Term insurance is a type of life insurance policy, which offers financial coverage to your family in case of your death, disease or disability. It is one of the few investment options in the market that offer a high sum assured at very low premiums.

Why Is It Important To Invest In Term Insurance?

With the frequency of accidents and diseases increasing per day, your plan of living a long life may seem far fetched. That means, if you die, your family must have a financial backup to take care of their needs. That's why investment experts in the industry suggest investing in a term insurance plan and that too at a young age. Term insurance will help your family to live a stable life even after your demise. It will provide much needed financial support to meet their daily expenses and fulfil their long-term goals as well.

What Are The Types Of Term Insurance Plans?

• Level Term Plan

It is the simplest plan of the lot. Here you will see zero change in the sum assured (through the policy) and the nominee will reap the benefits once the insured is dead.

• TROP (Term Return of Premium)

The best part of the TROP plan is it assures maturity benefits. This policy turns out to be beneficial if the insured survives after the term of the policy.

• Increasing Term Insurance Plan

Here the sum assured will increase every year. This plan is launched keeping in mind the growing rate of inflation.

• Decreasing Term Insurance Plan

Here the sum assured will decrease with time. This plan is usually issued by banks to recover the loan.

• Convertible Term Insurance Plan

Convertible plans enable many add-ons on the existing Term Insurance plan that you may have. You can choose any plan as suitable. It can be a market-linked plan as well. This is a good way of covering life risks along with returns.

What Riders Are Available Under Term Insurance?

You will get a few rider options such as a premium waiver, accidental death cover etc. which you can avail with your term insurance policy on paying an extra premium. A brief explanation of such riders is given below-

Critical illness Rider

Critical illness riders cover many illnesses that are deadly in nature. You can buy this rider if you are prone to any such illness. Before taking the rider, you can always check the additional cost and decide accordingly. Benefits of Critical Illness Rider:
• Covers more than 100 deadly diseases.
• Entire Hospitalization expenses are covered.

• Accidental Death Rider

If this rider is taken, then accidental death is covered. The insurance company will offer the sum assured along with the rider benefit to the nominee of the policyholder.

• Benefits of Accidental Death Rider:

• Provides added financial protection.
• Some insurance policies provide this as an inbuilt feature.

• Cashless Treatment Rider

Here complete cashless treatment is provided at the time of any illness.