Types of Term Insurance Plans – Which One Should you Buy

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Term insurance plans are one of the most traditional and basic kinds of life insurance policies available. They are protection plans which protect your family from uncertainty or unforeseen misfortunes by providing you financial security and assurance. It helps you manage your expenses for days when you are not around. Hence, planning term insurance online can be quite useful. To understand the different types of insurance plans, continue reading this post!

  • Convertible Term Plans

Such plans come with options where the holder of the policy will convert such plans into any other plan for the future. For example, if you have purchased an insurance plan for 20 years, but you want to change it into a complete insurance plan some years later, you will be able to do so easily and without hassles.

  • Level Plans

If you are looking for something simple and basic, a level-term insurance plan is a good place to consider. The sum assured here is fixed throughout the tenure of the policy. All the benefits shall be handed over to the nominee in cases of death of the person whose policy has been insured.

  • TROP Plans

This one is slightly different from the term insurance policy above. It comes with maturity benefits where the total premium that’s paid will be given back to the life that’s insured if he or she is able to survive the tenure.

  • Increasing Plans

In this plan, the policyholder gets the option to augment their sum assured once a year during the tenure of the policy while maintaining the amount of premium on similar values. Because of this reason, the plans are naturally on the higher side when you compare them to level term plans.

  • Decreasing Term Plans

Here, the sum assured will continue to decrease annually. Such plans come quite handy in situations where the policyholder has taken a big chunk of the loan or is paying an EMI. In such types of plans, the sum assured also keeps decreasing at a frequency with the EMI payments. It also decreases the total of loans.

  • Term Plans That Come With Riders

Such plans also have rider options like critical illness cover, accidental death cover which you can easily purchase along with normal plans by simply paying a small amount. If any person opts for riders & even avails of a waiver benefit, she or he will not have to pay future premiums in case there are eventualities for the rider that they have chosen.

Of course, nobody wants to deal with a medical emergency in life, but one should always be prepared for the curveball life throws at us with a health insurance or term insurance cover. Hence, we always advise our clients to invest in a comprehensive term insurance plan. Insurance providers such as One Assure are also continuously working towards improving their website and making it more user-friendly, thereby making the purchase journey a very smooth one. It is also safe to buy such plans online as they come with many benefits, are quick and easy to use and are affordable as well.

 

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