1. Pure Term Insurance

A pure term insurance is the simplest and the most popular term insurance plan. You pay an amount regularly to protect your family from the financial crisis after your demise. On your demise, your family will receive a large amount which can replace you financially.

2. Increasing Cover

Will Rs 1 Cr be sufficient after 20 years? The answer is No. Inflation plays a major role in our finances and not considering inflation is not a wise thing to do.

But what if you do not have to be worried about it and the term cover keeps increasing by a certain percentage every year? It will solve the problem of insufficient life cover.

In turn, the premium will also increase by the same rate by each year.

3. Decreasing Cover

After a certain age in your life, your liabilities decrease, you have a sufficient savings corpus and moreover your financial liabilities are reduced drastically.

The need of higher sum insured is when there is liabilities, mortgages, loans on your head. Unfortunately, you pass away, then the responsibilities might shift to your spouse or even worse to your children. This is the time they need an extra protection.

Once your liabilities start decreasing, your children are all grown up, your loans are paid off, you do not necessarily require a higher cover.

Therefore, this is a type of term insurance whose sum insured keeps decreasing and its premium will also decrease with the same percentage.

Riders

1. Life Stage Benefit

Term insurance policies cannot be changed. They are very inflexible and extremely unbending. A term insurance of ? 50 lakhs 10 years ago will remain the same throughout the policy. Therefore, the policy that was bought when you are young, might not be sufficient for your kids in the future.

The life stage benefit rider can of assistance. When you have taken the life stage benefit rider, the insurer will offer you an option of increasing your cover by an amount during major life events like marriage, birth of children.

When you know for sure that the number of your dependents will increase, then it is imperative to consider this rider.

2. Critical Illness Cover

Critical illnesses like paralysis, cancer, etc are illnesses that are extremely hard to cope with. It is not just the medical bills that are the problem. These diseases force you to take a halt from your day-to-day life.

You won’t be able to work, you family will have the pressure of going through without a household income till you’re fit to work and if you’re not, then there is a financial crisis in the family.

How would you cope up with this?

If you have opted for a critical illness benefit, this crisis canbe averted. When you are diagnosed with a critical illness (if you survive for 30 days), the insurer will pay out a sum from your term cover which can help you through these tough times.

This amount will be chosen and fixed by you while taking this benefit. The premium for your term insurance cover will also be waived off in case of diagnosis of critical illness.

Hence, this is a rider that can come as a life-saver in your tough times.

3. Accidental Death Benefit

We live in a country where accidents happen more than we can imagine. Today, India experiences around 415 average deaths per day due to accidents.

This number is alarming and an accidental cover can lift off a little weight from this situation.

No insurer can save you from accidents but with this benefit, an insurer can pay an additional sum to your family above the term cover in case of an accidental death.

An accidental cover can add an extra cushion during the blow of your accident.

4. Waiver of Premium

Imagine, you meet with an accident and the doctors tell you that you will be restricted to a wheelchair for the rest of your life. You are unable to perform your duties and you are forced to quit your job.

All your investments and financial decisions will change from that point because of this big change in your life.

What about your term insurance premium? Some insurers will waive off your premium in exchange for a fee paid in advance.

Hence, when this rider is taken, a small amount is increased in the premium so that the entire premium is waived off in case you are permanently disabled.