The insurance market is bound to show you through a plethora of policies. The primary objective of all these policies is to secure the future of the policyholder’s family after his untimely demise. The insured has to nominate someone for receiving the benefits in the event of his death.
Insurance providers are known to offer a plethora of policies that fit in with different budgets and coverage requirements. The period of life coverage can often be chosen by the policy applicant based on age and certain other factors. Usually, the insurance plans are also known to yield life coverage worth varying amounts apart from other benefits based on your requirement and budget. On the other hand, the Term insurance plans constitute a basic and yet important segment of coverage protection for your entire family. They will provide coverage for every individual but they don’t come with any maturity benefit.
Term life insurance plans are customized in various forms just to meet the various customer needs:
Pure Term Life Plan
Pure term plans are the most basic forms of insurance policies that you’d come across in the market. With these plans, you’d need to pay your premium for the entire term of the policy. The sum assured is provided to the family in the event of a policy holder’s death prior to the expiry of the policy term.
Return of Premium Life Plan
This type of policy is for individuals that are seeking returns on the money invested in their insurance policies. The entire value of premiums that the policyholder paid throughout his policy terms gets repaid to him if he stands alive at the end of the term. This is going to be a substantial amount that you may use for taking care of your other financial expenses.
Decreasing Term Life Plan
The premium value is quite low for this type of plan. With every passing year, the value of the sum assured keeps falling. You may buy this type of plan while keeping with the debts you’re trying to pull out of. The debts are bound to be paid out of your income gradually when you survive every passing year; that’s why you also witness a falling need for the sum assured. The proceeds of your policy can even be used to pay off your dues when you die within the policy period.
Increasing Term Life Plan
This is a coverage concept that goes against the decreasing or falling term. The sum assured is bound to rise with each passing year. Bigger future expenses can be dealt with these types of policies. You may use the policy proceeds for pursuing higher studies or setting a wedding plan for your daughter. The policy premium cost may or may not vary throughout the policy term, but in order to achieve an effective increasing term for inexpensive premiums, you may visit a few policy comparison websites.
Convertible Life Plan
With this term life plan, you may convert your basic term plan into a whole life insurance plan. It even enables you to invest your hard-earned money into some endowment policy after allotting sometime over any pure term life plan. This is certainly going to yield great returns on your investment. When it comes to meeting your individual needs, you’re bound to find this policy more valuable.
You must compare the features and benefits of all types of coverage prior to submitting your policy application form. However, experts advise you to check out the policy clauses and clarify all your doubts before you sign up.