Unlike permanent life insurance, term insurance refers to life insurance that offers your family financial protection for the specified period in the policy in case of your death. If you die within the policy’s specified time, your family earns the full benefits, but if you survive, there is no benefit paid; however, you can choose to renew the insurance plan depending on the type.

For you to choose the best term insurance plan, you need to have an insight into the different types of best term insurance plans. They include:

Level term plan

With the level term plan, the premium amount paid every month is fixed and does not change during the specified period of the term insurance. When the policyholder passes away during the insurance tenure, his/her family receives the full benefits of the insurance. A level term plan is the most common and best term insurance plan type.

Increasing term plan

The increasing term plan allows you to increase your death benefit every year. You start with the agreed annual amount early in life partly because you have many expenses and bills to sort when you are younger. However, as time goes on, you increase the amount assured on an annual basis while keeping the premium the same. With this, you don’t have to qualify for another insurance policy when you get older.

Convertible term plan

It allows you to convert the term insurance into permanent life insurance or endowment plan or any other plan you wish after a couple of years. For instance, if you had agreed on a term plan for a period of 10years, but after 5years you change your mind, you can convert it to any plan. Only some companies offer this type of best term insurance plan, and no medical examination applies when converting the insurance.

Decreasing term plan

As the term sounds, this type of insurance plan decreases as time goes by. Most of the people who use this insurance term plan have mortgages and believe that as you reduce your mortgage, the need for a term insurance decreases. The objective is to align the decline of the term insurance benefit to the declining mortgage debt. But, the premium remains the same amount even as the benefit declines.

Return of premium plan

With the return of the premium plan, the premium has a maturity benefit. You pay the premium for the agreed period, but if as a policyholder you survive the policy term until maturation, the insurance company gives you back the premiums.

Annual renewable term plan

The annual renewable term plan involves renewing the term insurance premium for a higher premium annually as you turn a year older. It guarantees you an increased insurance benefit each year, but you have to be ready for the annual increase in costs.

Term plan with a rider

It comes accompanied by rider options such as severe illness cover, accidental death cover, or disability cover. You purchase this with the regular term plan; however, you have top up with a small premium amount. Suppose you take this and choose premium waiver benefit, in case of any eventualities for which you have taken the rider; then you won’t have to pay the future premiums.


Term insurance provides you with a cheap way of financially protecting your next of kin in death eventuality.

The role of the executor at is to ensure that the wishes of the deceased are carried out. The executor is responsible for carrying out the instructions in a will and ensuring that all assets are distributed according to the terms of the will.

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