Types Of Term Insurance

You can choose from a variety of term insurance plans, including:

1. Level Term Insurance

In India, this is the most common type of term insurance bought. The life cover and premiums that you choose depending on your needs and liabilities when you buy this plan remain constant for the life of the policy. All life insurance companies must provide this form of protection.

2. Decreasing Term Insurance

This is a type of term insurance in which the cover decreases at a predetermined rate over the term of the policy while the premium remains the same. The basic premise behind decreasing term insurance is that as a person gets older, his or her need for high levels of insurance decreases as his or her responsibilities (such as a house or car loan) decrease or expire.

3. Increasing Term Insurance

As the name implies, this plan works in the opposite direction of the "decreasing term insurance"
discussed above. The quantity of cover rises as a person gets older, yet the price stays the same.

4. Return of Premium Term Insurance

Despite the fact that this type of term insurance is new to the market, it has a lot of supporters. If you obtain this type of term policy, the insurance company will refund the premiums you paid during the duration of the policy if you live to the end of the term.

5. Convertible Term Plans

This is a plan offered by some insurance companies that allows you to purchase a term insurance policy with the option to convert it to another plan of your choice at a future date. For example, if you have a 25-year term plan, you can change it to a whole life insurance plan, an endowment plan, or any other plan of your choice after 5 years.

6. Term Plans with Riders

This is a one-of-a-kind plan that allows you to add riders like critical illness insurance, accidental death insurance, or disability insurance for a small additional price. If you buy a rider and choose the premium waiver benefit, you will not be liable for any future premiums in the event of any of the situations for which you bought the rider.