Different Types of Term Insurance in India

When it comes to term insurance, there are very few countries in the world that match up to the expanse of India. This can be said because the many life insurance companies of India, with their large pool of term plans, have made this form of life insurance accessible to every Indian in every part of the country. There are different types of term plans to choose from and that makes the plans even more accessible. Take a look at this article to know more about the two main types of term insurance – regular and group.

Regular Term Insurance Plan

Let us first explore the regular term insurance plans. These plans are the standard term insurance policies that offer a life cover at a low rate. As an individual of any age above 18 years, you can choose to insure your life with a term insurance plan. Almost every single life insurance provider of India has term plans on offer. You can choose from a wide selection by comparing the plans online. It is very easy to do so and can be done in just a few minutes. Once you find a proper term life cover, you can ensure your life stays insured. If anything happens to you after that, your family will get a death benefit and can carry on with their lives without any financial issues bothering them. Here are the major benefits of a regular term plan:

  • Inexpensive: You can get a large term insurance cover at a low rate.
  • Long cover: The plans are available for long durations of time.
  • Large cover: You can choose a very large cover when you buy a regular term plan.
  • Easy payment options: There are four different payment modes for your premium payments. You can choose a mode that suits you and easily manage the financial liability you have towards the plan.

Group Term Insurance Plan

As an employee of a company, you enjoy many benefits. One of them is getting a term life cover. As soon as you get on the payrolls of a big company, you are brought under a common term insurance cover. The premium is deducted from your salary directly and you don’t have to worry about anything. Some of the advantages of a group term insurance cover are:

  • Covers death and disability: If you die or become disabled due to an accident or a natural cause, your family will get the sum assured.
  • Medical test not needed: This is a major benefit of having a group term cover. Since you are seen as part of a large group, you are not asked to undergo any individual medical test. You can therefore get the cover instantly, even if there are some health problems affecting you. It would be very difficult for you to get a suitable individual term cover in the same situation.
  • No worries about payment, renewals: Since your employer takes care of all the formalities, you do not have to worry about the premium payments, the plan renewals, etc. You can simply focus on your work and ensure you remain employed in the organisation. You will stay insured for as long as you remain a part of the employee group.
  • Aid at the time of claim: One of the biggest concerns policyholders have is that they won’t be around at the time of a claim to help their hapless family. With a group plan this problem is tackled. A person from the employer’s office is always available for assistance. Your boss will ensure your family gets the claim amount so you can stay covered with a lot of mental peace.

So you can see just how beneficial a group term insurance cover is. If you do not have it as an employee benefit, check with your employer to understand how you can get the cover.

The Bottom Line

Indeed, term insurance is a fantastic form of life insurance. And the two types of term plans have their own benefits. It is good to have a group cover, but it is highly advisable for you to have an individual cover too. You have more control over the individual cover. So enjoy the group cover but make your own provisions too, just to stay on the safer side. Once that is done, you will find a truly comprehensive term insurance cover for yourself.

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