Types of term insurance

Types of term Insurance plans

If you have kept your eyes and ears open over the recent few years, there is a really decent chance that you would have known about different types of term insurance plans.  Although they are typically known for having low insurance premiums, while in all actuality there is considerably more to different type of term insurance plans than what meets the eye. In straightforward terms, they are protection plans that give you coverage with the view to protect your family’s future.

Before you make up your mind to buy a term plan for yourself, it’s important to understand the various different types of term insurance plan that are available.

Types of term insurance

  1. Pure Term Plan

    A pure term plan is the most common type of term life insurance, and the one most people are familiar with. Pure term insurance is exactly what the term implies. When you buy this plan, the premium and the life cover (sum assured) that you choose,remain constant for the entire tenure of the plan and the benefits are paid to your nominee upon your demise.However, if you survive the term, you get back nothing.

    ‘Felix Online Term Plan’ offered by Future General is one such plan.

    • • This plan comes with preferential premium rates if you do not smoke
    • • Lower premium rates for women
    • • On opting for higher sum assured you can avail discount in premium rates
  2. Return of Premium Plan

    Not everybody likes the thought of paying premiums for years and not getting anything back at the end. Return of premium plans are meant for such people.

    As the name suggests, in case of return of premium term plans, premiums are returned to you if you survive till maturity of the policy. Thus, unlike pure term plans, these plans have maturity benefit. In case you pass away during the policy tenure, your nominee gets the sum assured.

    Future General offers two such plans:

    • • Future General Term with Return of Premium
    • • Future General POS Term with Return of Premium

    For both these plans, you get the flexibility to pick the period of premium payment and period of protection.

    “Return of Premium Plans address concerns of people who think that the money gets wasted in term insurance plans”

  3. Other Term Plans

    Other common types are:

    • • Decreasing Term Plan
    • • Increasing term Plan

    Decreasing term plan is also known as a mortgage term insurance. The purpose of such plans to pay off your mortgage upon your demise. The idea behind such plan is- as your mortgage mortises and declines in balance, you need less insurance coverage each year. Thus, with the decline in your mortgage balance, the amount of death benefit decreases each year.

    However,even if the death benefit declines, the premium remains constant. Therefore, this type of planes not the most cost-effective in later years when the death benefit is much lower.

    Whereas ‘increasing term plan’, as the name proposes, works opposite to the ‘decreasing term plan’ that we discussed above. Here, the sum assured increases as your age increases and the premium stays consistent.

    The idea behind increasing term insurance depends on the rising inflation; indicating that the sum assured won’t be adequate, and at the end of the day you might be under insured. To deal with this worry insurance companies offer increasing term plans where the cover increases at a predetermined rate.

    However, policy tenure of this kind of plan is not as liberal as the pure term plan. Further; there might be limited riders,and the premium is typically higher than other sorts of term protection talked about above.

  4. Always reinvest your investment returns

    The golden question is “How can I get my capital to increase?”.Of course, prudent financial investments help reach this goal. But, reinvestment of your returns also aids maximize your savings as much as possible.

    Continuously reinvesting the benefits of an investment over time allows you to maximize your returns and the more times it is applied, the more the process of interest accumulation accelerates. Simply put, reinvesting helps build wealth.

Types of term insurance

 The Importance of  Term Life Insurance

In case of a home or car insurance, you get the money equal to your loss. There is no fixed amount of compensation. But in the case of Life insurance, the family would get a fixed amount. This fixed amount is called as the sum assured.

One thing I would like to say, don’t avoid talking about the death. It is scary but the universal truth. Hence, we should be prepared for that. And the first step of this preparation is the term insurance. It gives you the peace of mind.

Types of term insurance

Concept of  Term life insurance Plan

A term life insurance plan gives a fixed amount to the family in case the policyholder dies. Note, the family would get money only if the policyholder dies during the policy term.

So, if the policyholder lives his life, No one would get money. That is the bitter truth. The money is linked to the death. But this bitter truth is necessary for the well being of your family.

You would agree that death is not predictable. It can come to anyone, anywhere. So, if it is the sudden death of the breadwinner, the family would have the double loss. The emotional loss and the financial loss.

The emotional loss can’t be compensated but the term insurance can compensate the financial loss. This is the concept of Insurance. It compensates the unpredictable financial loss. Be it a car insurance, home insurance or life insurance. The primary objective of insurance is to compensate the financial loss.

The Bottom Line:

Understanding the basic types of term insurance plans will certainly enable you to choose the best product based on your budget, requirement, and financial objectives.

Follow us on INSTAGRAM:

33 Instagram Marketing Statistics for 2018 | DrumUp Blog

Follow us on FACEBOOK:

635 thoughts on “Types of term insurance

  1. It is the best time to make some plans for the longer
    term and it is time to be happy. I have read this publish and if I may
    I want to counsel you few interesting things or suggestions.
    Perhaps you can write subsequent articles relating to this article.
    I desire to read more things about it!

  2. Great site you have here but I was wondering if you knew of any user discussion forums that cover the same topics discussed here?

    I’d really love to be a part of group where I can get responses from other
    experienced individuals that share the same interest.
    If you have any suggestions, please let me know.
    Appreciate it!

  3. The very next time I read a blog, Hopefully it won’t fail me as much as this particular one. I mean, Yes, it was my choice to read through, nonetheless I genuinely thought you’d have something useful to talk about. All I hear is a bunch of moaning about something you can fix if you weren’t too busy seeking attention.

  4. Aw, this was an extremely good post. Finding the time and actual effort to make a good articleÖ but what can I sayÖ I procrastinate a lot and never seem to get anything done.

  5. Iím amazed, I must say. Rarely do I come across a blog thatís both equally educative and amusing, and let me tell you, you’ve hit the nail on the head. The issue is an issue that too few people are speaking intelligently about. Now i’m very happy I found this in my hunt for something relating to this.

  6. You read it – then XEvil 5.0 really works!!

    Want to post your text to 12.000.000 (12 MILLIONS!) websites? No problem – with new “XEvil 5.0 + XRumer 19.0.8” software complex!
    Blogs, forums, boards, shops, guestbooks, social networks – any engines with any captchas!
    XEvil also compatible with any SEO/SMM programms and scripts, and can accept captchas from any source. Just try it! 😉

    Regards, Mashaseari1579

    P.S. Huge discounts are available (up to 50%!) for a short review about XEvil on any popular forum or platform. Just ask Official support for discount!

  7. By way of introduction, I am Mark Schaefer, and I represent Nutritional Products International. We serve both international and domestic manufacturers who are seeking to gain more distribution within the United States. Your brand recently caught my attention, so I am contacting you today to discuss the possibility of expanding your national distribution reach.We provide expertise in all areas of distribution, and our offerings include the following: Turnkey/One-stop solution, Active accounts with major U.S. distributors and retailers, Our executive team held executive positions with Walmart and Amazon, Our proven sales force has public relations, branding, and marketing all under one roof, We focus on both new and existing product lines, Warehousing and logistics. Our company has a proven history of initiating accounts and placing orders with major distribution outlets. Our history allows us to have intimate and unique relationships with key buyers across the United States, thus giving your brand a fast track to market in a professional manner. Please contact me directly so that we can discuss your brand further. Kind Regards, Mark Schaefer, [email protected], VP of Business Development, Nutritional Products International, 101 Plaza Real S, Ste #224, Boca Raton, FL 33432, Office: 561-544-0719

  8. I do not even know how I ended up here, but I thought this post was good. I don’t know who you are but certainly you’re going to a famous blogger if you aren’t already 😉 Cheers!

  9. Howdy! I could have sworn I’ve been to this blog before but after browsing through some of the post I realized it’s new to me. Nonetheless, I’m definitely delighted I found it and I’ll be book-marking and checking back frequently!

  10. Vielen Dank für Die Schönen Beitrag. Ich sind schon erforschen dieses Thema für irgendwann . Die Dinge und Besonderheiten Sie angeben, ich war nicht aufmerksam. Ich könnte sein nachfolgend Ihre website jetzt und mit etwas Glück Sie können zusätzlich Ansichten und Einsichten.

  11. Wow that was odd. I just wrote an really long comment but after I clicked submit my comment didn’t show up. Grrrr… well I’m not writing all that over again. Anyhow, just wanted to say fantastic blog!

  12. Unquestionably believe that which you said.
    Your favorite justification appeared to be on the internet
    the easiest thing to be aware of. I say to you, I certainly get irked while
    people think about worries that they just do not know
    about. You managed to hit the nail upon the top and also defined out the whole thing without having
    side-effects , people could take a signal. Will probably be back
    to get more. Thanks http://ciaalis2u.com/

  13. It’s actually a cool and helpful piece of information. I am happy that you just shared this helpful information with us. Please stay us up to date like this. Thank you for sharing.

  14. I just could not depart your website prior to suggesting that I extremely enjoyed the standard information a person provide for your visitors? Is going to be back often to check up on new posts

  15. I do agree with all the concepts you’ve introduced on your post. They’re very convincing and can definitely work. Still, the posts are too brief for beginners. May you please extend them a little from next time? Thanks for the post.

  16. Excellent read, I just passed this onto a friend who was doing some research on that. And he just bought me lunch because I found it for him smile Thus let me rephrase that: Thanks for lunch!

  17. I love your blog.. very nice colors & theme. Did you design this website yourself or did you hire someone to do it for you? Plz answer back as I’m looking to construct my own blog and would like to know where u got this from. thanks a lot

  18. Aw, this was a very nice post. In thought I would like to put in writing like this moreover – taking time and actual effort to make an excellent article… however what can I say… I procrastinate alot and by no means seem to get something done.

  19. excellent post, very informative. I wonder why the other specialists of this sector don’t notice this. You should continue your writing. I’m sure, you’ve a huge readers’ base already!

  20. hi!,I love your writing so so much! proportion we be in contact extra about your article on AOL? I require a specialist in this area to resolve my problem. May be that is you! Taking a look forward to see you.

  21. Generally I don’t read post on blogs, but I would like to say that this write-up very forced me to try and do so! Your writing style has been surprised me. Thanks, very nice article.

  22. I want to express appreciation to this writer just for bailing me out of this predicament. Because of searching throughout the internet and meeting recommendations that were not pleasant, I figured my life was over. Living without the approaches to the problems you’ve fixed by way of the review is a crucial case, as well as those that would have negatively damaged my career if I hadn’t discovered your website. Your actual understanding and kindness in playing with the whole lot was invaluable. I’m not sure what I would’ve done if I hadn’t discovered such a thing like this. I am able to at this point relish my future. Thanks very much for this specialized and results-oriented help. I won’t hesitate to recommend your web page to any individual who should receive assistance on this topic.

  23. Nearly all of whatever you say happens to be supprisingly accurate and it makes me wonder why I had not looked at this with this light previously. Your article really did turn the light on for me as far as this topic goes. But at this time there is actually one particular factor I am not too comfortable with and while I try to reconcile that with the main theme of the issue, permit me observe exactly what the rest of the readers have to say.Nicely done.

  24. You can certainly see your expertise within the article you write. The world hopes for even more passionate writers like you who are not afraid to say how they believe. All the time follow your heart.|

  25. I know this if off topic but I’m looking into starting my own weblog and was curious what all is required to get set up? I’m assuming having a blog like yours would cost a pretty penny? I’m not very internet smart so I’m not 100 certain. Any suggestions or advice would be greatly appreciated. Cheers

  26. Do you mind if I quote a couple of your posts as long as I provide credit and sources back to your webpage? My blog site is in the exact same area of interest as yours and my users would really benefit from a lot of the information you present here. Please let me know if this okay with you. Appreciate it!

  27. Thanks for one’s marvelous posting! I actually enjoyed reading it, you happen to be a great author.I will be sure to bookmark your blog and will eventually come back in the foreseeable future. I want to encourage you to ultimately continue your great posts, have a nice morning!

  28. After checking out a handful of the articles on your blog, I honestly like your technique of writing a blog. I added it to my bookmark site list and will be checking back soon. Take a look at my web site as well and tell me your opinion.|

  29. whoah this blog is wonderful i really like reading your articles. Keep up the great paintings! You realize, a lot of people are hunting round for this info, you could help them greatly.

  30. whoah this blog is wonderful i really like reading your articles. Keep up the great paintings! You realize, a lot of people are hunting round for this info, you could help them greatly.

Leave a Reply

Your email address will not be published. Required fields are marked *