Life insurance is quintessential as it plays a significant role to provide for contingencies in one’s life. We buy life insurance plan for mostly two reasons – passing away prematurely while leaving a dependant family and for retiring without adequate means of funds. Analyzing the risks and determining the available means for mitigating them will help you in planning for your finances. It means thinking ahead to the life of one’s family when it is deprived of a regular monthly income. Ask yourself before you buy a life insurance: How long will your family need a financial support and in what amount? Term insurance plans are financial tools that ensure the security of your loved ones.
In order to buy the best term plan, we take an array of factors into consideration such as monthly income, outgoings, liabilities, and financial goals. And while choosing a term plan, you should go for an optimal level of sum assured to suit your requirements.
Let us discuss in detail about increasing term insurance plan and how it can help you protect your dreams against inflation.
What is an Increasing Term Insurance Plan?
An increasing term insurance plan is a term plan in which the sum assured chosen at the time of buying the plan increases by a specified amount with each passing year. This feature is designed to keep inflation in account. As we grow old, our responsibilities also increase. The cover that you may have chosen on plan commencement may not be adequate for you later, as income, expenditures and consequently liabilities grow over time. You should buy a comprehensive term insurance plan that offers features you can benefit from. iSelect Star Term Plan by Canara HSBC Oriental Bank of Commerce Life Insurance has the option of increasing sum assured.
How Increasing Sum Assured in a Term Plan can help you?
The feature of increasing sum assured allows you to increase your term insurance cover at regular frequencies. It will help you in managing the increasing expenses of your loved ones, which may also keep changing.
Listed below are the benefits of increasing your sum assured in a term plan:
- Effective against inflation
Inflation is the rate of increase in prices of goods and services over a given period of time. The rate of inflation keeps on increasing, and hence, it is essential to consider it while buying any financial instrument. Simply put, if you choose an increasing sum assured in a term plan, you can easily manage the extra expenses without breaking a sweat.
- Aligns with changing life stages
Bought a term insurance cover when you were a bachelor? And now that you are married, you are planning to protect your partner’s financial goals? With iSelect Star term plan, you can add your spouse to the same policy. With changing life stages, your needs and requirements will also change. Hence, an increasing sum assured term plan will help you stay on the right track to manage your finances.
- Affordable premiums
Even if you choose an increasing sum assured option in a term plan, the premiums will be low and affordable. The premiums will remain constant and will not burn a hole in your pocket. That means, even if you choose to increase the sum assured during the policy tenure, the premium amount will not increase.
If you are young and you don’t think you need to increase your sum assured right now, you can do that later as well. You are not required to go through the entire documentation process to increase the sum assured of your existing term plan. Buy a term life insurance plan today and be prepared for every twist in life.
Know more about iSelect Star Term Plan.