Term Insurance
Term insurance is a type of life insurance policy that provides coverage for a certain period of time or a specified term of years. This type of life insurance provides a financial benefit to the nominee in case of the unfortunate demise of the insured during the policy term.
Types of term insurance
Level Term Plans
It is the most common type of term insurance plan. In this type of plan, the sum the sum assured is fixed throughout the policy tenure and benefits will be paid to the nominee on the death of the life insured. The lower your age while buying a level term plan the lower will be your premium.
Increasing Term Insurance
This type of plan offers the facility to increase your sum assured at specific points in the policy term. The rate of this increase is fixed. This type of plan is a great choice for keeping up with rising prices and ensuring that your family has enough funds to sustain after inflation. The tenure for this kind of term plan is usually more than that of other types of term insurance.
Decreasing term insurance
Decreasing term insurance is a term plan wherein a specific percentage of the sum assured amount keeps decreasing every year. The premiums paid towards the policy usually remain the same throughout the tenure. The decreasing term insurance plans in India are available between 1-30 years and depend on the terms and conditions of the insurers.
Return of Premium Term Insurance
These plans come with maturity benefit wherein the total premium paid will be returned to the life insured if she/he survives the policy tenure.
Convertible Term Plans
A convertible term insurance plan is a policy that can be converted into another type of insurance plan at a later stage. For ex, if you have bought a term insurance plan for 10 years, but after 5 years if you want to convert it into an endowment plan, a whole life insurance plan, etc., you can do so without any struggle.
Best Term Insurance in India
There are currently 24 life insurance companies that offer term insurance policies in India. Below mentioned are some best terms plan in India:
| Plan Name
|
Min. & Max. Entry Age(in years)
|
Min. Sum Assured(in Rs.)
|
| Max Life Smart Secure Plus Plan
|
18 – 65
|
20 Lakh
|
| Bharti AXA Life Flexi Term Plan
|
18 – 65
|
10 Lakh
|
| LIC Tech Term Plan
|
18 – 65
|
50 Lakh
|
| Pramerica Life Tru-Shield Plan
|
18 – 55
|
5 Lakh
|
| Exide Life Smart Term Edge
|
18 – 60
|
5 Lakh
|
| Kotak Term Plan
|
18 – 65
|
3 Lakh
|
| ICICI Pru iProtect Smart Term Plan
|
18 – 65
|
|
| Bajaj Allianz Life Smart Protect Goal Term Plan
|
18 – 65
|
50 Lakh
|
| SBI Life Smart Shield
|
18 – 60
|
25 Lakh
|
| HDFC Life Click 2 Protect Life
|
18 – 45
|
20 Lakh
|
