Life Insurance Policy

If you are thinking about taking the best term insurance plan, then you ought to invest some time in research. Term insurance plans are designed to offer financial security to the insured for a specific time period. When you choose the best term insurance plan for yourself, you can avail a wide range of benefits. In order to make a well-informed decision, it is vital that you know the types of term insurance plans available for you. In this article, we have mentioned the types of term insurance policy to help you make a better decision.

Level Term Insurance

Level term insurance is one of the most common types of plan, which is provided by basically all life insurance providers. In this type of insurance, the premium you pay and the sum assured remain fixed throughout the tenure. It is recommended to take this plan at a younger age as you will get cheaper premiums.

Increasing Term Insurance

In increasing term insurance, the death benefits continue to increase with every year until the term of the policy. While the benefits increase, the policy premium remains the same. Mostly the plans have a predetermined limit to which the benefit increases. Even after the benefit reaches its maximum limit, the policy will still be effective. The cost of increasing term insurance is typically higher as compared to other types of level term plans.

Decreasing Term Insurance

In decreasing term insurance, the amount of payment decreases every year until the plan pays out or coverage period is over. The premium throughout the plan remains the same. This type of policy is generally taken out against particular debt, which reduced over the course of time. By the time policy period comes to an end, the sum assured often comes to nil. Premium in decreasing term insurance is lower as opposed to other level term insurances.

Term Insurance with Return of Premium

Return of premium term insurance allows you to get back all the premiums that you paid during the policy tenure. However, you will only get the premium if you survived until the end of the policy. For instance, you have taken a return of premium plan for 30 lakhs for 20 years with 3000 as premium, and you pass away within this time period. In such a case, your beneficiary will only receive the 30 Lakh. However, if you survived this period, you will receive the premium amount as well.

Once you have assessed all the term insurance plans available and decide which one suits you the best, filter out the providers in the market. Make sure you thoroughly go through the plan each of the provider offers. Consider the features, costs, benefits, and all the other factors to decide what is the best term insurance plan. Pay special attention to the terms and conditions section to ensure that you don't miss out any detail that might affect you in the future. A little time you spend in the early stages will significantly help you obtain the best outcomes from your best term insurance plan