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What is Level Term Insurance?

As customers when it comes to buying a life insurance policy, there are endless options available in the market. From term plans to unit-linked plans and from money back to return of premium plans, the options seem never-ending. However, one of the most common forms of life insurance policy has always been term plans. Entirely protection based, these plans have no risk of investment involved for the customer. Such policies usually have a time period assigned to them, also known as the “term” of the plan. In case the policyholder or the insured dies during this term, the nominees listed on the insurance policy are paid the sum assured of the policy. Most term insurance policies do not offer any benefit upon maturity. This means that if the policyholder survives the entire tenure of the policy the policyholder/nominee receives no benefits. Due to the same, term plans are usually the cheapest life insurance policies available to customers.

What is a term life insurance policy?

As mentioned above term life insurance policies are purely protection based plans. This means that the policyholder only receives a sum assured or death benefit in case of the death of the policyholder. If the policyholder survives the entire tenure of the policy, the nominee or policyholder do not receive any maturity benefit of the same. The reason term plans are so popular amongst consumers is as they do not have any maturity benefits they charge a lower rate of premium as compared to other life insurance policies. This means that you can have the peace of mind of securing the financial future of your family without burning a hole in your monthly budget with exponential premium payments.

What is a level term life insurance policy?

One of the most common and basic forms of term life insurance available to customers are level term plans. Under such a plan, the sum assured of your policy (life cover) and the premium as well as any other benefits will remain the same during the entire tenure of the policy. The premium of such a plan is usually determined by your bank or financial institution on the basis of your needs and liabilities. Almost all banks and financial institutions offer level term plans for their customers. Unlike decreasing or increasing term plans, the sum assured and premium offered under level term insurance stays the same during the entire tenure of the policy.

For instance, the Express Term Life Plan is a pure non-linked and non-participating term life insurance plan. The plan has a death sum assured which will be paid as a lump sum either in the case of death or the diagnosis of a terminal illness. In addition to this, it also has an additional life cover option whereby you get a lump sum benefit on death or the diagnosis of a terminal illness. Additionally, in case of accidental total and permanent disability, all future premiums of the policy are also waived off. In this plan, you get the flexibility to choose the period of protection and the period of premium payment. You also have the option of returning the policy to the company within 15 days of purchase in case you disagree with any terms or conditions.

Why should you opt for level term life insurance?

Level term life insurance pays a set amount that can be used by your dependents to pay for any financial obligations. A level term life insurance payout can help your loved ones and family members to cover any day to day expenses, current educational fees, loans/mortgage payments or any other form of money you may owe.  Most level term plans also allow you to add on additional riders or covers such as critical illness protection, thereby, helping you provide more coverage to your loved ones. When you survey the insurance market while looking for a new life insurance policy, the overwhelming amount of options and coverage available can be very difficult to understand and comprehend. Level term insurance plans are simple to understand protection based plans, which enable you to secure your family’s financial future without burning a hole in your wallet with premium payments. There are no hidden charges and schemes and they offer you complete peace of mind about your family’s financial future protection.

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