On the prodding of global re-insurers, life insurers are set to hike premiums on term plans in the December - January window. The pandemic-driven higher death rate has been touted as the culprit. The rising mortality numbers in the past 2 years due to the pandemic, especially after the second wave, has resulted in a surge in claims, which has hit re insurers badly. With the surge expected to be anywhere around 15%-45%, purchasing a term plan, which has otherwise remained at pretty low rates in India, is likely to pinch you post the hike in premiums. So what should you do??
No one wishes to pay a higher price for something they can otherwise get a lower rate, right? After all, everyone works hard to earn their bucks. And especially when it comes to something like insurance which is not an option but a necessity, it¡¯s always advisable to purchase it without any delay. The sooner the better.??
If the pandemic, which served as the biggest wake-up call in the past 2 years, hasn't been enough to make you realise the importance of life insurance, then perhaps what will? Anyway, better late than never. With the term insurance premiums set to spike super soon, it¡¯s prudent to purchase it as soon as possible, to minimise the adverse impact on your pocket.
This is even more important this time because, unlike the earlier rounds of hikes ranging around 10%-15% since the COVID-19 outbreak in India, this time, the hike is expected to be substantial.? Remember that the term insurance premium stays the same throughout the tenure once the policy is taken, so it's better to commit now than later at a higher premium.
Also Read:?Worth Explains - Why A Term Plan Is The Only Life Insurance You Need
Even if you already have a term insurance but its cover is inadequate as per your current financial responsibilities, do not further delay and purchase another term plan, otherwise, you not only remain under-insured but also have to pay a much higher premium in case you push this decision to later, especially post this expected premium hike.?
Youngsters in their 20s should not assume that their age can put them in a safe corridor. The sooner you take the insurance, the lower your premium would be. So it makes sense to lock in at lower rates at the earliest.
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