For the past two years, there had been a 30 percent drop in term insurance prices because of the competitive market. However, those who have purchased their term policies earlier are still paying the higher price.
There is already a new option in switching to the new term insurance plan. And, there is no need to discontinue your insurance policy. However, this only appeals much to people who are still young. If you think you have a co-existing medical condition, think twice before switching.
Read more about Switching to a New Term Insurance Plan:
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A sharp 30 per cent fall in term insurance premium, which provides only risk cover and no return on maturity, has been witnessed in the last two years in the face of reduction in solvency margin by insurance regulator to sell term plans and also due to rising competition.
Term or pure insurance products do not have any investment component and do not have any maturity benefits. If the policy-holder outlives the tenure of policy he doesn’t get any return on premium.
But those who bought term policies at higher rate continue to pay higher premium. Premium in term plans is fixed for the entire tenure of policy and these policies do not have any renewal or maturity benefits.
Experts say that you can switch to new policies if age is on your side. But as you grow old, the mortality charges rise. When you think of switching to a new policy you must look at the new premium you would be required to pay.
Read more about New Term Insurance Plan at: MyDigitalFC.com
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The new strategy in saving more on term insurance is to switch to the new term insurance plan if you have already subscribed to a more expensive plan before. However, only the younger generation can avail most of its benefits.
Those who are already old and with existing bad medical conditions need not change to the new term plan, as this may only be a higher premium for them to pay. With the growing number of insurance companies, there are already several options to lower down the prices of term insurance plans. It just takes one to study these options so that savings could be reaped.
The earlier an investment has been made, the cheaper it gets. Buy term life insurance now.
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