Have you ever considered what would transpire to your family if something happened to you? Typically, such worries are unwarranted, particularly in Indian society. But wouldn’t you agree that it’s crucial to face the possibility that your loved ones may suffer if you leave them behind without thinking about their financial future? The easy solution is that such a strategy must be initiated immediately because the earlier, the better.
Each of us will eventually succumb to the uncertainties of life. Therefore, it is advisable to be ready for them so that you won’t find yourself in a vulnerable situation and unsure of what to do next when the time comes. Thus, the best term insurance plan in India can act as your family’s financial safety net in case of your untimely death. Continue reading to learn more about India’s best term insurance plan.
What is a Term Insurance Plan?
A type of life insurance known as term insurance offers protection for a predetermined time frame. The defined period during which the policyholder is provided with life insurance coverage for a predetermined insured sum in the event of their untimely death is known as the policy term of your term insurance plan. Your family will benefit from this financial support during these trying times.
Let us look at the available types of best-term insurance plans in India.
Types of Term Insurance Plans
Level-Term Insurance Plan
Level-Term Insurance Plan is also termed a permanent life insurance policy. It is a term insurance plan commonly provided in India as a life cover insurance policy. The significant benefit offered to the policyholder in a level term insurance policy is that the sum assured remains the same throughout the term policy until its expiration. Once the plan expires, the policyholder can get it renewed, though the premium rates go up.
In the event of the policyholder’s unfortunate death, the payout is given to the nominee. Thus, a level-term insurance plan offers a death benefit. So even if the beneficiary dies after five years or ten years since the term policy was purchased, the maturity value provided will remain the same.
The Yearly Renewable Term (YRT) Insurance Plan
A yearly renewable term insurance plan can also be called an increasing premium or annual renewal term assurance. As the name of the term policy suggests, it can be renewed annually. However, like other insurance policies that have a specified term plan, a yearly renewable term insurance plan does not have one.
In a yearly renewable term insurance plan, the policyholder purchases the insurance on a quoted amount that lasts one year. Although, the amount of premiums paid annually increases each year as the beneficiary grows older. Health risk factors are the primary cause of the rise in the amount to be paid while renewing the term policy.
 Increasing Term Insurance
The name gives away the definition of the term insurance plan in question. Increasing term insurance is a plan wherein the sum assured can be increased during some specific points in the course of the plan. The amount of the assured sum rises every year at a specified rate. The rate of increase in the premium might not be the same.
Such a plan benefits individuals wanting to secure their family’s future. Increasing term insurance would ensure financial security and sustenance of funds during inflation. However, the maturity value or coverage a beneficiary offers dramatically depends on the individual’s health.
Decreasing Term Insurance
In contrast to increasing term insurance, decreasing term insurance offers a death benefit that decreases in value each year. The idea behind India’s best-term insurance plan is that an individual’s need for a higher assumed sum might decrease as they age.
Although an individual’s liabilities might decrease with age, in some cases, people might need to pay off home loans and mortgages. In such situations, it could be a feasible option for the beneficiary.
Convertible Term Insurance Plan
By purchasing a convertible term insurance plan, policyholders can convert at any time during the term of the chosen term insurance plan to a different form of term insurance plan. For instance, if you initially purchased the best term insurance plan in India for 15 years but decide later, say after six years, that you would like to switch to a different form of term insurance plan, you can do so.
Bottom Line
The best term insurance plans in India offer you a range of choices and numerous advantages. Therefore, you can use a term insurance calculator to choose the best insurance plan in India. A term insurance calculator is helpful for figuring out premiums and how much life insurance you need for your family’s financial security.
