Executive Summary: The sum assured in an increasing term insurance plan can be periodically increased during the policy term. The premium also increases appropriately. We have compared two policies – SBI Life Smart Shield and Birla Sun Life Protector Plus Plan that provide increasing term insurance.
An increasing term life insurance plan is an insurance policy in which the sum assured can be increased by a specific amount each year.
It caters to the requirements based on the premise that cost of living changes, our lifestyle changes and inflation increases the financial requirements over the years.
The premium of course will increase accordingly each year.
It caters to the requirements based on the premise that cost of living changes, our lifestyle changes and inflation increases the financial requirements over the years.
The premium of course will increase accordingly each year.
Many companies offer increasing term insurance plans. Let us compare two of them –
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Details
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SBI Life Smart Shield
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Birla Sun Life Protector Plus Plan- Increasing Sum Assured
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Eligibility
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Minimum Age To Take Policy– 18 years
Maximum Age To Take Policy – 65 years |
Minimum Age To Take Policy– 18 years
Maximum Age To Take Policy – 65 years |
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Key Features and Benefits
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– 5% increase in the sum assured at the beginning of the year.
– Minimum Sum Assured – Rs. 25,00,000 – Maximum Sum Assured – No Limit – Different tenures for premium payable allowed. – Policy can be reinstated within 3 years from date of first unpaid premium as per policy terms and by paying due premium. – Multiple riders available. – Discount available on huge sum assured amounts. – Premium can be considered for deduction under Section 80C of Income Tax Act. |
– 5% or 10% increase in the sum assured on a yearly basis.
– Minimum Sum Assured – Rs. 5,00,000 – Maximum Sum Assured – Rs. 50,00,000 – Different tenures for premium payable allowed. – Policy can be reinstated within 2 years from date of first unpaid premium as per policy terms and by paying due premium. – Multiple riders available. – Premium payable for women is discounted. – Premium can be considered for deduction under Section 80C of Income Tax Act. |
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Premium for Male aged 30 years and cover of Rs. 1,00,00,000 for 30 years.
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Rs. 21,195 (excluding taxes) per annum.
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Rs. 38,000 p.a. (excluding taxes)
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Exclusions
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Death by suicide in the first policy year, or within one year from the date of reinstatement will not be considered for claim.
Loan, Surrender value etc. is not offered. |
Premium paid only will be refunded in case of death by suicide in the first policy year, or within one year from the date of reinstatement. No claim can be made.
Loan, Surrender value etc. is not offered. |
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Link
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Visit this link for more details.
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Visit this link for more details.
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An incremental term insurance plan offers the advantage of hedging against inflation. The value of the policy remains more or less intact. The premium payable also increases but if you are earning income, it usually is on an upward curve. When you are younger and have no liability or zero dependents, you may not want a huge sum assured. But as you grow older, your liabilities may increase and you may have dependents. In this case, such a plan is useful as you can continue with the same plan but with increased sum assured. On the other hand, if you have a spouse who earns well and you have a big corpus, you could skip this option.
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