Rm Comunicacion
  • Home
  • Advertising
  • Business
  • Communication
  • Industry
  • Management
  • Services
  • Tech
  • Guest Post inquiry
Close
Rm Comunicacion
Close
  • Home
  • Advertising
  • Business
  • Communication
  • Industry
  • Management
  • Services
  • Tech
  • Guest Post inquiry
Why are Premium Amount for Term Insurance so Low?
Share:
Business July 26, 2021 Zoe Isaac

Why are Premium Amount for Term Insurance so Low?

The ultimate goal of a term insurance is to make sure that the financial future of your family members is taken care of in the time of your untimely passing. It has also developed a reputation for being one of the most cost effective insurance schemes out there, due to the relatively lower amounts that the policyholder pays as premiums. This article will essentially list down the reasons as to why a term insurance premium is so low.

  • No investment component

The money that a policyholder pays towards traditional insurance policies is divided into three main sections; cost of insurance, administration charges that are incurred and investment. This means that a part of the insured’s money is invested in the financial markets. However, that is not the case for term insurance policies. Such schemes only tend to bifurcate your money in the cost of insurance and the administrative charges.

  • Your health plays a factor

Several term insurance policies require the policyholder undergo a comprehensive medical examination. The same is done so that the insurer anticipates the potential illnesses that might unexpectedly grab hold of you and determine how much at a risk are you. This will help them develop an individual risk profile for you and your family, which will determine the final premium that you will pay towards your policy.

If you receive the proverbial “clean bill of health” from the insurer or the entity that had you examined, you walk away with paying a relatively lower premium amount. Additionally, factors like past medical history (which you must disclose at the time of you applying) or reported abnormalities in your test results can inflate the amount that you may have to pay towards your term insurance policy. In some cases, the application for a term insurance policy might even get rejected as well. You could do a basic online version of the same on several portals online which have a term insurance premium calculator.

  • Where you work is a factor too

The insurance executive also takes into account your place of work and the possible risks to your health if you keep working there. An individual with a desk job, for example, will have to pay much less premium on his/her term policy as compared to an individual who has to work with hazardous chemicals and/or geographic locations that naturally emit potentially dangerous chemicals/substances. People who work in the latter sectors often have to face the rejection of their insurance policy application on the part of the insurer.

  • No maturity benefits

Holders of traditional insurance policies tend to receive a benefit in the form of capital returns at the end of the maturity period. The same is made possible on the part of the insurer due to the investment of a particular percentage of the premium in the financial markets. Since there is no investment component in a term insurance policy, the holder does not get any form of maturity benefits. However, if the policyholder has taken the correct add-on, or rider, as they are called, they can claim all the premiums that they have paid towards the policy on maturity.

  • Policy duration

Term insurance policy premiums are also affected by the years for which the insured wants to stay covered through it. It means that a policyholder, whose insurance plan covers him/her or the family members for 30 years, will have to pay a smaller premium as compared to a policyholder whose insurance plan covers for 50 years or more. You can find out more about the term insurance premium that you will have to pay as a policyholder on several online portals that have listed term insurance policies and have a term insurance calculator.

Previous post Finding the best trading method according to your personality
Finding the best trading method according to your personality
Next post Vi under 500 plans offering interesting benefits
Vi under 500 plans offering interesting benefits

Related Posts

Business Structure and Audit Warning Flags
Share:
Business

Business Structure and Audit Warning Flags

May 24, 2021 Zoe Isaac
In the following paragraphs, I must discuss audit “warning flags” to understand additionally for your business structure if it is...
Finding the best trading method according to your personality
Share:
Business

Finding the best trading method according to your personality

July 20, 2021 Zoe Isaac
The personalities of the retail traders vary greatly. Based on their personality, they should choose their trading style. The chances of securing...

Top Posts

  • Transfer funds easily with a mobile banking app
    April 28, 2022
    Transfer funds easily with a mobile banking app
    Tech
  • 5 Tips to Use a Personal Loan for a Stellar Home Makeover in 2022
    January 25, 2022
    5 Tips to Use a Personal Loan for a Stellar Home Makeover in 2022
    Business
  • Tasks A Reputable Digital Agency Can Perform To Boost Your Website Visibility
    November 13, 2021
    Tasks A Reputable Digital Agency Can Perform To Boost Your Website Visibility
    Tech
  • The Top Benefits of the KNOX App You Need to Know
    October 29, 2021
    The Top Benefits of the KNOX App You Need to Know
    Tech
  • Questions One Might Be Afraid To Ask About Add Map
    October 11, 2021
    Questions One Might Be Afraid To Ask About Add Map
    Business

Recent Posts

  • Transfer funds easily with a mobile banking app April 28, 2022
  • 5 Tips to Use a Personal Loan for a Stellar Home Makeover in 2022 January 25, 2022
  • Tasks A Reputable Digital Agency Can Perform To Boost Your Website Visibility November 13, 2021
  • The Top Benefits of the KNOX App You Need to Know October 29, 2021
  • Questions One Might Be Afraid To Ask About Add Map October 11, 2021
  • What Is the Purpose of a Surge Protector and Do You Really Need One? September 27, 2021
  • Tips to Improve WiFi Signals August 19, 2021
  • Gather One Gather All As The Party Is About To Commence! August 6, 2021

Archives

  • April 2022
  • January 2022
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • July 2020
  • April 2020
  • March 2020
  • February 2020
  • October 2019
  • July 2019

Tags

sign shop Bangkok
Useful articles and reviews
Tips to Improve WiFi Signals
Tips to Improve WiFi Signals
August 19, 2021
Hiring Locksmith professional Services? Must Inquire
Hiring Locksmith professional Services? Must Inquire
May 12, 2021
Ideas to Finding the right Fire Extinguisher Service in your town
Ideas to Finding the right Fire Extinguisher Service in your town
April 17, 2021
Internet Service Providers – Choosing The Best
Internet Service Providers – Choosing The Best
April 15, 2021
Instructions to Look for Cheap Web Hosting Services
April 11, 2021
How Back-office Providers Might Help Enhance Business Proficiency?
How Back-office Providers Might Help Enhance Business Proficiency?
March 20, 2021
Be aware of Common Services Provided by Cpa or CPA
Be aware of Common Services Provided by Cpa or CPA
February 24, 2021
3 Things You Should Know About Free Website Hosting Providers
3 Things You Should Know About Free Website Hosting Providers
February 10, 2021
The most effective method to Choose Efficient and Affordable SEO Services 
The most effective method to Choose Efficient and Affordable SEO Services 
January 18, 2021
4 Ways boost your startup business in Singapore with CRM software
4 Ways boost your startup business in Singapore with CRM software
March 14, 2020
July 2022
M T W T F S S
 123
45678910
11121314151617
18192021222324
25262728293031
« Apr    

© 2021 –  Rm Comunicacion. All Rights Reserved.

  • Know Your Communication Style
    June 10, 2021
    Know Your Communication Style
    Communication
  • CPA Advertising – A Better Option For Low Quality Internet Marketing
    April 20, 2021
    CPA Advertising – A Better Option For Low Quality Internet Marketing
    Advertising
  • Business Signs – 4 Factors to Carefully Consider
    July 3, 2020
    Business Signs – 4 Factors to Carefully Consider
    Business
  • Finding the best trading method according to your personality
    July 20, 2021
    Finding the best trading method according to your personality
    Business