Term Life Insurance Blogs

The first thing to remember is that having depression or anxiety doesn’t have to hold you back from getting life insurance, as most people have a mental illness at some point during their lives. And from the past ten years, the percentage of young adults experiencing mental illness has significantly increased. If you have a complex mental health history, it can be challenging if you have never shopped for life insurance. Under this blog, you can get a clear idea about employee life insurance and make the process more comfortable than ever.

Can you get employee life insurance if you have depression or anxiety?

If you die, life insurance is there to provide a financial cushion for your family or loved ones. Even if you are dealing with mental health challenges, there is a life insurance policy out there for nearly everyone. As insurers want to know how likely you are to die when you apply, your health is one of the main things that insurers consider. You might be wondering if life insurance covers people with depression and other mental illnesses if you have a mental health diagnosis. How severe it is and how it might affect your life expectancy will decide the impact of depression or anxiety on your life insurance.

For instance, it might not have much of an impact if you have a history of mild anxiety and depression that is well-controlled. Your insurance company will ask you health questions, including questions about your mental health when you apply:

• Are you being treated by a medical health professional or therapist?
• Which medications or other treatments are you taking?
• How severe is your condition?
• When were you diagnosed?

You might also need to take a medical exam and provide details on current and past prescriptions depending on the type of policy, such as employee term life insurance. 

Ideas for getting covered with depression or anxiety:

• Learn to be honest- If your insurer finds out later that you lied, it can decline to cover you or deny your family a life insurance payout later. Still, it might feel awkward to discuss personal details about your anxiety and depression. Your life insurance company will be better equipped to help you find the right fit if you are honest about your condition.
• Look around- If you have a history of health issues, then some life insurance carriers might be more lenient than others.
• Avoid giving up. There are life insurance options available where you are not required to take a medical exam if you don’t qualify for term life insurance or permanent life insurance.

How will mental illness affect employee term life insurance?

It may not impact your rates much if your depression or anxiety is mild and you’re under professional care. It could raise your rates or prevent you from qualifying at all if it is severe and you’ve been hospitalized or are at risk of suicide. Your loved ones receive a cash payment called a death benefit to use for whatever they need if your policy is still active when you die.

A Term Insurance Plan should be an ideal addition to your financial portfolio. Unmatched financial security is provided by the plan, which is not provided by any other financial tool. You can select a high sum assured to cover the financial loss your family would suffer in case of your premature and untimely death At low premium costs.

Some of the tips to reduce premium rates on term life insurance policies:

• Buy a plan when you are Young and Healthy:

Your Term Insurance plan premium depends upon your age when you buy the plan. The mortality risk increases as you grow older and determines the premium on your plans. When you delay buying a term insurance plan, the underlying premium rate increases; hence it is recommended that you should buy a plan when you are young.

• Maintain Good Health and Lifestyle:

Additionally, Health and Lifestyle habits also determine the premiums under term life insurance policy. The premium will be high if you have any medical ailments or physical complications. The would-be increased too if you consume Tobacco the tip. This premium increase is with the underwriting assessment that medical ailments and lifestyle vices increase your mortality risk. Hence, the insurance company charges a higher premium to compensate for the higher inherent risk.

• Choose a Longer Tenure:

The tenure under insurance features includes long coverage durations, which go as high as 40-50 years. If death occurs during the coverage tenure, the plan pays the benefit. The highest possible coverage duration should be selected as per experts’ advice when buying a term plan. You get for a more extended period, which increases the probability of claim payments for your nominees even after your retirement age and the premium amount outflow is lower. You don’t have to pay a higher premium afterwards for the same Sum Assured, these are the two benefits of choosing a long tenure.

• Pay premiums Regularly and in an Annual mode:

Premium life insurance plans allow Limited and Regular premiums. When you pay premiums for a limited duration, they are little premiums. On the other hand, regular tips mean paying premiums throughout the tenure of the plan. Your premium rates would be lower compared to limited payments if you choose a recurring premium payment option.

• Choose the correct Sum assured:

Your premium will be high if you buy a plan which has an unnecessarily high sum assured. Hence, you must be careful when selecting the Sum guarantee and ensure that the chosen coverage amount is neither very high nor too low.

• Cut down on Frills and go for Basic Vanilla Cover:

Modern term insurance plans feature a lot of value-added features, which enhances the scope of the project. It would be best if you did not go overboard in selecting these value-added benefits. Inbuilt riders are useful additions, but other paid features are to be weighed in terms of the additional premium costs associated with it.

When choosing a premium life insurance, look out for the maximum possible discount to avail of and reduce your premiums by using these benefits.

Financial worries are the most painful ones that each of us undergoes in our daily life cycle. Death is not invited and if there occurs an unpredicted death, it may affect our family badly if our financial state is low.

Life insurance cover is a good goal as it will provide security for the family. A part of our income can be safely handed to the life insurance cover every month or year as per our convenience and can get super befitted. Few insurance policies are very flexible, and they also get differ in the rates and the types of covers that are chosen like term insurance benefits, term or permanent life insurance, or even whole life insurance and premium life insurance.

Life insurance also provides income tax benefits that include free of tax for any death, thus beneficiaries can be free from paying the tax and even no tax for the cash whose value grows time by time. However, 10% of tax is to be paid as income tax if we earn more than the limit that is as per the quote each insurance policy undergoes. Yes, it is more important to know about each insurance policy in the insurance market before buying it. There are chances to buy life insurance policies even with pension funds. For pension fund insurance, there will be tax relief based on the premium. Hence, everyone can get premium life insurance based on the age and premium they pay.

Talking about the age limit, the minimum age to enter term insurance is around 18 years and the maximum age is 69 years (pensioner included). Also, the term will get varied with the basic pay too. Term insurance will suit the people who have loan issues and if the budget is too low. Term insurance tax benefits may vary based on the TDS (tax deduction source). To avail of insurance tax benefits, one must have the annual premium at least 10 times. All the tax benefits are calculated by the income tax rules. Section 80C and 10D are the tax acts that are used in current tax benefits calculations.

Plan to go for 10 times plus for an annual premium and get benefited. If the sum is less than 10 times the annual premium, then 10% of the amount will be deducted. However, the beneficiary gets free on tax payments when the plan holder is no more. Plan holders aged below 45 years can have 10 times the annual premium, and the plan holder of age above 45 years gets seven times the annual premium. Insurance policies are a bit difficult, but if the plan holder chose the right one, then it will be more beneficial for the plan holder and the beneficiary.

Planning for life insurance based on income is the best thing one must have in mind before entering into the insurance policies. Let our family settle well even in the absence of the family head (income source).