Choosing the Best Increasing Term Life Insurance Policy

Rate of Increase in Sum Assured

Find out whether the amount of the sum assured goes up on an annual basis. A few policies give a 5–10% annual increment, but others give you the choice to pick the increment. Basically, your plan should reflect your own expectations and needs when it comes to income and expenses.

Premium Structure

Many people ask, “Does term insurance premium increase every year?”
The premium stays fixed in regular term plans. In increasing term plans, it depends on the policy. Most policies have fixed premiums even when coverage increases, while others raise the premium as the coverage grows, but this is relatively uncommon. Thus, it is important to check with the insurer to understand how the premium and coverage will evolve over time.

Policy Term and Entry Age

Do not overlook the policy's maximum term and minimum age requirements. Selecting a longer term is better for younger people, and buying the insurance when you are young ensures you pay a lower premium.

 Riders and Add-ons

Things like critical illness, accidental death benefit, and waiver of premium can be added as optional benefits. Though they require more money, they may be useful if they meet your needs.

Check the Claim Settlement Ratio of the Insurer

The claim settlement ratio (CSR) is one of the most important criteria when choosing the best increasing term life insurance policy. This figure shows how many claims the insurer has settled compared to how many it received in a financial year.

A high CSR (above 95%) is a sign that the insurer is reliable. For your peace of mind, choose a provider with the best settlement ratio in term insurance.