Decreasing Term Insurance Plan

In today's times, the market is truly flooded with many options when it comes to life insurance products. Right from an endowment policy, money back plans to a unit-linked insurance plan, sometimes it becomes a tedious task what to choose.
The term insurance also popularly known as a protection plan is one such plan that has negligible risk and is a preferred choice for most of the customers. In this article, we will discuss the decreasing term insurance plan.

Read more
Get ₹1 Cr. Life Cover at just ₹411/month*
No medical checkup required
Save more with upto 10% discount
Covers COVID-19
Tax Benefit
Upto Rs. 46800
Life Cover Till Age
99 Years
8 Lakh+
Happy Customers

*Tax benefit is subject to changes in tax laws. *Standard T&C Apply

** Discount is offered by the insurance company as approved by IRDAI for the product under File & Use guidelines

Get ₹1 Cr. Life Cover at just ₹411/month*
No medical checkup required
Save more with upto 10% discount
Covers COVID-19
View plans
Please wait. We Are Processing..
Get Updates on WhatsApp
By clicking on "View plans" you agree to our Privacy Policy and Terms of use

When it comes to a decreasing term plan, the cover that is provided within the policy will keep decreasing each year on a predetermined rate. It is to be noted that the premium that is paid by the policyholder will remain the equivalent during the complete policy term.

Why Buy a Decreasing Term Life Insurance Plan?

Well, most of the features of a decreasing term insurance plan are similar to that of a term insurance plan.  Unlike a term insurance plan, the original sum assured that one reduces each year throughout the term of the policy.

The policyholder can decide the duration of the plan. Although the risk of the plan reduces even then the premium of the plan mostly remains unchanged. The premium rates for the plans are also low when compared to any term insurance plan wherein the sum assured of the plan remains equivalent. Upon the maturity of the plan, the sum assured is zero and when the sum assured is paid to the nominee upon the demise within the term plan then the sum assured will be paid applicable for the year.

What are the Advantages of Decreasing Term Insurance Plan?

The decreasing term insurance plans are the most beneficial when you have any liabilities or in the coming times, the expenses will decline, the dependents are likely to become independents and so forth. Listed below are some of the advantages of a decreasing term insurance plan:

  • Pocket-friendly

    As we all know, a term insurance plan is pocket-friendly amongst all the insurance products available in the market.  Undoubtedly, substantially it is more affordable than any of the conventional life insurance plan. When it comes to decreasing term insurance plan the premiums remain constant throughout the policy term.

  • Flexibility

    When it comes to a term insurance plan the key highlight is that it provides flexibility. Moreover, the plan can be enhanced by choosing certain term rider benefit options. In case of having decreasing term insurance plans, rider options such as accidental disability, terminal illness, etc can be chosen to enhance the plan.

  • Prime Coverage

    The insurance cover accessed by anyone is on the premise of the yearly income, liabilities and financial objectives. Now, the variable is subject to change with the age wherein the income increases and the liabilities decrease. For instance, if you opted for a specific sum of coverage at a young age, however, may not need the coverage lately then a decreasing term plan ensures that you the best level of coverage in life. Now, within this, the coverage decreases with the age that means liabilities also decreases. And, when you have a family with independent members then a large insurance cover is not required. So, opting for a decreasing life term insurance plan means that you possess the optimum coverage level.

  • Taking Care of the Liabilities

    With improving lifestyles and rise in expenditures it is normal to accumulate the liabilities for achieving life objectives. The liabilities such as a home, education or a car loan most likely are paid off by the retirement period. However, there might be specific liabilities and you surely would not want to let the family suffer due to any of the accumulated liabilities. Therefore, a decreasing term plan ensures that the family is not suffered even in your absence. It ring-fences the family financially from any liabilities when you are not around.

  • Tax Benefits

    Investing in the decreasing term plan enables you to save on the income tax. In case of a decreasing term life insurance plan, the premiums are entitled to a tax deduction of Rs 1.5 lakh within Section 80C. The benefits obtained from the term plan are tax-exempted within Section 10(10D). Most importantly, the tax benefits are subject to the provision and are amended regularly.

When is the Right Time to Choose a Decreasing Term Insurance Plan?

The reason to have a decreasing term insurance policy is that the needs of the people in regards to the life insurance might decrease with age wherein the liabilities such as a car loan, a home loan or any other sort of personal loans is either decrease or have been paid off that reduces the fixed expenses. Another imperative advantage of a decrease term insurance policy is that you will need to pay a less premium rate when compared to any other term insurance plans.

The Bottom Line

The primary objective behind investing in any of the life insurance product is to provide financial stability. It is prudent to go for a credible insurance provider with a proven track record so that the family members need not face any difficulties in receiving the benefits of the insurance.

Written By: PolicyBazaar

Term insurance articles

Recent Articles
Popular Articles
Term plan vs. Investment Plan: What to Know

29 Sep 2021

Investment, insurance, and saving for emergencies are the three...
Tax Benefits and Refund Details About Term Insurance

29 Sep 2021

Term Insurance is one of the best ways to cover your family...
Short Term vs. Long Term Disability Insurance: Everything to Know

29 Sep 2021

People are more likely to insure valuable assets such as cars...
Regular Term Plan or Return of Premium? What to Choose?

22 Sep 2021

Term insurance policy is one of the purest forms of policies...
Is Your Term Insurance Valid If You Move Abroad?

20 Sep 2021

Term insurance is the most effective way of providing security...
Types of Deaths Covered & Not Covered by Term Life Insurance
Types of Deaths Covered and Not Covered by Term Insurance When it comes to securing the future of your loved ones or...
Why Medical Test is Important in Term Insurance
Why Medical Test is Important in Term Insurance ‘No medical tests required’, you will find this clause blatantly...
10 Questions You Should Ask Before Buying Term Insurance
10 Questions You Should Ask Before Buying Term Insurance There are various doubts faced by customers when it comes...
Term Insurance for NRI in India
Term insurance offers financial protection to the family of the insured in case of demise. Every bread-earner...
6 Reasons Why Term Insurance is a Must Buy
6 Reasons Why Term Insurance is a Must Buy Life is short and one can never foretell what the future holds. To make...
Download the Policybazaar app
to manage all your insurance needs.