The Evolution of Term Insurance Plans: What's New in 2024
Are you also looking for a term insurance policy for yourself? Being insured is very important for you and your family. Insurance policies financially secure them in case of any unexpected events. In such cases, having an insurance plan will give you peace of mind.
With so many changes happening in the world, term plans have also had a makeover. You will be surprised to know that they have evolved to offer more flexible and personalised coverage offers. Let’s see how term insurance plans have been ever-evolving, and help you find something that works for you perfectly.
Types of Term Insurance Plans
There are many types of term plans. Here’s an overview of them to see which one fits your requirements the most:
| Term Insurance Type | Description | Benefits |
| Standard Term Insurance Plan | This term insurance plan requires you to pay a fixed sum regularly for a period of time, and it covers a specific life cover until you reach retirement age. | It offers affordable coverage and is good for securing dependents' immediate needs. |
| Term Insurance with Return of Premium | The total premiums are paid back on the successful completion of policy terms. | It guarantees a return on investment if a claim is not made but typically comes with higher premiums. |
| Increasing Term Insurance | The sum assured increases at predetermined intervals throughout the policy term. | The coverage automatically adjusts for inflation, ensuring beneficiaries receive a payout that is relevant.. |
| Convertible Term Insurance Plan | Allows converting the term plan into a whole life insurance plan during a specific window within the policy term. | Offers the flexibility to switch to a cash value accumulation plan. |
| Whole Life Insurance | Lifetime coverage with a death benefit and a cash value component. | Typically more expensive than term insurance. |
| Joint Term Insurance | This term insurance plan usually covers two people. | It pays a death benefit if either insured person passes away within the policy term. |
| Term Insurance with Return of Premium | Pays back the total premiums paid on successful completion of the policy term. | Guarantees a return on investment if no claim is made, but typically comes with higher premiums. |
Term Insurance Trends to Look Out For
There are many trends you should look out for in 2024 as they are setting the stage for the best term insurance plan. Here are a few mentioned below:
- Using Digital Platforms: Are you stressed about visiting an insurance company office and wasting your time going over term insurance plans? Those days are gone when one had to visit different offices to compare, find, and apply for the insurance plan they wanted. Now, these platforms are easy to access, with payment getaways and claim submissions all at your fingertips.
- AI-Driven Customer Experience: Businesses that use artificial intelligence are leading the way with digital transformation, and insurance companies are not far behind. These technologies enable insurance providers to provide personalised services and also improve customer service.
- Enhanced Security: Life insurance companies have now adopted blockchain technology to safeguard your data from malware and external threats. Moreover, it also increases security and reduces term insurance scams. In the current scenario, where an increasing number of people fall victim to online scams, it assures policyholders that their data is safe.
- Telematics and Wearable Technology: This technology helps track your health data by insurance companies. By monitoring this data, they are able to provide more accurate personalised premium rates for term insurance plans.
A lot of times for agreeing to share their health data, policyholders receive incentives for achieving certain health goals, such as maintaining a consistent sleep pattern or finishing daily walking steps. This technology not only promotes healthier lifestyles but also allows for more dynamic pricing models.
Insure Your Future
2024 has introduced a variety of new trends, and purchasing a term insurance plan has become even more essential. You can now opt for evolved term insurance plans with accelerated death benefits with the ease of digital platforms.
A trustworthy insurer like Canara HSBC Life Insurance can help you with all the new and evolved term insurance plans. Finding the best term plan for you should not be a very hard task. Visit their official website and say goodbye to your worries!
Disclaimer: This article is part of sponsored content programme. The Tribune is not responsible for the content including the data in the text and has no role in its selection.
