Income Replacement Plans

Income replacement plans are nothing but another name for TERM INSURANCE! Naturally, these are meant to protect your family, dependents, or the loved ones in case of all eventualities especially when you\'re no longer there to see to their well-being. It is ideal for people who,

Have others depending on them financially

Wish to protect their family from financial consequences after death

Have creditors

However, remember that income replacement plans are not for you, if you seek investment-linked plans, looking for whole life protection for your dependents, or intend to decrease the life insurance corpus over a plan term.

Points to Weigh

When choosing a term insurance consider the following,

Your term insurance should be such that it is capable of replacing your income in case you\'re no longer there to take care of your dependents. It includes basic family expenditure, financial liabilities as loans, marriage, and education of children.

Also, the length of coverage is extremely important when you are thinking of term insurance as a part of income replacement plans. What is ideal tenure of coverage? It should cover you until you are ready to retire. So, try to go for a plan that offers flexibility of coverage.

Don\'t forget to take into account the crucial factor, inflation. Today, insurers are offering term insurance with an increasing cover at the rate of 5% to 10% annually. Some assured increases automatically as the time passes and it balances inflation successfully.

When you are thinking of term insurance, specifically as an income replacement plan, opting for those that offer RETURN OF PREMIUM makes sense. These are also known as TROP Plans. It will adequately replace your income while offering premium refund upon maturity.

Important Features

Premiums are decided as per the age of the person because it determines the risk factor involved. So the sooner you go for it lower the premiums and larger the cover.

Policy terms for such plans are generally between 15 years to 20 years. However, those who want may opt to increase it until 65 years to 70 years.

Premium amounts remain uniform throughout your policy term except in case of broken contract.

If you are expecting high returns than term insurance may no longer be cost-effective.

With many insurance companies offering Term Insurance, make informative decisions with us. Feel free to contact us, toll–free 1800-103-3999 or write to us at enquiry@policybazaar.com

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What our clients say

I am pleased with the services and guidance provided by policybazaar in choosing and buying the term plan

Vivek Chauhan

Thanks to Policybazaar for suggesting term policy. I appreciate your great support

Jiwan Singh

I must say that for buying any new insurance , Policybazaar would always be my 1st choice. You guys are doing a good job.

Vipin Pagey

Thanks for the help that you rendered to me for buying the product appropriate for my needs. Appreciate your help.

Manish Dandona

I almost bought a term policy from Agent. Thanks to Policybazaar, I came to know that the premium I am paying for this policy to agent is much more higher than online policy. I would not hesitate to c...

Gyan Sinha

I am very happy to have bought this policy via Policy Bazaar,With out your constant help and regular followups,I would have not been able to get my Insurance matters in order.

Chandu Nannapaneni

I am extremely satisfied with the overall experience on Policybazaar.It was indeed a perfect choice to go with Policybazaar in the first place for my requirement of Insurance. I would definitely be ad...

Indranjan Bhanja

The Service provided by PolicyBazaar's Executives were excellent and deserve a pat.

Dr.M.Balasubramanian

Thanks for all your support . Policybazaar team has been pretty diligent with the follow ups and my request. Appreciate the good work.

Mridul Pokhriyal

Keep up the good work! will surely recommend Policy Bazaar to my peers !.

Raj Patel

I am very happy to receive such a good service from you by taking a term plan which has protected my family.

Manu Gopal

I would like to thank PolicyBazaar for assisting me in taking a wise decision

Punit Sharma

Its pleasure to have this kind of services from Policybazaar. Great services provided for my life protection policy issuance.

Mihir Lad

I appreciate the service and support in helping me buy. Hoping that this service will continue in future as well for hassle free transactions.

Prakash Singh

Income Replacement