A large number of people have claimed during the COVID-19 epidemic. Therefore, insurance companies can soon increase the prices of term insurance plans.
Term Insurance Plan: If you want to buy a term insurance plan, then you should do so as soon as possible. In fact, experts say that soon the premium of term insurance plans may increase. Term insurance plan provides life cover for the duration chosen by the policyholder. Sum Assured is paid to the nominee in case of death at any time during the policy term. At the same time, there is no maturity benefit in such a life insurance policy.
This could be the reason for the increase in premium
Experts say that if global reinsurance companies increase their rates, then soon term insurance plans may also become expensive. Reinsurance company is called those who work to provide insurance to insurance companies. Experts say that such information is kept confidential. It is informed to the public only after it is finalized and rolled out.
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A large number of people have claimed during the COVID-19 epidemic. Therefore, insurance companies can soon increase the prices of term insurance plans. Due to the epidemic, awareness about insurance has also increased among people and now more and more people want to buy insurance policies. Experts say that due to various reasons, including COVID-19, the number of claims increased and due to this the insurance companies had to pay more money than expected. To compensate for this and the threat of the new variant Omicron, some reinsurance companies may increase the premium.
However, experts also say that it is not necessary that insurance companies in India should increase the premium immediately after the increase in the premium of re-insurance companies. Whether to increase the premium or not depends entirely on the strategy of the insurance company. Along with this, how much will be changed in the premium, it also depends on the company itself.
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Would it be ok to plan now?
Deepak Yohannan, CEO, MyInsuranceClub says, “Term insurance is mostly taken for a longer period of 25 years to 40 years as the policy term. In such a situation, if you are planning to buy this plan, then it is wise to take advantage of it at a low premium. Once you buy a term insurance policy, the premium does not change till the term of the policy. Significant savings can be made over a period of 25 to 40 years. I would recommend buying a term insurance cover up to 20 times the current annual income at the earliest.”
The life insurance premium is locked from the day one buys the insurance policy. Hence, existing customers or customers who want to buy insurance in the next few days need not worry about the increase in premium. If the premium increases, it will not affect them. Term plan coverage is very important for such people, on whom family or some people are financially dependent. Such people should buy a term insurance plan as soon as possible. Once you have adequate term insurance cover, you can do financial planning for your long term goals without any worries.
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