Increasing term insurance offers the flexibility to increase the sum assured over time without the need to undergo medical underwriting (i.e., health checks or reassessment of medical history) again. This ensures continued financial coverage in alignment with increasing financial responsibilities. Read on to explore the term insurance benefits, plan features, cost analysis, and how to compare and buy term insurance smartly.
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Best Increasing Term Life Insurance Plans in India (2025)
Increasing term life insurance is a variant of term life insurance where the coverage amount (sum assured) increases annually by a fixed percentage or at specific intervals. This type of term insurance is ideal for individuals anticipating rising financial liabilities such as higher education costs, home loans, or general living expenses due to inflation.
Unlike traditional term insurance, where the coverage stays fixed, increasing term insurance ensures that your family gets a payout that reflects future costs, ensuring coverage that aligns more accurately with projected future expenses.
While policy specifics will vary, the following features are typically included in the best increasing term insurance in India:
| Feature | Description |
| Annual Increment | 5% – 10% on the base sum assured (usual range in India) |
| Policy Tenure | 10 to 40 years |
| Entry Age | 18 – 65 years (varies by insurer) |
| Riders Available | Critical illness, accidental death, and premium waiver |
| Tax Benefits | Premiums paid are eligible for deductions under Section 80C, and death benefits are exempt under Section 10(10D) of the Income Tax Act, 1961. |
When comparing increasing term life insurance policies, keep in mind the following points:
Consider choosing an increment rate that resembles your future financial commitment and inflation.
In most increasing term policies, premiums remain constant. You should also consider different premium payment options that fit your cash flow situation.
These riders provide additional financial coverage for various situations.
Select providers that have a strong and consistent review of claims settlement.
A seamless buying and servicing experience should be a priority.
Choosing an increasing cover offers numerous term insurance benefits:
Follow these simple practices to get maximum coverage, value, and peace of mind.
Buying young helps lock in lower premiums for high coverage.
The earlier you choose increasing cover, the more cumulative benefit you gain.
Conduct an annual review to update nominees, riders, and contact information.
Use official websites for quick insurance comparison and avoid intermediaries unless necessary.
Check the main policy document for exclusions, the free-look period, and what is needed to reinstate your policy.
An increasing term life insurance plan is structured to offer growing financial coverage aligned with your evolving life goals. If you start a family, buy a home, or make arrangements for your children's education, this type of term insurance can meet your needs. However, it’s important to check features, how much you have to spend, and how reliable they are as you study various increasing term life insurance plans in India. Given rising inflation and increasing financial obligations, buying a comprehensive term insurance plan with full coverage is wise.
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Reviewed by Vaibhav Kumar Kaushik 
Acko Technology & Services Private Limited
#36/5, Hustlehub One East, Somasandrapalya, 27th Main Rd, Sector 2, HSR Layout, Bengaluru, Karnataka 560102
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