Life insurance to get expensive: If you are planning to take life insurance cover for the first time or thinking of increasing the size of the existing cover, then you should not delay as the premium of life insurance policy can be expensive now.
Life insurance to get expensive: Life Insurance has many important benefits, but its biggest advantage is that it also reduces the risks. A person who has life insurance not only covers himself but also his family financially. Therefore, to avoid any untoward incident, you must make life without it.
The more you delay in getting life insurance coverage, the more expensive it becomes because there is a higher premium for life insurance based on age. However, if you have already taken a life insurance policy, its premium usually remains the same throughout the policy term. The premiChanges in lifestyle and habits due to aging
A large number of people are now working from home and this invites diseases like blood pressure and diabetes. Deteriorating health conditions or habits like smoking, alcohol consumption etc. can lead to an increase in the premium of your life insurance policy.
increasing cover at a later age
Getting life insurance cover at a young age can be less expensive than buying a policy at a later stage in your life. Sometimes people get life insurance policy based on their current financial needs and later they find life insurance inadequate. Hence if you find that your existing life cover is insufficient, getting additional life cover can be costly if you delay the decision further.
um rates are generally variable for policy buyers of all age groups. If you are planning to take life insurance cover for the first time or looking to enhance the size of the existing cover, So you should not delay as the premium for life insurance policy can be expensive now. Let us know about some of the major factors which are going to affect the life insurance premium.
Increase in claims over the yearsÂ
Life insurance premium is generally decided on the basis of life expectancies of the insured. However, during the Covid pandemic, the insurance industry saw a sharp increase in claims. Due to higher than normal insurance claims, reinsurance companies are now left with no option but to increase the premium charged to insurers.
announcement in the budget
In the Union Budget 2023, there is a proposal to tax income from traditional insurance policies other than unit-linked products (ULIPs). Policies with a premium of more than Rs 5 lakh in a year are likely to impact the growth and margins of life insurance companies. Demand is also expected to be affected by this. The new rule will come into effect from 1 April. If you have planned to invest heavily in traditional life insurance policies (except ULIPs), it is important for you to know the budget changes and get the policy by March 31, 2023.
What you should doÂ
- If you are an existing life insurance policyholder and do not want to increase the cover size, you need not worry and continue paying the premiums without any delay.
- If you are an existing policyholder but are planning to increase the size of the cover, you should act fast as the premiums are likely to increase significantly in the near future.
- If you have not yet bought life insurance cover, you should take a suitable policy immediately and lock in the premium at the current applicable level.
