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Making an Informed Decision: With Term Insurance, Saving Money Is Easy

If you’ve been looking into purchasing life insurance lately, then the chances are that you’ve discovered the somewhat overwhelming variety of life insurance plans out there, which of course makes it incredibly difficult to decide which one you want.

However, today we’re going to be taking back to the basics where we’ll be exploring the ins and outs of a term life insurance policy. Any questions you may have had on term insurance will be answered today, clarifying this is the type of insurance policy you’ve been looking for.

This will help you save money in the long-term, enabling you to find the best-suited policy for you and your family.

What is a Term Policy?

Let’s start with the basics. There are multiple types of term insurance plans out there for you to choose from, many of which we’ll explore here.

Decreasing Term

This is perhaps the most popular type of term life insurance, but it’s also the most basic. With this term, you can make sure that your mortgage is paid off if you pass away prematurely before it’s paid off. This keeps the mortgage company happy and your family out of debt.

As the title suggests, these policies decrease in payment value each year as your mortgage decreases. This is the most inexpensive form of life insurance.

Increase Premium

On the other hand, an increasing premium term insurance policy will initially start off as the most affordable kind of policy available, which is great for people starting out, but the premium will increase every year, and will actually turn into one of the most expensive long-term.

If you do choose to opt for this plan, make sure you convert it into a level plan as quickly as possible to save costs.

5-Year Level Term

This is perhaps the most beneficial life insurance plan out of the three. With this policy, the premium and the cost will remain level for five years. If you pass away during this time, the payout will be in income form, or as a lump sum.

If you need a short-term policy, perhaps to cover a loan, this can be ideal.

What Other Term Insurance Policies Are There?

While the policies offered by your broker may vary in name, all term policies will revolve around this format. For example, there are 10, 15 and 20-year level terms plan available which are identical to the 5-year level term plan, except they go on for a longer amount of time.

Unfortunately, as we mentioned above, the term insurance plans are the most basic type of plan, and you won’t be able to make any money as you would with a ULIPs plan, or customize your plan to suit your personal situation or requirements.


As you can see, there are lots of different types of term insurance plans out there to choose from, but it’s important to remember that flexibility is slim. However, if you’re looking for a basic plan with no-frills attached, one of these policies could be ideal for you.

About Aegon Life:

Aegon Life Insurance Company Limited launched its pan-India operations in July 2008 with a vision to be the most recommended new age life insurance Company. Aegon is one of the world’s leading financial services organizations (providing life insurance, pension plans, and asset management) and Bennett, Coleman & Company (India’s leading media conglomerate) have come together to launch Aegon Life Insurance. This joint venture adopts a local approach with the power of global expertise to facilitate a direct to customer approach, leveraging digital platforms to bring transparent solutions to customers and to prioritize their needs.

FYI:  I worked at a dead end cubicle job from 2005-2011 for about $30,000 per year.  I went self-employed in July 2011 and make between $70,000-$90,000 through blogging, professional pet sitting, hubby's reffing, and our rental home.  If you’d like to start your own site (link to my free step-by-step guide), I highly suggest checking out Bluehost (my referral link with a nice discount for you, PLUS a free custom header banner from me!).  Please contact me any time at budgetingfunstuff*at*gmail*dot*com with questions or just to brainstorm! I’d love to help!
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