Secure Term Plans are ideal for any situation that requires protection on a tight budget, or business arrangements requiring protection with there being no need for an investment return. Term insurance is the cheapest way, in the short run, to buy a given amount of insurance death benefit on coverage. Compared to other life insurance policies, term is the most economical way for you to protect your loved ones.

Secure Term Plan guarantees to cover you over a fixed term whilst premiums are being paid, with a sum assured specified at the outset. A lump sum is paid out if your death occurs before the policy ends. Term Assurance will not provide you with a cash sum when the policy ends, or if you surrender your policy before the end of the term.

The Secure Decreasing Term Plan provides protection cover, which decreases uniformly, on an annual basis, throughout the term of the policy. The level of decreasing in protection cover will depend upon the amount of initial cover requested and the number of years for which the protection is required. In decreasing term the death benefit gets smaller.

For a 25 year plan with protection cover Rs. 500,000, the benefit payable in case of death during the first year of the plan would be Rs. 500,000. In the second year the benefit payable in case of death would be Rs. 480,000, in the third year Rs. 460,000 and so forth. In the twenty-fifth year the benefit payable would be Rs.20, 000, and at the end of the twenty-fifth year the plan will terminate. For a 25 year plan a regular annual premium is payable for the first 16 years only.

Much more common than annual renewable term insurance is insurance where the premium is the same for a given period of years. The term available for this plan is 10, 15 and 25 years. In this form, the premium paid each year is the same, and is the cost of each year's annual renewable term rates averaged over the term, with a time value of money adjustment made by the insurer. Thus the longer the term the premium is level for, the higher the premium, because the older, more expensive to insure years are averaged into the premium.
It provides protection cover, which remains fixed, for a specified period of time. 10 to 25 years. Here the death benefit remains the same throughout the term of the policy.

For a 15 year plan with protection cover of Rs. 300,000 the benefit payable in the event of death any time during the term of the plan would be Rs. 300, 000. For a 15 year plan a regular annual premium is payable throughout the term of the policy.