The financial market has grown double fold in the past few decades. Today, people not only want their tangibles to be secured, but life insurance is also a major rage among the Gen Y, who wish to safeguard everything possible. Term Insurance, is one such concept that has never seen a downfall since its origin in the niche of financial services and insurances. There are tons of variations in a term insurance, and in India, almost all leading life insurance companies have this product covered under their list of services to offer to their customers.
What is a term insurance?
It is a plan of insurance which can be opted by the customers for a certain period of time. During this term of the insurance, if the insured suffers an unfortunate death, the sum assured is to be paid. Also, the sum that is paid out is the one that was chosen at the time of signing up for the term plan. However, if the insured is alive by the end of the policy, the policy matures, no benefit is received.
Different Policies in term insurance
The different policies offered in a term insurance are:
- Return of Premium Plan: In this type of term insurance, even though the plan matures, the insured gets certain benefit of premium. The premium is returned to the insured/policy holder in case he/she is alive even after the policy term ends.
- Level Term Plans: This is the most basic and the simplest type of term insurance. It follows the basic rule of term insurance – where the insured amount is paid to the assured only in case the policyholder dies during the term of the policy.
- Convertible Term Plans: This is a unique term insurance, where the type of insurance can be converted into any other insurance policy like an endowment plan after a certain period of time. For instance, after 3 years of term insurance, you can convert this into a complete life insurance i.e. an endowment plan or whole life plan.
- Increasing Term Plan: As one can understand from the name, in this variation, the policyholder can opt for an increase in the sum assured by a fixed percentage. This happens annually while, at the same time, the premium will remain the same. However, due to this option of increasing the sum assured, the amount of premiums may vary from that of level term plans.
- Decreasing Term Plans: Contrary to the increasing term plan, in this, the sum assured decreases year after year. This decreasing need of policyholder is matched by the decreased sum.
Some Of The Policy Providers Of Term Insurance In India
IRDAI is the governing body that overlooks the operations of insurances in India. Any policy provider that is approved by IRDAI can be relied on, to start off with. However, below is the list of some of the policy providers of term insurance in India –
- Max Life
- Star Union Daichi
- Birla Sunlife
- TATA AIA Life insurance
- ICICI Prulife
- PNB Metlife
- Bajaj Allianz
- HDFC Bank
- Kotak Mahindra Life insurance
- SBI Life insurance
- Sahara Life insurance
- Aviva Life insurance
- IDBI Federal
- DHFL Pramerica
- India First Life
- Shriram life insurance
*The above are just a few insurance service providers for the basic term insurance plans. There may be other insurers who have various plans for term insurance as well.*
Best Policy Holders Of Term Insurance In India
While term insurance has been catching rage among youngsters and people of India today, there is a lot of demand for this insurance and several people wish to sign up for term insurance in India. However, while you opt for an Insurer in India, it is important that you do your research before selecting the company to help you with a term insurance. There are different types of term plans and as mentioned above, you should choose the one that suits your requirement the best. Ask experts at Coverfox.com and then take a wise decision.
The people who do this kind of research and then choose the term plan wisely, are the ones who are known to be the best policyholders of term insurance in India. It is important for you to read all guidelines pertaining to term insurance before you sign up for it. Understand them, and if you cannot convert the rules into your understanding, then, reach out to experts. Once you are aware of it all, then dip your feet into the water of term plans and term insurances. It may seem to be quite complicated at the beginning, but once you know all about it – this insurance plan is going to be one of the best protection source for you and your loved ones.