Intro: ‘Regular premium payment’ may seem like
an insurance policy condition that protects the interests of an insurance
company, but in fact, it safeguards your interests too...
Life insurance
is like a multifaceted diamond. It could secure the future of your family, help
you build wealth, provide for your children’s milestone goals, your retirement
and more. And, the foundation for this is a mutually beneficial understanding between
two parties – you and the insurance company.
On your
part, once you have purchased the policy, your only duty is to pay your
premiums regularly and gain the maximum from it.
How does paying
your premium regularly help? Take a look...
Start
early, keeps your premium low:
As per the policy terms, life insurance
companies offer to insure your life for decades at a time. However, you have
the right to decide whether you want to be insured every time your premium is
due. Every time you pay your premium, your life is covered till the next
premium is due; though insurance companies maintain your life cover through the
grace period.
It still makes financial sense to pay your
premiums every time and avoid discontinuing your cover. This is because the
next time you purchase insurance, your age of entry will be higher and so will
the premium that you are locked into paying for the rest of the term. For
instance, if you are 25 years old and purchase a pure term plan, you would have
to pay a premium of Rs. 5,066 per annum*. However, if you purchase the same
policy even 5 years later, your premium will rise to Rs 5,726.
The second point will be described in the next blog.
No comments:
Post a Comment