Finance

Different Types Of Term Plans and What Makes Them Unique

Term Plans

Term Life Insurance Plans are the purest form of life insurance that promises to cover the policyholder’s family during their untimely death due to accidents or other reasons. The plan is one of the most affordable and practical techniques to secure your family’s financial future during a time of crisis. 

Thus, a term plan comes in several different categories, each of which has unique features to offer. Let us go through this for more!

Return of Premium Plan 

No one likes to spend paying premiums and getting nothing in return. That is why the return of premium plans was born to return the tips once the policyholder survives until the policy’s maturity. So, this type of plan comes with a maturity benefit in many cases. Different life insurance companies provide a diverse set of maturity plans that you can choose according to the budget and preference. This term plan can be beneficial for those wanting a maturity benefit later on in life. 

Pure Term Plan 

This is the best and the most common form of life insurance plan. Most people tend to opt for this one the most as it is simple, effective and easy to understand. In a pure term plan, the policyholder’s family or the nominee will receive the assured sum once the policyholder passes away due to any unforeseen circumstance. But if the policyholder survives here during the term plan, then they do not receive anything. That is the idea of this term plan that promises to cover your family’s financial future if you aren’t living anymore.

Increasing and Decreasing Term Plan 

In an increasing term plan, you can opt for increasing your assured sum annually while the plan period is ongoing. Thus, the premiums of this plan will also differ from the various other plans you opt for. 

In a decreasing term plan your sum assured may decrease every year so that it matches the decreasing insurance demands of the insurance holders. These plans are best for people who have taken massive loans for various reasons on EMI.


Term Plans with Riders 

This term plan is where you can buy riders like death by accidents cover, critical illness cover or cover for disability by paying small premiums as per the insurance company’s demand. Those who take the rider and purchase the premium waiver benefit will not have to pay the future premiums for the same. This is the unique type of plan that you will find amidst all others. You can connect with your insurer to know more about it right away. 

Convertible Term Plan

This is a type of insurance plan where you can buy the program with an option to transcend it into a different plan at a later period. People who are not sure about the plan they are buying can opt for this without much difficulty. 

The Bottom Line of  Term Plans

You can purchase from this wide range of term plans as per your budget and preference.   

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