Term insurance is a pure protection insurance plan which provides cover for a specified period of time. Term insurance plans are the least expensive of all the life insurance products when compared against the sum assured offered by them. It is advisable to evaluate your requirements before
selecting the right term insurance plan for yourself.
A term insurance plan is the best gift you can give to your loved ones. A term insurance plan will provide financial protection in case of your unfortunate demise. There are many insurance companies operating their business in India that offer different types of term plans.
Here are the 4 basic types of term insurance plans:
- Level Term Plans – This is a level sum assured term insurance plan in which the coverage amount remains fixed throughout the policy term.
- Decreasing Term Plan – As per the decreasing term plan, the sum assured amount decreases by a fixed percentage each year. It is a renewable term life insurance plan in which the premiums are constant throughout the policy term.
- Increasing Term Plan – As per the increasing term plan, the sum assured amount will increase by a pre-set percentage on an annual basis. Such plans as useful because the cost of living expenses and inflation also increases every year.
- Monthly Income Plan – As per the monthly income plan, the sum assured benefit is paid out in regular monthly installments to the nominees in case of death of the policyholder.
In short, a term insurance plan is the best gift you can give to yourself and your family. Purchasing a term plan will ease your mind as you need not worry about your family’s financial needs in the long run.