Among the different forms of life insurance policies, term insurance is the most affordable form. These days, people are more into buying term plans as they can easily find the best term insurance plans available.
Term insurance not only secures your family in a financial aspect but also provides tax benefits as well. Those who still cannot figure out what a term insurance plan is, it is just like another life insurance policy that provides life coverage for a specific period or term of years. In case the policyholder dies during the plan tenure, the beneficiary receives a death benefit under the chosen term plan.
You should also know that not all term plans are the same. They differ in terms of various features, as defined in the policy contract. Let’s talk more about this.
Table of Contents
Different Variants Of a Term Plan
Whether it is a life insurance or health insurance policy add-on, you can choose from a list of available variants that suit your financial capabilities. Following are the different variants of best term insurance plans that provide financial security and futuristic planning for your family:
1. Online term plan
2. Smart term plan
3. Critical illness coverage
4. Term plan with return of premium
5. Covid insurance
Online Term Plan
An online term plan is a term insurance policy that is purchased online. Everyone looks for the best term plan in India that is available at a nominal premium. An online term plan can be considered the best term insurance plans, well known for its affordable cost.
In other words, the cost saved from online purchase at the insurer’s side is transferred to the insured – which is one of the benefits of term insurance. Compared to other insurance types, an online term plan is available at a premium that you can easily afford, irrespective of your earnings. It also helps in easy comparison of features and benefits when buying a term insurance plan online.
Moreover, if you buy term insurance online, you can also choose from different rider options available with these plans.
Smart Term Plan
A smart term plan is one of the best term insurance plans that cater to people of different age groups and lifestyle. It’s a customizable term plan that offers protection against disability, critical illness, and death. This means you can customize your plan coverage by choosing the desired benefits accordingly.
Like for instance, if you are single, you need term insurance to support your parent’s regular expenses in your absence. If you are just married, then you will need a backup plan to secure your spouse’s future needs, even in your absence. Similarly, if you are married and have kids, you need to have a term plan that supports your family financially and helps maintain their current lifestyle, even after you are gone.
In case you survive the policy period under the base policy, then you can get back your premiums under the return of premium option chosen with the policy. There are multiple payment options for smart term plans like limited pay, regular pay, or pay until 60.
Critical Illness Coverage
Life is full of uncertainties. You never know what comes tomorrow. What if you come to know you are suffering from a critical illness that requires a huge amount of treatment? The scenarios are many to drain your savings. Although a term plan will offer life cover only, you can choose critical illness coverage with term plan riders.
A critical illness add-on provides financial security to your family against many life-threatening health diseases. Under this term plan, you will get a lump sum amount when the insured is diagnosed with a critical illness. Critical illnesses include many diseases that are life-threatening, such as cardiovascular diseases. You can add this rider to your term policy to get additional insurance benefits.
Term Plan With Return Of Premium Option
As stated above, a term insurance plan only provides life cover to the beneficiary in the event of the insured’s death. It does not offer any benefits on maturity unless you have chosen the return of premium option.
Term Plan with Return of Premium is considered the best term insurance plan that requires you to pay a specific premium amount. The insurer will, in return, pay you back the total premiums paid by you if you survive the policy period. This total premium amount returned by the insurer will be tax-exempted.
Covid-19 Insurance Plan
Amidst the global pandemic with its increased death rates, Covid-19 insurance plans are also available in the market. You can also choose some of the best term insurance plans offering Covid-19 coverage through riders. These riders provide financial support for the medical expenses incurred by the policyholder for treating COVID-19 disease. With the Covid-19 insurance plan, you will receive an assured additional sum on death due to Covid-19. If the cover is under the COVID-19 insurance rider, this is an additional sum apart from the assured base policy amount.
As detailed above, different terms plans have different features and benefits. If you have plans to buy one, make sure you research different plans thoroughly before making the final decision.
