher the risk, the more pronounced the insurance premium.

 

Why are term insurance premiums more affordable than other forms of life insurance plans?

Term insurance premiums are known for being the most affordable form of life insurance plans as compared to other insurance plans. There exist a number of reasons which are responsible for their being budget-friendly and less expensive than other forms of life insurance. Some of these have been mentioned below.

 

1. Fund management charges aren’t applicable here

 

Since term insurance plans don’t operate like unit-linked plans, they do not have a fund that is required to be invested in and focused on. As a result, there are no expenses related to managing a portfolio or money. Insurance companies are therefore capable of vending term insurance plans at comparatively lower premiums.

 

2. Purchases made online can be more affordable

 

Many times, life insurance policies (including term insurance) purchased online are eligible for a higher discount in comparison to offline purchases. This is because the paperwork involved reduces and the distribution costs are lower in this situation.

 

3. Benefits of paying term insurance premiums on time

 

Insured individuals must strive to make term insurance payments on time such that they and their nominees can continue to take advantage of the benefits the coverage provides. Failure to pay premiums on time can result in the policy coming to an end (or lapsing).

Individuals can set up alerts on their calendars such that they don’t forget to make any premium payments and are on track with their laid-out term insurance plan.

 

How to pay term insurance premiums online and offline

 

Term insurance premiums can be paid in a number of ways. This could vary amongst the insurance providers, some of which are mentioned below –

  • The insurance company’s official website has a premium payment portal that allows for net banking as well as other payment modes.
  • Mobile wallets.
  • The same goes for banks that may be given electronic clearing system (ECS) mandates which allow for premium deductions to be made from the insured individual’s bank account
  • Renewal through third party applications like PayTM etc.
  • Renewal through cheque payment which is the most conventional mode to pay renewal offline. You can either drop the cheque at the insurers branch or head office.
  • In the event that the insured individual chooses to pay the term insurance offline, they can either visit a franchise or provide an authorized collection agent with the premium. This may be submitted in the form of a cash or cheque, depending on the amount of premium.

     

    Conclusion

     

    Protect your loved ones financially by investing in a term insurance plan that is most appropriate to you and your family’s needs. Times are uncertain and the Coronavirus pandemic has added to it. Term insurance benefits could greatly help out your nominee during an unforeseen event.

    BJAZ-WEB-IC-01188/21

Bajaj Allianz Life Videos

Video Icon

Dancing Uncle Is Back | Special Bonus | Bajaj Allianz Life

Contact Us

Bajaj Allianz Life Insurance Company Ltd.

Bajaj Allianz House, Airport Road, Yerawada, Pune - 411 006, Maharashtra

Tel No: 020-66026773

Fax No: 020-66026789

Branch Visit Timings:

Monday to Friday - 9:00 AM to 3:30 PM

Saturday - 9:00 AM to 1:00 PM

Customer Care Helpline:

1800-209-7272

Monday to Sunday: 9:00 AM to 7:00 PM (IST)

NRI Services Helpline

24/7 (All week days)

Sales Enquiry Helpline:

1800-209-4040

Monday to Saturday: 9:00 AM to 7:00 PM (IST)

For NRI: +91 20 67688888 (Call charges apply)

Monday to Saturday: 9:00 AM to 7:00 PM (IST)

Find Us Online

33% Discount is available for regular premium and limited premium payment frequency under all variants of Bajaj Allianz Life Smart Protect Goal - A Non Linked, Non-Participating, Pure Life Term Insurance Plan

The above information is for general understanding and is meant to educate the general public at large. The reader will have to verify the facts, law and content with the prevailing tax statutes and seek appropriate professional advice before acting on the basis of the above information.