Facebook Twitter Instagram
    Trending
    • The offering and service portfolio of Hans Finest
    • Why You Should Have a Midwife
    • Who Are Perfect Candidates for Donor Eggs?
    • The ultimate guide to secure business consultant hiring
    • The Benefits of Viagra: Enjoy a Longer & More Satisfying Sex Life
    • Who is Amanda Ribas?
    • What Are the Common Med Spas Treatments to Consider?
    • Things You Need To Know About Fraxel Laser Treatment
    • Home
    • Contact us
    Facebook Twitter Instagram
    Tellingdad.comTellingdad.com
    Subscribe
    Tuesday, January 31
    • Home
    • Beauty
    • Business
    • Celebrities
    • Entertainment
    • Fashion
    • Fitness
    • Health
    • Lifestyle
    • Travel
    Tellingdad.comTellingdad.com
    Home»News

    How many types of term plan insurance are available in India?

    Julia_RockzBy Julia_RockzFebruary 22, 2022 News No Comments3 Mins Read
    Share
    Facebook Twitter LinkedIn Pinterest Email

    In the last couple of decades, the life insurance industry has developed various types of term insurance plans to cater to the changing needs of its consumers. 

    Let’s take a quick look at what term plan insurance means before we explore the six types of term plans offered in India.

    A term insurance plan is a financial protection plan that ensures that your loved ones are able to sustain themselves financially when you are no longer around. Essentially, the insured individual chooses a plan term, and if during that term they pass away, then their nominee(s) receive the sum assured. The insured person pays a life insurance premium in order to keep the insurance active.

    Now that you know what a term plan is, let’s understand the basics behind the six types of term plans:

    1. Level term plans

    Here, the term cover is fixed when the insured individual buys the policy. For example, if John buys a life cover of INR 1,00,00,000, then it will remain that throughout the term period.

    2. Increasing term plans

    The policyholder has the option to increase the term cover on an annual basis as long as it is within the policy’s tenure. The premium remains the same as when it was first locked-in. However, the premium for such plans is relatively higher to begin with to make up for the potential increase in the assured amount.

    3. Decreasing term plans

    Opposite of an increasing term plan, here, the sum assured keeps decreasing annually. The premiums in such term plans are relatively lower than level term plans since the assured amount keeps decreasing. It is often chosen when the policyholder has also taken a loan for which they are paying EMIs. Under such a term policy, the assured amount keeps decreasing according to the EMIs paid on loan.

    4. Return of premium plans

    Also known as TROP, these life insurance term plans allow the policyholder to get back the premium they had paid if they survive the policy tenure. The idea behind this is that a significant amount of money goes into premiums, and if the money is not being used as an assured amount for the use of the family, then it can be withdrawn on the maturity of the policy for some use.

    5. Convertible term plans

    When the policyholder opts for a convertible term plan, they get to convert their plan into another term plan. For example, if Jenny bought a 30-year term insurance plan but wants to convert that into a whole life insurance plan after 10 years, then she can.

    6. Term plans with riders

    This is a more comprehensive type of life insurance term plan. Here, the policyholder can opt for additional covers such as critical illness cover, accidental death cover, etc. which covers the policyholder in case they happen to suffer from a serious illness such as cancer or lose their life in an accident. This type of cover comes with an additional premium.

    It is advisable to inform your nominee about your objective behind choosing the particular type of term plan, as you would want them to make the most of the sum assured if they ever need to.

    Julia_Rockz

    Keep Reading

    Who is Amanda Ribas?

    Consider These Points While Buying Travel Insurance For Your Family

    The Best Boating Accessories for Your Boat

    What Affects Your Credit Score?

    How do you choose the car for your wedding?

    In Search of a Therapist? Here Are Some Tips

    Add A Comment

    Leave A Reply Cancel Reply

    LATEST POSTS

    The offering and service portfolio of Hans Finest

    January 31, 2023

    Why You Should Have a Midwife

    January 31, 2023

    Who Are Perfect Candidates for Donor Eggs?

    January 31, 2023

    The ultimate guide to secure business consultant hiring

    January 31, 2023

    The Benefits of Viagra: Enjoy a Longer & More Satisfying Sex Life

    January 30, 2023
    Categories
    • All
    • Animal
    • Auto
    • Beauty
    • Birthday
    • Business
    • Car
    • CBD
    • Celebrities
    • Cloth
    • eCommerce
    • Education
    • Entertainment
    • Fashion
    • Fitness
    • Food
    • Gadgets
    • Health
    • Home
    • Hospitality
    • Industry
    • Kitchen
    • Law
    • Lifestyle
    • Loan
    • Machine
    • Marketing
    • News
    • Pet
    • Realestate
    • Seo
    • Services
    • Sports
    • Tech
    • Technology
    • Tips and guide
    • Trading
    • Travel
    About
    About

    Tellingdad.com provide by The top global media business trends of 2022, technology trends of 2022, social media trends 2022, top viral trends of 2022

    We're Connect with us:
    Email: [email protected]

    Facebook Twitter Instagram Pinterest
    Top Categories
    • Fitness
    • Health
    • Lifestyle
    • News
    • Sports
    • Technology
    • Travel
    Latest News

    Who is Amanda Ribas?

    January 30, 2023

    Consider These Points While Buying Travel Insurance For Your Family

    January 30, 2023

    The Best Boating Accessories for Your Boat

    January 27, 2023
    Facebook Twitter Instagram Pinterest
    • Home
    • Privacy Policy
    • Contact us
    © Copyright 2022 All Rights Reserved, Powered By GPosting.com

    Type above and press Enter to search. Press Esc to cancel.

    Cleantalk Pixel