You might be thinking when it is term insurance, then why I am talking about various options in term insurance plans? As per our basic knowledge of term insurance, its very simple. In this article I will share how many types of term insurance plans are there in current market.
Many people don’t like the concept of not repaying back the premium amount after maturity period in case of term insurance plan. That’s why companies are working hard to launch various attractive feature packed term plans just make sure people started liking term insurance plans. Right now there are various types of terms plans in India that I am going to share in this article.
Types of Term Insurance Plans in India 2016
Just to remind you one thing that the concept of term plan has come to provide you only death benefit with a huge lump sum amount at the cost of a nominal premium every year. Let’s see how this concept has been changed in many term insurance policies in India.
Offline term insurance: This is the typical way insurance plans are used to sell till few years back. But right now things has changed and these plans are lost their market.
Online term plan: This is the age of online term insurance plans. You don’t need to contact any agent, just fill up the forma and buy an insurance from any of the top term insurance providers of India.
Increasing cover: Here comes something different with typical concept of term plans. Under this kind of plan one can get increasing life cover after every promising period. E.g. say after completing every 5 year your sum assured value will increase by 5% without paying extra premium amount.
Critical illness rider: These days there are many life threatening diseases for which you might have to go for an additional insurance cover. Instead of that many term plans are coming with such critical illness rider benefits under which with the payment a little extra premium your term plan can cover for selected critical illness. now you should check out what are those diseases in the policy document.
Term Plan with return of Premium: Now this is the plan which is attracting more customers as people are finding it meaning full as the premium paid through out the policy term will be repaid back in case things are fine.
Income Protection Plan: There are term plans launching in India where your family will get regular monthly income or pension kind of facility in case of unfortunate death. Generally in such type of policies, a portion of sum assured value will be paid back and then remaining amount will be paid in installments as monthly income or monthly pension.
So, there are various types of term plan products are available in market. I hope this list will increase in coming days and people will find more innovative term plans to buy. But if you ask me, its always the basic term plan without any extra feature which works great for me for this insurance need.
Do share your thoughts or experience or any kind of doubts related to term insurance plans India by writing a comment below. I would like to answer your queries as per my best knowledge.