With the growing popularity of term insurance plan, the insurance companies offer an inclusive range of comprehensive term insurance plans in order to fulfill the requirements of the insurance seekers. As per an individual’s suitability and requirement, they can compare the quotes of term insurance plans online and select the most lucrative plan. However, before zeroing in on a plan let’s take a look at the different types of term insurance plans available in the market.
Pure term insurance plans or standard term insurance plans are the most popular and simplest form of term insurance plans which provides insurance coverage to the policyholder’s family if the policyholder dies within the tenure of the policy due to an unfortunate event.
This term insurance plan is specifically designed for business, companies, associations and societies. Group term insurance plans provide insurance coverage for all the members of the group. The group insurance plans benefit is same as the individual term insurance plan. However, as compared to the individual term insurance policy, the overall coverage of group term plans is normally high.
Term return of premium is a type of term insurance plan which offers survival benefit. Under this term insurance plan, if the policyholder survives the whole tenure of policy, then the entire premium paid by the policyholder, excluding the tax amount is paid back to the individual. Term return of premium is a lucrative option of investment for individuals who wants to avail the combined benefit of insurance and savings.
Under the Increasing Term Plan, the coverage offered by the plan increases at a particular duration during the tenure of the policy. The plan estimates the risk according to the rising cost during the policy tenure and compensate accordingly. The policy coverage keeps on increasing till the time the plan attains 1.5 times more than the actual cover.
Under this option of plan, the death benefit as well as the premium amount of the plan decreases at a specific rate during the entire term of the policy. These types of term insurance plans are normally used by the banks and financial institutions that cover the risks of mortgage or home loan provided to the customers.
The traditional method of selling term insurance plan through an agents or branch is known as offline term plans. However, for the convenience of the insurance buyers, numerous insurance companies provides online term insurance plan. The online term insurance plan can be purchased online in a simple and hassle-free way by visiting the official website of the company. By purchasing a plan through online process the insurance buyers can save money and time.
So, these are the basic types of term insurance plans available in the Indian market. The insurance buyers can compare various term plans online and zero in on the most beneficial plan as per their convenience.
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