What are the different types of Term Insurance?

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What is the purest and the oldest form of life insurance? Well, the answer to this is obviously a Term Insurance Policy. Term Insurance offers you with coverage that does not have a cash value. It is specifically designed for the protection and security of your family, in times of exigencies.

The best time to invest in a term insurance plan is at an early stage of life. When you purchase a term insurance plan at a young age, the amount of premium will be half of what it’ll be in a decade. Moreover, as you start aging, the mortality will also increase. Hence, take a look at these online term plans and invest in it at the right age:


List of the types of term insurance:

1. Level Term Insurance

Under level term insurance, the sum assured remains the same throughout the tenure of the policy. Due to this, a majority of people prefer to buy a term insurance plan for asset management as well as long-term planning. Moreover, on the death of the policyholder, the sum assured is paid to the nominee listed down by the policyholder.

2. Increasing Term Insurance

As the name suggests, this concept is based on rising inflation. Due to this, there is a fear that the insurance coverage might not suffice you. In order to take care of such issues, increasing Term Insurance has been introduced. Under this type of insurance, life coverage increases rapidly at a fixed rate of 5% per year.

3. Decreasing Term Insurance

Under decreasing term insurance, life coverage keeps decreasing to a point where it reaches the threshold limit and so does the total amount of loan decreases. If you’re looking for protection against mortgages or loans, then invest in decreasing term insurance. Moreover, investing in this type of insurance ensures cheaper premiums in comparison to a normal term insurance plan.

4. Premium Return Term Insurance

Irrespective of the fact that premium return term insurance is new to the market, there are a majority of takers for it. While it brushes off the uncertainties of a term insurance plan, it is expensive in nature. However, the total premium which is paid by the policyholder is returned to the life insured only if he survives the tenure of the policy.

5. Joint Life Term Insurance

If you’re looking forward to protecting the needs of your spouse and yourself, then joint life term insurance is the perfect choice for you. Here, both the partners pay a single premium for a particular period. Hence, if one partner dies, the surviving partner can claim the life cover of the policy.

Now that you have an idea about all the types of term insurance plans, see to it that you discuss all of them with an expert and take actions accordingly. The right type of term insurance policy will offer you low cost and high coverage.

With the right plan, you’ll not only be providing for yourself but also for the dependents under you. A term insurance plan is a great insurance option in order to meet their needs. Hence, it is important to keep yourself and your family adequately insured for the times of unforeseen events. After all, no one would want to see their family suffer financially in their absence.


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