Knowing More About Term Life Insurance Covers

We generally talk about Life Insurance easily. We can debate on it without a hitch throwing suggestions with ease across the table; but when it comes to Term Insurance, we can feel the hinge. It is the factor involved in Term Insurance which causes the pause.

Though we all know that death is an inevitable fact, but when it comes to take it in worldly wise manner, we try to avoid even the thought of it. This being one of the main factors why we often try to walk away from the word Term Insurance. However, if looked otherwise, term insurance would be one of the most feasible insurance policies. Today’s fast paced life calls for incidents like accidents leading either to death or partial or permanent disability. The result is either the whole & sole bread earner of the family is not there to support the family or he is not in a condition to support his family financially or morally.

Taking the severity of the matter, it is suggested that one thinks about taking a Term Insurance Policy. To help out chalk out a plan, let me guide you through a simple outline of kinds of term insurance sold by various insurance companies.

Kinds of Term Insurance:
• Level Term Insurance – This kind of policy is designed to pay the sum insurance in event of death of the insured. On this, the sum assured is guaranteed which remains unchanged throughout the policy term.
• Decreasing Life Insurance – In this kind of policy the sum or the premium decreases as the duration of the policy decreases. This kind of policy is generally used to protect capital and mortgage in event of death of the insurer.
• Renewable Term Insurance – In this kind, the policy can be renewed at the end of the policy term. This kind of policy is generally used in cases where the insured is still alive and the policy is about to end.
• Convertible Term Insurance – It’s a level term insurance where the policy can be converted into an endowment or pure insurance policy after the completion of 3 years of term insurance policy.
• Increasing Term Insurance – In a number of chances the value of money decreases with inflation. Consequently, this kind of policy curbs down the escalating sum assured.
• Index or Stock Linked Term Insurance – Some insurers provide the option of increasing the premium each year in proportion to the increase in Retail/Stock price.

Term plans are good in cases where the insured person is working in high risk environment like armed forces, get involved in high risk sports like mountaineering, skiing; have a poor medical history like having high blood pressure etc. Those who are smokers or are above the age of 55 can also be categorized for term insurance.
Keeping in view all the policies, one must opt for at least a single term insurance policy, irrespective of the amount of premium one can pay…



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Heena Vasnani

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