YOUR OPTIONS Covertible term plans on offer: Insurer/policy name
Features
Premium* (Rs)
Kotak Life Kotak Preferred Term Plan
You can convert this plan to any other insurance plan offered by the company before five years from the maturity date
10,809**
Future Generali Future Care Max New York Life Five-year renewable and convertible term plan
20,550 You can convert the term plan to any other insurance policy, except a term policy, within five years
24,350***
*For a 30-year-old for a term of 20 years and a sum assured of Rs50 lakh; **Only meant for women and non-smoking men; ***This plan is available for five years only after which it can either be renewed as a term plan or converted to another policy
Here are the various types of term plans on offer: Cover
Basic term plan Term plan with return of premium Decreasing term plan Increasing term plan Convertible term plan
Premium# (Rs)
What is it? You get insurance cover but no returns at the end of the term
When you need it? You have financial dependants and you want to buy the cheapest insurance
You get a cover as well as some returns at the end of the term. This is more expensive
If you find it difficult to part with a certain sum towards insurance cost
Your cover keeps going down over a period of time with decreasing liability
Excellent if you have taken a loan. Also, if you build enough assets over time, you may find that your insurance needs going down
Your cover keeps going up as years go by to cover increasing liabilities
If you can’t do without a cover even later and may even need to bump it up, but don’t want to undergo medical tests then
13,622
You get a term plan that you can convert into For young investors, who need a cover now, but as their income grows, may want an investment policy later, without fresh tests an investment-cum-insurance policy later
20,550
#For a 30-year-old for a term of 20 years and a sum assured of Rs50 lakh
9,817 49,556 8,714
Source: Mint research