• About Us
  • Our Partners
  • Become an Advisor
  • NRI
  • QROPS
  • Careers
  • Alumni Portal
  • Public Disclosures
Select a language English
  • Pay Premium
  • COVID-19
    Assistance
    Covid-19 Crisis
  • Our
    Products
    • Protection Plans
    • Savings & Investments
    • Retirement & Pension
    • Group Business
    • QROPS
    Covid-19 Crisis
  • Our
    Funds
    • Fund Fact Sheet
    • Market Review
    • Check NAV
    • Market Highlights
    • Annual Fund Review 2019-20
    • Covid-19 Crisis
  • Knowledge
    Center
    • Blogs and Articles
      Term Insurance early bird offer

      With Term Insurance - It pays to be an early bird

      View All

    • Video library
      keep your family secured

      60 seconds is all it takes to keep your family secured!

      View All

    • FAQ

      What is the claims process at Exide Life Insurance?

      View All

  • Planning
    Tools
    • Calculate How Much
      Life Cover You Need
    • Risk Analyser
      Life Insurance
    • Child Education Planner
      Number
    • Know Your Retirement
      Number
    • Investment
      Calculator
  • Customer
    Service
    • Premium Payment Options
    • Self Service
    • Instant Sign up for Direct Debit
    • All Claims
    • Download Center
    • Term Insurance early bird offer

      Track your Application

    • Term Insurance early bird offer

      Track your
      Claim

    • Track your Service Request

Eng
Pay Premium
  • Our Products
  • Our Funds
  • Knowledge Center
  • Planning Tools
  • Customer Service
  • About Us
  • Our Partners
  • Become An Advisor
  • NRI
  • QROPS
  • Careers
  • Alumni Portal
  • Public Disclosures
  • Share via:
    • Home/
    • Our Funds /
    • Knowledge Center/
    • Blogs and Articles/
    • How many variants of term insurance plan you know about
  • Categories:
  • Term Plan
  • Health Plan
  • Savings and Investments
  • Retirement
  • Tax Planning
  • Services
  • All

How many variants of term insurance plan you know about?

Term Plan
Likes
Shares
    • A term  insurance is the simplest form of life insurance that offers a large cover at a low premium
    • There are various types of term  insurance plans available. Some even with a return of premium option
    • Pure Term Plan, Return of Premium Plan, Increasing, and Decreasing Term Plans are all variants of term insurance
    • Choosing the right term plan depends on your financial goals and liabilities
    MAR_DI_188

    Affordable, easy to understand, and providing a large cover at nominal premiums, term life insurance is the simplest form of life insurance policies available in the market. A term life insurance is a protection plan that provides financial security to your family when you are not there.

    Beyond the basic pure term life insurance, there are several variants that meet different needs. Read on to know them and select the one that best suits your needs.

    • Pure Term Plan

      Pure term plan is the simplest among all term  insurance products. It provides a fixed sum assured to the beneficiary/ nominee in case of the policyholder’s demise within the policy period. However, if you survive the policy period, there are no financial benefits. In other words, pure term plans offer only death benefit.

      The premiums for such plans depend on your age, sum assured, lifestyle habits, and policy term among others. You can avail additional discounts on premiums by purchasing these plans online.

    • Return of Premium Plan

      Generally, term plans don’t offer any maturity benefits. However, for those who look for pay-outs at the end of the term, life insurance companies offer variants called the return of premium  plans.

      As the name suggests, these plans return the premiums paid for the policy in case you survive the policy term. The table below illustrates the same for a 30-year old, non-smoking male, buying Exide Life Smart Term Plan(Classic variant) for 30 year policy period.

    • Plan

      Sum Assured

      Policy Period

      Annual Premium

      Total Premium Paid

      Did the life assured survive the policy term?

      Amount Received

      Exide Life Smart Term Plan:

      ₹ 50 lakh

      30 years

      ₹ 11,038 (excluding GST)

      ₹ 3,31,140 (including tax)

      Yes

      ₹ 3,31,140 (maturity benefit – Provided to the policyholder)

      No

      ₹ 50 lakh (death benefit – provided to the family)

      These plans are slightly more expensive than pure term plans as they return the premium.

    • Increasing Cover Term Plan

      It’s no secret that inflation decreases the value of money. Hence, in the future, the life insurance cover you buy today might not be sufficient to take care of the needs of your dependents several years down the line.

      Increasing cover term plans help you to hedge against inflation and beat the extra expenses en route. In this type of plan, the sum assured increases every year by a certain percentage. The increment stops after a maximum limit is reached.

    • Decreasing Term Plan

      Opposite to an increasing term plan, a decreasing term policy reduces the sum assured every year. The idea behind this policy is to address your different needs at various stages of life.

      In your 30s and 40s, you need a policy to insure your children’s education, cover loans and other expenses. When you are nearing retirement, most of your liabilities are taken care of and you need a cover to insure your partner. You can contemplate this policy if you are serving a decreasing fixed term loan.

    Choosing the Right Plan

    Term plans are available in various forms. Choosing the right plan requires meticulous thinking and gauging your financial goals and needs. A term life insurance is your family’s best friend to sail through tough times and address financial constraints in your absence.

    Exide Life Insurance offers you affordable term plans to secure the financial future of your family and take care of their needs in hour of distress. Get in touch with us to know more about our offerings. 

    Related Articles

    Term Plans Have Gotten Smarter

    Your family would be very special to you. They make your life joyful an..

    Term Plan

    Have you heard about term insurance plans that return your premium?

    Return of premium plans are new-age term policies

    Term Plan

    Are You An IT Professional? Here’s Why You Need Term Life Insurance

    Term insurance adequately covers the needs of the professionals in the ..

    Term Plan

    You may also like this

    Term Insurance

    Life Insurance Products

    A Life Insurance Policy creates the foundation for your financial planning.

    Read More
    • Key Links

    • Buy Online
    • Buy Term Insurance
    • Buy Zero Cost Term Insurance
    • Buy Smart Term Edge
    • Buy Heart & Cancer Insurance
    • Buy Single Premium ULIP Plan
    • Buy Investment with Insurance Plan
    • Buy Savings cum Insurance Plan
    • Buy 5 Pay Savings Plan
    • Get a Quick Quote
    • Term Plan Calculator
    • Financial Calculator
    • Have Queries?
    • To Buy Policy Online : 1800 419 0808
    • For Policy Servicing : 1800 419 8228
    • Write to Us
    • Life Insurance Plans
    • Smart Term Pro
    • Smart Term Edge
    • Term Insurance Comparison
    • Critical Illness Insurance
    • Term Riders
    • Retirement & Pensions
    • QROPS
    • Health Insurance
    • Critical Illness Rider
    • Group Insurance Scheme
    • Group Insurance Policy
    • Group Term Life Insurance
    • Group Gratuity Scheme
    • Group Critical Illness Insurance
    • Employees Deposit Linked Insurance
    • Investment Options
    • Endowment Plans
    • Endowment Assurance Plan
    • Secured Income Insurance Plan
    • Long Term Investment
    • Tax Savings Investments
    • Single Premium ULIP Plan
    • Child Plans
    • Child Investment Plans
    • Customer Service
    • Track your Application
    • Track your Service Request
    • Claims
    • Claim Forms
    • Track your Claim
    • Check Unclaimed Amount
    • About Us
    • Management Team
    • Media Centre
    • Awards and Recognition
    • Corporate Social Responsibility
    • Forms
    • My Money Book
    • FAQs
    • Term Insurance FAQs
    • Online Term Insurance FAQs
    • Life Insurance FAQs
    • Retirement & Pension FAQs
    • Child Plans FAQs
    • Savings and Investments FAQs
    • Blogs and Articles
    • Video Library
    • Security Tips
    • Privacy Policy
    • Tax Center
    • Withdrawn Products
    • Sales Illustrator
    • My Connect
    • About E-insurance
    • Terms of Use
    • New Business Premium
    • IRDAI
    • policyholder.gov.in
    • Member of the Life Insurance Council
    • IRDAI IGMS
    • Modification in NAV Computation
    • Grievance Redressal
    • Disclaimer
    • DNC (Do Not Call)
    • Intellectual Property Rights
    • Phishing
    • API & Development

    IRDAI notice : Beware of Spurious/ Fraud Phone Calls: IRDAI is not involved in activities like selling insurance policies, announcing bonus or investment of premiums. Public receiving such phone calls are requested to lodge a police complaint.

    Exide Life Insurance Company Limited.
    IRDAI Registration Number: 114, CIN:U66010KA2000PLC028273
    Registered Office: 3rd Floor, JP Techno Park, No. 3/1, Millers Road, Bangalore- 560 001, India.
    2020 Exide Life Insurance Company Limited. All rights reserved.

    • IRDAI Public Notice on Spurious Calls
    • Sitemap
    • FAQ
    • © 2020 Exide Life Insurance Company Limited
    loading

    Please rotate your screen for
    optimal experience

      • Share via:
    Buy Online :
    • Smart Term Edge
    • Single Premium ULIP
    • Locate a Branch
    • Service Queries
    • Speak to our Expert
    • Smart Term Edge
    • Single Premium ULIP
    • Locate
    • Speak to our Expert
    • Buy

    Have Us Call You

    Disclaimer


    By submitting your contact details (Telephone number), you authorize Exide Life Insurance and/or its authorized service provider to verify the above information and/or contact you in relation to the insurance products sold by Exide Life insurance even if this telephone number is presently or subsequently registered on the Provider. Do Not Call/Do Not Disturb Register or the National Do Not Call Register.

    Please enter first name
    Please enter a valid Birth date
    Please enter a valid email id
    Please enter mobile number Please enter valid number
    Please select gender
    Please select state
    Please select city
    Please select best date to call
    Please select best time to call
    Please select Preferred purchase mode
    Please select Where did you find about us
    Disclaimer Disclaimer
    Generate OTP Reset

    *Clicking on Generate OTP will send a One Time Password to the entered Mobile Number. Please use this password for verification

    Enter the OTP which was sent to your number

    Please enter OTP Please enter correct OTP or Regenerate OTP Your OTP has expired. Please Regenerate OTP.
    Submit Please wait Re-generate OTP
    You have exceeded the number of times an OTP can be generated, request you to please try after sometime.
    OTP Regenerated. Please enter the new OTP
    *The OTP will be valid only for the next 15 minutes. In case, if you have not received the OTP, click on Regenerate OTP.

    Have Us Call You

    Verification Successful

    Thank you for visiting our website and showing interest in Exide Life Insurance. Our representative will get in touch with you shortly.

     

    Back To Home