Do check the different types of term insurance policy plans available in market from different companies (Government & Private) who offers individually, jointly and on Group basis to cover the member life risk, Also find the policy available with increasing and decreasing the cover insured…
There is tremendous competition in the market when it comes to the Term Insurance policy, and there are many big companies in the field that provide a Term Insurance plan at minimal charges, which one to choose is quite difficult for some?
However, you can decide to choose a plan on the basis of Type of Term Insurance you want to buy, and there are many types of Term Insurance policy in the market to choose from, so let us check the some of the below
- Standard Term Life
- Group Term Insurance
- Term Plan on basis of years
- Increasing & Decreasing
- Term Return on Premium
- Online & Offline Term Insurance
- Single & Joint Life Term
Let us discuss each and every term insurance policy briefly to get a basic idea on different types of plans
Standard Term Life Insurance Plan
This is the most basic Term Insurance plan which provides a financial protection cover against various risks after the payment of the nominal or certain specified premium amount. People say that the insurance plan that charges a yearly premium is the best.
Group Term Insurance Plan
These are the plans designed to give financial protection to the societies, companies, big business houses, associations, big families etc. This gives cover to the entire group instead of a single member. The document of the Group Term Insurance Plan is customized to suit the needs of the group opting the policy. That is why the policy is mostly available offline only.
Term Insurance Plan on basis of number of years
Mostly, the Term Life Insurance plans range somewhere between 5 years to 30 years. However, the tenure can be extended for an additional period of time depending on the company’s policy. The most popular Term plans according to the number of years are:
- 5 year Term Insurance Plan
- 10 year Term Insurance Plan
- 20 year Term Insurance Plan
- 25 year Term Insurance Plan
- 35 year Term Insurance Plan
Note: In most of these policies, the premium of the policy remains the same each year or the whole tenure of the policy.
Increasing and Decreasing Term Insurance Plan
These are the plans, in which, the cover and the premium of the policy either increases or decreases with the increasing tenure of the policy. Mostly, these plans opted by the financial institutions and not by the public in general.
Term Return of Premium (TROP) Plans
This is the savings plus insurance plan in which a premium paid for the cover gets refund in case the policyholder survives. That is to say that the policyholder gets back all the money he/she has invested, at the end of the policy period.
Online and Offline Term Insurance Plans
As the name clarifies, those Term Insurance plans bought online are online Term Insurance Plans. Those that cannot purchased online sold through traditional methods like the agent, branch called offline term insurance plans.
Single Life & Joint Life Term Insurance Plans
In the Joint Life Term Insurance plan, two individuals get the Term insurance cover in joint form. If one dies, the other one gets the death benefits. This plan mostly opted by couples with a single child. However, in the Single Life Insurance Plan, only one person will cover, which is mostly the breadwinner in the family.
Conclusion: I hope, the concept of Term Insurance and what are its associated benefits and features are clear to you. If you want to invest in the security for long, Term insurance is best. If you still have any confusion or doubt about the Term insurance, please do write to us and we will be quick to respond.