Term life insurance plans have gained importance globally due to the increasing uncertain events and the resulting financial crisis. The recent Covid-19 pandemic is a perfect scenario in this regard. People lost their family members and ended up with unexpected financial burdens.

A term insurance plan is one of the best and simplest ways to secure your family's financial needs. Let us go ahead and understand what a Gerber term life insurance is and what are the different types of term insurance plans.

What is a term insurance plan?

What is a term insurance plan?

A term insurance plan is a pure life insurance plan wherein the insurer provides a sum assured to the nominee in case of your sudden and unexpected demise during the policy term. It is provided against the regular premium amounts paid throughout the policy duration. There are different types of term insurance plans based on the premium amount.

Types of term plan

Types of term plan

Based on your income and financial needs at different stages in life, you can choose the best term plan.

1. Level Term Insurance -

In a level-term insurance plan, the premium amount to be paid remains throughout the policy. The sum assured does not change as well. The premium amount and the sum assured are decided during the policy inception. It is an ideal plan for you if you have a consistent and assured income from your employment for a long period.

Also, if you are not certain about the future financial commitments, it is best to go with the level term plan as it remains unchanged and does not affect your financial plan in any way.

2. Increasing Term Insurance -

In an increasing term plan, the premium remains constant while the sum assured keeps increasing to a considerable extent. There is a pre-defined level to which the sum assured will increase and be available for payment. It is a suitable plan for you if you have plans to increase your standard of living and would like to secure it, accounting for the inflation rates.

The cost of increasing the term insurance plan is slightly higher due to this reason. It is also an important plan if you have many family commitments such as children's education, marriage, etc., and are completely dependent on your income.

3. Decreasing Term Insurance -

In a decreasing term insurance plan, the sum assured keeps decreasing to a certain level. It is suitable for you if your liabilities keep decreasing during the policy term due to repayment and that there are not many debts to be cleared off in the future by your dependents.

It is also the best plan if your spouse and children start earning to contribute to the family financial commitments and take up future responsibilities.

4. Term Plan with Return of Premium -

In a term plan with the return of premium option, the premium amounts paid will be refunded by the insurer if you survive the policy term. The sum assured remains unchanged and will be provided to the nominee in case of your unexpected death.

Before you plan to get online term insurance, it is good to analyze your financial status and commitments in the future to make the best choice. TATA AIA term insurance plan is highly competitive for its features and extremely reliable for a long-term investment.


Term insurance plans are significant if your family is dependent on your income for their financial needs. It is an ultimate necessity if you are the sole earning member. Evaluate your needs and plan to buy a term plan online at a younger age to assure maximum protection for your family.

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Arina Smith

I enjoy writing and I write quality guest posts on topics of my interest and passion. I have been doing this since my college days. My special interests are in health, fitness, food and following the latest trends in these areas. I am an editor at OnlineNewsBuzz.

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