Site icon Jagoinvestor

Increasing Term Insurance : Is it a better option?

Hi,
I’m 25, looking for a good Term insurance plan. While searching I came across the “Increasing Term Insurance” type that increases the SA by some percentage.

I’ve zeroed in on the following options :
SBI : 40 lacs @5% = 11353 rs
SBI : 50 lacs @5% = 13198 rs
Birla : 40 lacs @10% = 13291 rs

I beleive Birla will be the best for me. At 10%, it beats inflation, and increases the cover amount substantially.

Questions :

1. Does Increasing term insurance make sense? are then any disadvantages that I may be overlooking?

2. Does the Birla Plan above look good?

Appreciate your help. Thanks

Exit mobile version