If you are looking for a term insurance plan with increasing sum assured, it is very important to first understand how these policies work. A pure term plan will cover only death benefits and give a fixed sum assured in case of death. But such policies will increase your term life cover on various stages of life.
Why You Need an Increasing Cover Term Plan
You select a sum assured amount, which the insurance provider will pay your family in case if you die within the policy tenure. While there is no denying the fact that a term insurance is indeed an excellent way to secure the financial future of your family when you are no more. But the sum assured amount decided now may not be enough after 10 years, due to inflation.
As the inflation increases, the value of your money decreases. So, if you now believe that an assured sum of Rs. 50 lacs would be ideal for your family now, it might not be enough 10-20 years down the line. This makes an increasing term life insurance an ideal choice.
With this type of term insurance, the sum assured increases at a fixed rate on an annual basis to help you tackle the inflation. You can also increase your term plan cover on different stages of life like after marriage, getting a baby, after buying a house etc.
List of best term insurance plan with increasing sum assured
If you are looking for one such policy, we have listed some of the best ones for you.
10. Kotak Preferred Term Plan
The Preferred Term Plan provides the flexibility to increase or decrease cover. The death benefit can be paid in lump sum or in the form of monthly or annual income. This policy too offers great discounts for women and non-tobacco users.
9. ICICI Pru iProtect Smart
This policy too allows you to select the increasing monthly income option where the income increases by 10% each year. There is also a life stage protection feature for increasing the premium when you achieve important milestones in life.
8. Birla Sun Life Protect@Ease Plan
The Protect@Ease plan from BSLI is available for up to a tenure of 40 years and the premium rates are highly affordable too. You can opt for the increase term assurance option with this plan and the death benefit can be paid as an annual income too.
7. Metlife Mera Term Plan
The Mera Term Plan too comes with the option to opt for a lump sum and increasing monthly income option. Moreover, there is also a life stage protection for major events in life, like marriage, first child, second, child, etc. The policy can also be purchased by joint holders.
6. Bajaj Allianz iSecure More
With the iSecure More policy from Bajaj Allianz, the assured sum increases by 5% every year until it is two times the actual sum. Moreover, the policy is available for individual as well as joint policyholders. The death benefit can also be taken in installments with this policy.
5. IDBI Federal Life Termsurance Increasing Cover Plan
With this Increasing Cover Plan of IDBI Federal Life Termsurance, the assured sum will increase by 10% each year. The company also offers excellent discounts to women and if you assure a large sum.
4. Max Life Online Term Plan Plus
With the Online Term Plan Plus from Max Life, you can select from three cover options. If you go for the increasing income option, the beneficiary of the policy will receive 100% lump sum assured sum along with monthly income which will increase by 10% each year up to 10 years.
3. HDFC Click 2 Protect Plus
With this policy, you can opt for income plus option with which apart from the assured sum the beneficiary will also receive 0.5% of the assured sum as monthly income for up to 10 years. The policy also has a life stage protection feature with which the assured sum increases with every major milestone in life.
2. SBI Life eShield
With this policy, the assured sum increases by 5% each year. It comes with additional accidental death benefit and is available for a minimum tenure of 10 years and a maximum tenure of 30 years.
1. Aegon Life Increasing term plan
With this policy, the assured sum increases by 5% every year until it reaches double the actual amount in 20 years. The sum will not increase once it is doubled. It comes with other benefits like accidental death benefit, critical illness, and permanent disability benefit.
These are 10 of the best increasing term life insurance in India. Make sure that you clearly understand the benefits of these policies and how the increasing assured sum feature works to get maximum financial security for your family. There is no doubt about the importance of life insurance, but you have to pick the right one.
Conclusion – Should You Buy A Term Plan With Increasing Cover
As I have mentioned in all my articles that there is no alternative to a pure term plan. As soon as the policyholder dies, you will get the lump sum amount in your hand and then you can plan your future financial life accordingly.
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But this is also a good option in case you find that your initial life cover is not enough or your goals have been modified and your cost of living has increased. Besides that, you can also buy a new term plan with maximum coverage, by closing the previous one.
The only difference between these 2 is, the premium will be comparatively high for such term plans with increasing sum assured value compared toa pure term plan. If you consider a same life cover sum assured amount.
If you think this is difficult, then I think you can consider this list to start your research on choosing the best term insurance policy with increasing life cover benefits. Write a comment below and share your feedback or experience if any.