What Are The Different Types Of Term Plan?
When you want to buy a term plan online, simply looking at its features and benefits won’t help. You also have to consider what type of term plan you want and which suits your requirement best. As such, diving into the details of every kind of term plan is essential.
In this blog, we are going to outline the essential types of term plans. You can understand them carefully so that you can buy the plan without a second thought. But we advise you to conduct additional research before you buy the life insurance term plan. It will help you make the right choice for yourself.
Level Term Plan
The most common form of term plan online is the level term plan. It is simple to understand and acts as the perfect fit for all beginner policyholders. The benefits are provided to the nominee once the policyholder is no more. The sum assured is also fixed throughout the tenure. So, you do not have to determine anything extra. This plan is ideal for those who do not want a tailored approach or do not want to face enough complexities.
TROP (Return Of Premiums) Plan
Return Of premium plans is a crucial part of the life insurance term plan. People who want to receive maturity benefits can scout for this plan. So, when you get the maturity benefit, your total premium paid will be refunded to you during the tenure period. So, you can use this money to enjoy a peaceful retirement life, for children’s marriage, education, and more. You can use them at your convenience. As a result, you are highly likely to enjoy financial stability even when you cannot work.
Increasing Term Plan
In this type of term plan online, the policyholder can increase their sum insured each year during the tenure period. But the premium will not change. So, they can increase the sum insured without changing the premium value at all. But this is the main reason why these plans may be a bit out-of-the-budget for many policyholders. Make sure you consider that before you scout for it.
Decreasing Term Plan
In this type of life insurance term plan, the policyholder’s sum insured keeps decreasing annually to level with the reduced insurance demands of the policyholder. Generally, such a plan is for those who have already acquired a massive loan or EMI. So, before you sign up for this, run a quick scan across its features, benefits, and limitations to be on the safe side.
Convertible Term Plan
These are flexible types of term plans online that allow the policyholder to convert their policy whenever they want. This can be done at any future date without a second thought. For this, you need to consult your insurance provider. They will give you more relevant information about it so that you can scout for them safely.
The Bottom Line
A life insurance term plan is helpful for all the right reasons. If you want to buy them soon, make sure you evaluate each term plan properly to select the best one for yourself.