In today’s world, it is crucial to have sufficient financial protection and security to fight uncertainties. Purchasing a term insurance plan is one of the best ways to make sure that your family has that financial security. Due to the perception that term insurance is expensive, a lot of individuals tend to stay away from it. In this blog, you will learn about affordable term insurance plans in India.

What Affordable Term Insurance Plans are Available in India?

From decreasing term insurance to level term insurance, there are different options to choose from when it comes to the best term insurance plan in India. Here are the five types of plans you can choose to secure your family’s future without burning a hole in your wallet:

1. Level Term Plans

When it comes to securing your family's financial future, level term plans provide a straightforward approach. Throughout its term, you can enjoy the coverage and stability of fixed premiums with these plans. In case of your unfortunate demise, your beneficiary will receive a death benefit.

2. Decreasing Term Insurance Plans

A decreasing term insurance policy offers life coverage that, through a fixed period of time, decreases each year. These plans are ideal for covering specific financial liabilities such as a mortgage loan, personal loan, etc., as the outstanding amount gets lower and lower over time. Throughout the policy term, the premium for decreasing term insurance stays the same, saving you from inflation-related rises in product prices.

3. Return of the Premium Term Plans

Return of the Premium Plans, like general term plans, provides the sum assured in case the policyholder dies within the plan term. However, it is distinctive in its promise of offering a refund of the premium payment if the policyholder survives the policy duration. After the policy is over, you can get a complete refund for your payment minus the applicable taxes.

As it returns all your investment, it is costlier (usually twice as much) than a regular term insurance plan. However, it allows you to get peace of mind throughout the term.

4. Convertible Term Plans

Convertible term plans allow policyholders to switch to any other insurance policy they deem fit later in the policy term. For example, suppose you have opted for a 20-year term policy and figured that a whole life insurance plan or an endowment policy would serve you better after only five years of premium payment. You can easily switch to that plan.

This feature makes this term plan an excellent choice for many, as it allows them the flexibility to change midway and save money.

5. Increasing Term Plans

Increasing term plans allows policyholders to increase their life coverage per year while keeping the annual premium payment the same during the policy term. It is justified that these plans would cost a little more than level term plans. This plan allows policyholders to increase life coverage, making it one of the most affordable ways to get sufficient coverage.

The Bottom Line

Now that you know the best term insurance plans in India, you can choose among them according to your specific financial requirements and capability. Apart from being affordable, term plans offer comprehensive coverage, tax benefits, customisation options and more.