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What are the Four Types of Term Insurance in India?

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Insurance is one of the most important financial covers that everyone needs in their life. Insurance helps the person and their family stay financially protected in terms of incidents and issues by investing in something useful and protecting their money. Term Insurance is a type of insurance that provides cover for the insured person’s life and helps in making sure that the family is not left with any income in case of an unforeseen eventuality. There is numerous best-term insurance plan in India that helps in giving the best plans to help protect the insured as well as the family of the insured. Term insurance covers the family by assuring that there is a lump sum of money that will be awarded to the nominee in case of any eventuality and therefore protects the entire family from the lack of financial cover.

Why Invest in Term Insurance?

Term Insurance is one of the means to enable full independence for a family in case the breadwinner suffers any fatality. In such a situation, the family may face difficulty in case the deceased had taken any loans or if that particular person is the only employed person in the family.

The best insurance companies issue term insurance all over the world and in India, there are a bunch of insurance companies that provide term insurance. Term insurance is issued after the insured party undergoes physical medical exams such as basic blood work, heart health markers, overall organ health, etc.

Any underlying health conditions are also taken note of when issuing term health. Based on the overall health of the individual, the term loan cover is decided. It helps when the insured party is young and in good health when applying for a term loan.

Term insurance plan comes with plenty of features today including riders (riders refer to additional clauses covered under the policy). These clauses include disability, severe injuries, accidental damage, and many other such clauses. These kinds of term insurances are excellent options for people to invest in. They provide security in terms of incidents not just including death but other life-threatening eventualities that may put the family under financial stress.

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Some term insurances are excellent ways to secure tax returns as well as they are seen as an investment and therefore encourage people to invest in the safety and wealth of their family. Below are some of the best term insurance plans in India.

Level Term Plans

Level term plans are the basic kind of term insurance where the cover, premium, and maturity terms remain the same throughout the period of investment

Increasing Term Plans

In this plan, the cover amount increases as and when the insured person keeps aging but the premium amount remains unchanged when paying the term cover

Decreasing Term Plans

In this insurance, the cover assured amount decreases as the policyholder approaches maturity. This is usually the type of policy when the person has ongoing loans and debts to their name

Term Plan with riders

This insurance type has an option to add riders or an additional clause that covers accidental damage, disabilities, and premium wavers when the insured party is incapable of paying upon such incidents

Convertible Plans

These kinds of insurance can be converted to any other insurance during the period of investment after analyzing the premium paid so far.

What are the Four Types of Term Insurance in India?

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