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How to know which term insurance plan is ideal for you
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Know the ideal Term Insurance Plan for you

Term insurance is the most affordable and simple form of life insurance available for a specific time period. It offers financial security to the policyholder’s family during uncertain times against regular payment of premiums. So, rest assured that your loved ones will be financially secured even in your absence when you buy a term insurance plan. In addition, this helps your family manage their future needs like children’s education, wedding, etc. So, which is the ideal term insurance plan for you? Let’s try and understand.

Best Term Insurance Plans in India

There are numerous term insurance plans available in the market offered by various insurance companies. These insurance providers offer both online and offline term insurance plans. Each term insurance plan comes with its own unique blend of features and benefits that make it the most adequate term insurance plan in the market. To completely understand these term plans, we should look at them in detail.

How to know which term insurance plan is ideal for you

  • Traditional Term Insurance Plan: A traditional term insurance plan is one that offers death benefits in case of the sudden demise of the policyholder. In addition, term insurance provides protection against various risks against the payment of a fixed insurance premium amount. The most popular term plan, and normally viewed as the best term insurance policy, is one that requires a yearly premium payment for insurance coverage.
  • Level Term Plan: The level term plan is perhaps the easiest type of term plan since the sum insured stays consistent during the policy time frame, and the payout benefit amount is given to the beneficiary upon the policyholder’s demise. The level term plan is broadly available in India and is offered by various insurance companies. The younger you are while buying this type of term insurance plan, the lower your premium charges will be.
  • Group Term Insurance Plan: A Group term insurance plan is a kind of term insurance policy that is specifically meant for companies, organizations, or associations. It provides coverage for all members present in the group. These plans give similar advantages as a single premium term plan. Yet, the complete inclusion is significantly more huge as far as illnesses or different things that are normally excluded in individual policies. Moreover, most of these term plans are offline since every insurance policy is custom-made to the group’s necessities buying the term insurance coverage.
  • Term Return of Premium (TROP) Plan: A Term Return of Premium (TROP) Plan is a term plan that returns the amount paid towards the term plan coverage if an individual survives the policy time. These term plans are becoming popular since the policyholder gets the sum paid in the term insurance plan later when the policy term gets over. Therefore, the invested amount does not go to waste in the case of TROP plans.
  • Critical Illness Cover: Along with the benefit of life insurance cover, this term plan incorporates critical illness cover, which pays out in case the insured gets diagnosed with any of the specified critical illnesses, like cancer—heart disease, renal failure, etc.
  • Accidental Death Benefit: In case of the insured’s accidental death, the beneficiary of the insurance policy gets life cover, along with the additional benefit of accidental death cover.
  • Decreasing Term Insurance Plan: In this type of term insurance plan, the policy coverage amount decreases every year by a predetermined percentage throughout the policy duration. These kinds of plans are ordinarily sold as home loan cover plans. A decreasing term plan is utilized to take care of loans. In case of the insured’s demise, the available sum assured amount is utilized for the repayment of the loan. The premium amount for decreasing term plans is lower than the regular term insurance policies. The decreasing term insurance policy provides financial assistance to the insured’s loved ones as well as tax benefits at a low premium cost.
  • Increasing Term Insurance Plan: Throughout the duration of the increasing term insurance plan, the insurance coverage keeps increasing till it reaches the defined maximum limit. This term plan serves to secure against the risk of growing inflation costs, which might impact the value of the death benefit the policyholder’s family receives.
  • Convertible Term Insurance Plan: Convertible term plans are offered by some of the insurance companies in India. As the name suggests, the primary advantage of buying a term insurance plan is that you can decide to convert one plan to another in the future. For instance, assuming that you took a term insurance plan for a very long time and after a period of say five years convert it to another policy such as an endowment plan.
  • Joint Life Term Insurance Plan: A joined term insurance plan is more affordable than two individual term insurance plans. Besides, the features and benefits remain the same, ensuring that the two individuals procure similar advantages from the policy. A joined term insurance plan is the most astounding choice since it incorporates insurance coverage for the spouse.


Overall, while choosing a term insurance policy, it is essential to comprehend these elements. You can likewise go through the policy document and terms and conditions to ensure that you comprehend which kinds of fatalities are not covered by your term insurance. You can visit iiflinsurance.com to know more about the different term insurance plans.

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