iStock1. It is a type of term insurance where one can increase the policy cover by a certain amount every year.
2. For example, for a policy of Rs 1 crore purchased for 30 years, the sum assured incrementally increases by a pre-decided amount every year.
3. At the end of 20 years, if something were to happen to the insured, the beneficiary will receive an amount that increased incrementally over the last 20 years.
4. Incremental term insurance helps beat inflation and ensures that the beneficiary has adequate funds in case of an untoward event.
5. Premium is higher as compared to regular term insurance.
(Content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)
2. For example, for a policy of Rs 1 crore purchased for 30 years, the sum assured incrementally increases by a pre-decided amount every year.
3. At the end of 20 years, if something were to happen to the insured, the beneficiary will receive an amount that increased incrementally over the last 20 years.
4. Incremental term insurance helps beat inflation and ensures that the beneficiary has adequate funds in case of an untoward event.
5. Premium is higher as compared to regular term insurance.
(Content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
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