Level Premium Term Insurance is one where the premiums payable throughout the selected term remain the same for a pre-fixed sum assured. This eliminates the problem of paying increasing premiums year after year. It is generally available for periods ranging from 5 years to 30 years.

Convertible Term Insurance is where the life assured initially buys a pure term insurance policy with the option to later convert it into a plan of his choice e.g. permanent insurance like whole life or endowment. For instance, the policyholder can convert a term insurance policy after 5 years into an endowment plan for 20 years. In that case the premium changes and the policyholder is charged level premium as per the newly selected term and plan.

Term Insurance with return of Premiums comprises risk cover and savings element. In this policy the premiums paid are returned to the life assured if he/she survives the policy term. Premium for this policy is normally higher than for pure term insurance because some portion of the premium you pay is used up for risk cover and the balance – savings component — is invested in order to be able to return the amount you pay to you at the end of the policy. The insurer earns some return on investing the savings component of the premiums you pay. This return plus the savings component itself are later used by the insurer to return the full premium paid, back to you at the end of the policy.

Term Insurance with Guaranteed Renewal is a plan where at the end of the initial term, the policy can be renewed for a chosen term say, another 5 or 10 years, without any further proof of insurability e.g. medical examination.

Decreasing Term Insurance is where the sum assured steadily decreases year after year to match the decreasing insurance need. Such a policy is normally taken where the life assured has taken a large loan, e.g. a housing loan. Here the risk is of the person dying before being able to fully repay the loan. Therefore, the sum assured of the policy is usually taken as equal to the amount of loan to be repaid so that in case of demise of the loanee before he/she is able to repay the full loan, the sum assured or insurance proceeds can be used for this purpose. The policy term is equal to the time period in which the loan is to be repaid. As the outstanding loan amount decreases with repayment installments the sum assured under the policy also declines to match the outstanding loan amount.

Term Insurance with riders like critical illness rider, accidental death rider, disability rider etc is also available. These riders add value to the plain term policy but come on payment of extra premium.

Term Insurance benefit is also available as a rider to other basic insurance plans such as endowment plan, as value addition. For example, say a person has taken a 20 year endowment insurance policy. However, in the fifth year of this policy he feels that he should have higher death cover for the next 10 years as his children are young and would need greater financial support in case of his demise. In such a case, he can take a 10-year term insurance plan for the required additional cover amount as an add-on/attachment/endorsement to the basic endowment policy such that both policies run together. In case of the person’s death during this 10 year term his beneficiaries would get the sum assured under both the basic endowment policy as well as the add-on term insurance policy.

E-term Insurance: Of late, several insurers have started offering pure term insurance policies online or ‘e-Term Insurance’ at very reasonable rates. Policies sold online are cheaper because agent commissions get cut out.

High Life Insurance Amount: Term insurance plans provide a high life insurance amount. For example, if your annual income is ₹ 10 lakh, then you can take a Life Cover of up to ₹ 1 crore.

Affordable Premiums: With Term Insurance plans, a large amount of Life Cover comes at a small premium. For instance, you can get a Life Cover of ₹ 1 crore at a premium of just ₹ 17 per day^.

Tax Benefits: Term Insurance plans offer tax benefits** on premiums paid up to ₹ 1.5 lakh under Section 80C. New-age Term plans with critical illness cover also offer additional tax benefits on premiums paid up to ₹ 25,000 under Section 80D. You also get tax benefits** under Section 10(10D) on the money that your family receives in case of an unfortunate event.

Cover Against Critical Illnesses: Besides protecting your family in your absence, new-age Term Insurance plans like iProtect Smart also provide cover against critical illnesses. By paying a small amount of additional premium, you can get a lump sum pay-out on first diagnosis of a critical illness like heart attack, cancer, kidney failure, etc.

Support In Case Of Disability: In new-age Term Insurance plans such as iProtect Smart, the insurance company pays your future premiums in case of total and permanent disability*. This ensures that the protection of the Life Cover continues, even when you are unable to pay the premiums.

Additional Security: To increase the security of your family, a Term Insurance Plan provides double pay-out (up to ₹ 2 crore) in case of an accidental death. For example, if your Life Cover is ₹ 1 crore, a Term Insurance plan with Accident Cover pays ₹ 2 crore to your family in case of an accidental death.*