Life insurance in its nascent is known term insurance . The every very name implies that the coverage is for a limited and specific time. A term insurance contract could be structured for any period. Generally from the point of view of underwriting , the term varies from five years to twenty years. However Assured Life Time, a term insurance product of TATA -AIG is a available fro a term of one year and has certain attractive options like conversations of the plan to a savings plan and renewal of one and five year plans without any medical test etc., Under a term insurance contract, the sum assured becomes payable only if death occurs during the selected term, and nothing becomes payable once the term expires. Wherever the contract envisages a renewal of the contractor for a stipulated period after the expiry of the original contract such a policy is called Renewable Term insurance policy.
Some term insurance contractors offer a conversion clause by which the assured can experience an option of the to convert the term into a permanent assurance plan without plan any further medical examinations . LIC, Max New York Life Tata AIG are a few examples,. Until recently term insurance contractors were not popular in India. The first branded term insurance plan Bima sandesh with return of premium provision had a slow death for want to of proper positioning , . With the opening up of the industry, the concept of the term assurance plans received a shot in the term arm and many companies like ICICI prudential Life, Birla Sun Life, and LIC market such term assurance plans as a assurances with Return of premium (ROP). With the opening up to the industry to private players, the concept of the �Term� is getting promoted . Now private companies alongside, LIC, market such plans , and the price war is hotting up in this product class. For the first time among private insurers in the Indian market , Max NEW YORK LIFE came out the with a LEVEL Term Plan with yearly and other mode options with the term extending to 20 year and 25 years. This was positioned as an attractive low-cost plan. Another innovative term insurance plan was a the KOTAK Preferred Term PLAN (KPTP), introduced by Kotak mahindra Old Mutual Life insurance company. His term assurance with a minimum sum assured of Rs. 10 lakhs is available for men in the group of 18-60 years , provided they do not tobacco in any form. If some one takes to smoking the after the conclusion of the contract the company may view it as a violation of the terms of contract and decide to decline the death claim, it if is established that the death has resulted as result of the policy holder taken to the tobacco smoking.
Bajaj Allianz Term Care offers life insurance cover at a low cost and provides for returns of premiums on maturity. The premium returned at a maturity amount the to the sum assured of the premium paid until maturity sans the extras, if any . In the event of the death of the assured, the sum promised is paid to the nominee of the legal heir. The plan has built in Accidental death Benefits and Accidental permanent Total/ Partial Disability Benefits subject to conditions .
This plan is marketed under economy, protect health the and total compacts with graded benefits. ING Vysya markets a term insurance plan with a critical illness rider and HDFC standard Life markets a loan protections cover. Life shield a term insurance plan offered by Aviva life insurance , LIC�s Jeevan Anmol, Shield, the term insurance plan of SBI Life Tata -AIG�s Life Plus, ICICI Pru�s Life Guard are some of the well known term insurance brands. A number of the variations are offered under these plans. Though a term insurance plan provides very high protections at a minimum cost, it should be noted that it is only temporary protection and cannot offer the type of the security that a permanent insurance cover can. It should also be noted that if they a person aged 30 , considered the cost advantage and takes only a term Assurance for a period of 30 years and if he/she survives the term on reaching the elderly age of 60, he/she is left high and dry without any insurance proceeds to fall back on. Even in the US, where the dictum buy term and invest the rest was once popular , public outlook is changing in preference to comprehensive plans.
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