Prices Increasing soon Prices Increasing Soon

Types of Term Insurance Plans

If you are planning to buy a term insurance plan, the chances are quite high that you must have gone through a number of options that claim to provide you with plethora of benefits. And it is sure to confuse even the most seasoned of investors. During the last decade, the insurance industry in India has broadened rampantly and several insurance companies have introduced a wide array of term insurance plans to meet the customer needs.

Read more
Gets ₹1 Cr. Life Cover at just
COVID-19 Covered
The Policybazaar Advantage
Dedicated claim support for family FREE
Upto 10% discount for buying online
Only certified experts will call you on 100% recorded lines
We are rated~
6.7 Crore
Registered Consumers
Insurance Partners
3.4 Crore
Policies Sold

#All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply

By clicking on "View plans" you agree to our Privacy Policy and Terms of use

~Source - Google Review Rating available on:-

Life is Unpredictable! Protect your family’s future
Get ₹1 Crore Life cover starting from ₹384/month+
We don’t spam
Check Your Premium Now
Please wait. We Are Processing..
Get Updates on WhatsApp
The Policybazaar Advantage
Policybazaar Advantage Icon
Dedicated claim support for family FREE
Policybazaar team will help and support you at the time of claim. A personal claim handler from our team of experts will get in touch with you when your nominee applies for a claim on our website.
Policybazaar Advantage Icon
100% calls recorded to ensure no mis-selling
We will make sure you get what is promised by the advisors. We conduct regular monitoring of our calls to make sure you get the best experience.
Policybazaar Advantage Icon
Exclusive lifetime discount upto 5% for buying online
The discounts will be valid for the entire policy payment term and is not available if you choose to buy the insurance through offline agents.
Policybazaar Advantage Icon
Advisors available in your city
Our advisors are available in more than 55 cities across India and can help you at your doorstep in understanding the plans and in documentation.
Policybazaar Advantage Icon
Refund at the click of a button
In case you aren’t happy with your purchase, you can cancel your policy hassle-free at the click of a button. We will help you with the cancellation and refund of your policy.

Term insurance plan are one of the most basic and traditional forms of life insurance. These are basically protection plans that are designed to protect one’s family against unforeseen circumstances by offering financial security to manage their expenses if you are not around with them anymore.

A term insurance plan has a specific time period assigned to it, which is also known as the plan term. In case the policyholder/life insured dies during this plan term, his/her nominees are liable to be paid the sum assured by the insurance company.

The sum assured is the coverage amount agreed by the policyholder at the time of purchasing the policy and this benefit is only payable in case of her/his death. In case, the term plan completes the fixed term assigned to it and the life insured is still alive, the plan will attain maturity. Once the plan matures, no benefit is paid to the insured. This is the case with pure protection term insurance plan that comes with death coverage.

Here’s a guide to different term insurance plans that have been broadly classified into 6 different types, based on their coverage and term insurance benefits

  1. Level Term Plans

    This is the most basic and simple form of term insurance where the sum assured is fixed throughout the policy tenure and benefits will be paid to the nominee on the death of the life insured.

  2. TROP (Return of Premium) Plans

    Unlike level term insurance, these plans come with maturity benefit wherein the total premium paid will be returned to the life insured if she/he survives the policy tenure.

  3. Increasing Term Plans

    In these plans, the policyholder has the option to increase the sum assured on annual basis during the policy tenure, while maintaining the premium amount at the same value. Due to this reason, the premium for these plans is naturally on a bit higher side as compared to level term plans.

  4. Decreasing Term Plans

    Unlike increasing term plans, the sum assured keeps on decreasing every year in these plans to meet the decreasing insurance requirements of the life assured. These plans come handy in the situations wherein the policyholder has already taken a huge home/personal loan or paying an EMI (Equated Monthly Installment).

    In this type of plan, the sum assured keeps on decreasing at chosen frequency with the payment of EMIs. It also decreases the total loan amount.

  5. Convertible Term Plans

    These plans come with an option wherein the policyholder can convert these plans into any other type of plan at a future date.  For instance, if you have bought a term insurance plan for 20 years, but after 5 years if you want to convert it into an endowment plan, a whole life insurance plan, etc., you can do so without any hassle.

  6. Term Plans with Riders

    This type of plan comes with rider options such as accidental death cover, critical illness cover, etc. which can be purchased along with the normal term plan by paying a small premium amount. For example, if an individual opts for a rider and get a premium waiver benefit, s/he won’t need to pay the future premiums in case of any eventualities for the particular rider s/he has opted for.

Points To Consider While Buying Term Plans:

  • Not every person is literate in financial terms, especially when it comes to managing money. Now, try to imagine situations where something happens to you and your nominee decides to invest all the money he has got from your term plan in one go.

    Let’s say, based on a friendly advice by a friend/family, he invests the money in a chit funds and eventually loses all the money. You wouldn’t want that to happen. That money is meant to take care of your family’s expenses when you are not around to take care of them and thus, needs to be managed well.

    So, make sure to inform and educate your chosen nominee of the term plan you have invested in and what to do with the sum assured.

  • Another important factor to consider is temptation – the temptation to overspend. When a person gets access to too much money at once, the desire to overspend is quite natural. In her/his shopping haste, one may go overboard and spend on the things that may not be affordable for her/him in the long run. This can further lead to erosion of the claim amount corpus and can eventually result into financial hardships.

Over to You!

While nobody wants anything uncertain to happen in their lives; the uncertainties of life doesn’t spare anyone. Life throws-in a lot of surprises and these surprises may as well be bitter. If you are short of time, you can also opt to go for online term insurance plans. These days, insurance providers are constantly working towards making their websites more user-friendly and easy to use. It is absolutely safe to buy term plans via online, as they come with a range of benefits such as convenient to use, quick responsiveness and lower costs availability.

Different types of Plans

Different types of Plans

Premium By Age

Term insurance articles

  • Recent Article
  • Popular Articles
01 Mar 2024

PNB 2 Crore Term Insurance

Securing your family's financial future involves detailed

Read more
27 Feb 2024

SBI Life 5 Crore Term Insurance

SBI life insurance offers a variety of plans with different life

Read more
27 Feb 2024

Bajaj Allianz Life Insurance Customer Care

Bajaj Allianz Life Insurance is one of India’s leading life

Read more
26 Feb 2024

Kotak 2 Crore Term Insurance

Securing your family's financial future involves detailed

Read more
26 Feb 2024

Tata AIA 2 Crore Term Insurance

Protecting your family's financial future requires careful

Read more
07 Mar 2014

1 Crore Term Insurance - Buy ₹1 Cr Term Insurance Plan...

Term insurance is a type of insurance plan that offers financial security to your loved ones in the event of your

Read more
27 Jun 2018

What Is Difference Between Term Insurance And Life Insurance

Life insurance plans help you create wealth, protect your family for the entire policy term, and save on your

Read more
12 Jun 2018

Claim Settlement Ratio of Term Insurance Plan Providers

Claim Settlement Ratio (CSR) is an important parameter in the selection of an insurance policy. If you are going

Read more
24 Mar 2020

LIC Term Insurance 1 Crore

LIC of India offers various plans to help you secure the financial future of your loved ones. To ensure your

Read more
03 Dec 2020

What Is Saral Jeevan Bima

Saral Jeevan Bima (SJB) is a simple term insurance plan that offers financial protection for policyholder’s

Read more
View Plans
Download the Policybazaar app
to manage all your insurance needs.