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Regular term plan or smart term plan? Which one should you choose?

Insurance for women

An insurance plan offers financial protection in the form of a sum assured to your family members if something unexpected happens. Most insurance plans offer a variety of solutions tailored to fit a variety of situations. Currently, there are several term insurance plans available in the market. This creates a lot of confusion in terms of selection of the insurance company and then the specific term plan policy. When you are planning to buy a term insurance plan, you should look for a policy that offers you comprehensive coverage, and offers multiple benefits. You should also be aware of the importance of an insurance key features and term insurance benefits before getting one for yourself.

What is Term Insurance?

A regular term insurance plan is a basic old fashioned plan that offers protection, provides death benefit or financial coverage to the nominee in case of an untimely death of the policyholder during the policy term. In regular term plans, the policy period usually ranges up to 85 years of age with no payout, even if the policyholder outlives the policy period. If invested on your own, a regular insurance plan can generate more returns. 

What is a Smart Term Plan?

Smart Term Plan is customizable term insurance plan that fits provide overall financial protection to your family in your absence. The term insurance plan not only provides you with death benefits but also gives you comprehensive coverage.

Which term plan should you choose?

  • Premium return on maturity

With a Smart Term Plan, you have an option of return of premium. In other words, if you survive throughout your policy term, you will get access to the total amount of premium that you have been paying all these years, and only after that, your policy will be terminated.

  • Choice of multiple premium payment options

By availing a smart term plan, you have an option of how and when you want to pay your insurance premiums. You can choose your options at the time of purchase. This makes it easier for you to look after your other expenses also.

  • Financial protection against critical illness and accidents

A critical illness rider attached with your term insurance policy provides additional benefits i.e. if you get diagnosed with an illness covered under the policy, a lump sum amount is paid to you to avoid any financial setback in paying the medical expenses. A smart term plan is a flexible insurance plan that covers all your requirements in emergency situations. For example, if you are diagnosed with any critical illness, a smart term plan can help you avail immediate financial help in the form of accelerated payouts.

  • Life stages benefits

Your life insurance plan should be flexible that can evolve with changing life stages and goals. With an online term plan, you get the option of choosing the ‘Life Stage Add on Sum Assured’ benefit. As a policyholder, you will get to increase your total coverage amount under this plan on reaching an important milestone event like marriage or buying a house loan.

  • Death benefit variant

The term insurance plans rider provides extended financial protection to your family by also covering you for accidental dismemberment and death. With a smart term plan, you get complete freedom in deciding how your loved ones will get the insurance money after your untimely demise. You can choose whether you want to increase the monthly payouts at a specific time to counter the rise in inflation or increase insurance coverage on achieving important milestones in your life.

It is best to get a term insurance plan that is flexible and can evolve with you. So, for additional benefits, you can opt for a smart term plan with a reputed insurance company and live your life tension free.

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