At some point in time, all of us deliberate over financial issues and how to go about saving, investing, and ensuring a secure future for our families. With a plethora of available options and plenty to choose from, selecting a term insurance policy may be a confusing task for many. However, these are some of the best term insurance plans in India, your choice should depend on your requirements and your budget –
- The first and most basic type of term insurance plan is the level term plan. This policy has a fixed amount of premium to be paid, and a fixed sum assured that shall be paid to the beneficiary on the death of the insurer. The sum assured is fixed throughout w4the duration of the insurance, and there are no changes that will be or can be made on both ends- the company or the policyholder. This is a highly popular safe and one of India's best term life insurance plans
- The second type of term insurance plan is the TROP Return of Premium Plan- this type of policy give back all of the premiums paid over the tenure of the insurance along with maturity benefit if the policyholder survives the duration of the plan. This is not a typical mortality plan.
- The third type of term insurance is the Increasing term plan. This plan allows the insurer the flexibility of increasing the sum assured gradually over time with the same premium value. However, due to its flexible nature and greater returns, the premium can be quite hefty from the very beginning.
- The fourth type of plan is the exact opposite of the third type, and it is known as the Decreasing Term plan- in this type of policy, the sum assured will decrease with time. This is designed to meet the decreasing financial requirements of the policyholder. These work best for people who have a lot of mortgage, loans and EMI payments.
- The fifth type of term insurance policy is the Convertible term plan- this is also a flexible policy in which, after completion of a resting period of 5 years, the policyholder has the option to switch to a different type of policy like permanent life insurance plans or endowment plans etc. For example, a person may have bought a term life insurance for a period of 20 years, but they want to make other financial decisions and forego the term insurance plan, so they have the option to convert it to another form of policy as is offered by the company.
- The sixth type of term insurance is called Term plan with a rider – such plans allow the policyholder to add additional options in their regular term insurance plan. Like you can get accidental death cover, illness cover etc., for an added cost. This term insurance plan is apt for those who do not wish to rely on fate want to secure their family irrespective of their absence in any unfortunate circumstances.
These are some of the best term insurance plans in India. With a careful study and understanding of different insurance policy's benefits and suitability, you can choose some of the best options available to you and your family.
Some basic things to remember before getting a term insurance policy-
- Always consider your financial needs, goals, and how much you are willing to put into insurance vs how much you can afford.
- Take your health and your family's health into account and find a plan that suits you best.
- Do not make uninformed decisions regarding insurance policies, and always read the fine print.
Of course, no one wants to tempt fate and leave everything to chance and good luck- human lives and uncertain, and it helps to have a safety blanket to tide you over rough times. A term life insurance helps with that. It takes care of your family if something were to happen to you. It is the best gift to give your family in your absence.
