Incremental Term
Insurance Plan
  • Understanding thoroughly
  • Key Advantage
  • How does it work?
Incremental Term Insurance Plan
Buy Policy in just 2 mins

Buy Policy in just 2 mins

Happy Customers

2 lakh + Happy Customers

Free Comparison

Free Comparison

Customized Term Insurance Plan for you.

Get upto 10% Online Discount*



Incremental Term Insurance Plan

Term insurance is one of the most important aspects of financial planning. So, if you are looking to secure the future of dependents, you should definitely buy term insurance. The cover will provide you with death benefits and future security for your loved ones.

Understanding Incremental Term Insurance

In this realm of financial planning, we all seek comprehensive coverage to secure our loved ones' future. To make it more prominent a new innovative approach has been introduced which is the "Incremental Term Insurance Plan." This is a unique combination of affordability, flexibility, and long-term financial protection. Basically, traditional term life insurance provides coverage for a fixed term ranging from 10 to 30 years. In this, you have to pay regular premiums and later on receive the death benefits, However, many of us want to change insurance with time due to changing needs of demands. This is where incremental term insurance comes into the picture.

What is the concept of Incremental Term Insurance?

Incremental Term Insurance is also known as "term laddering" or "term stacking". The name suggests it allows you to customize your coverage by layering multiple term policies with different term lengths and coverage amounts. The main vision of this type of policy is to align insurance protection with the evolving life stages and financial responsibilities.

How the Incremental Term Insurance better?

There are several benefits of taking incremental term insurance. Read below for the details.

  • Cost-effective Getting incremental term insurance can be more cost-effective than a single large-term policy. As the coverage decreases with age or changes in circumstances, the policyholders can allow shorter-term policies to expire, resulting in lower premiums.
  • Gives the power to deal with inflation The amount you have selected as your life cover amount might not be adequate for long-term requirements. This incremental term life insurance plan ensures your requirements with the rise of inflation. As your SA increases annually, it will protect you from inflation and allow you to have a sufficient amount to take care of your family's requirements after your demise.
  • Financial Planning Tool Incremental-term insurance acts as a financial tool for your long-term requirements. It complements long-term financial planning by aligning coverage with milestones such as mortgage pay-offs, children's education, or retirement saving goals.
  • Premium Rates Moreover, the premium rate that you have to pay remains the same throughout the policy term. But somehow, it depends on the terms and conditions of the policy. To compensate for an increase in the sum assured over time, the premium amount that has to be charged during the first few years is more than that charged during the other half of the policy.
  • Mitigating Risk By the several-term policies, individuals can manage the risks of being underinsured at any point in life in a better life. This strategy ensures that dependents are adequately protected throughout the term.
  • Tax Benefits You can get numerous tax savings benefits on the premium amount paid under section 80C of the Income Tax Act, 1961.

Life Insurance Banner

Life Insurance Banner

A better Understanding

Here is a sample illustration of the incremental term insurance policy. Let us say that there is a guy named Arjun. He purchased an incremental term insurance plan at 31 years of age. Arjun being the sum assured decided to avail Rs 20 lakhs for a policy term of 30 years. As per the plan, a 5% rate of increase in SA amount every year up to a maximum increase of 100% of the chosen amount.

Here is the illustration of the increment of sum assured during the policy term:

Policy Year Sum Assured
1st 20 Lakh
5th 24 Lakh
10th 29 Lakh
20th 39 Lakh

Now, from the 21st to the 30th year, the SA will remain the same as 40 Lakh as the maximum of increases allowed is double the amount only. So, if Arjun dies during the 15th year, his nominees will get 35 Lakhs. In case he dies after the 20th year then his nominee will get 40 Lakh.


Incremental term insurance plans empower you to secure your financial future proactivity. By matching the coverage to your changing life stages and obligations, you can maximize your insurance benefits while optimizing the cost. You can evaluate your current financial situation, including debts, family size, and long-term goals. Choose the best policy for you and navigate your financial journey with confidence and peace of mind.

Incremental Term Insurance Plan: FAQs

1. What is incremental premium?

The incremental term insurance policy is the policy where the cover amount of the term policy is increased annually.

2. Can I increase my existing term insurance amount?

The sum assured amount of the policy increases per annum.

3. Can I take 3-term insurance?

You can buy more than one term insurance policy.

4. What is the difference between level term and increasing term?

In increasing term insurance, payouts grow over time. Meanwhile, level-term policies have death benefits and premiums that stay the same throughout the entire policy tenure.

5. What is an increment in insurance?

An incremental term insurance is a policy where the sum assured amount will increase at a fixed rate after each year.

Term Insurance Companies

Check and compare plans from 21 IRDAI-approved term insurance providers before purchasing a term plan.

What Our Customers Have to Say

Customer Review Image

Rahul kumar


February 16, 2024

Peace of mind during uncertain times"- i had query regarding my lic term, so i decided to talk with advisor. I had resolved all my queries regarding same.

Customer Review Image

Neha negi


February 16, 2024 is a Top-notch insurance provider. Competitive rates and excellent coverage options.feels very satisfied with my recent purchase of aagon life insuance

Customer Review Image

Anupam yadav


February 16, 2024

Excellent customer service of They guided me through the entire process of bajaj allianz life insurance and found me the best plan with good coverage under my budget

Customer Review Image

Sneha srivastva


February 16, 2024 have a Efficient support team. Had a claim settled promptly for my india first life insurance with no hassle. Trustworthy company for all your insurance needs

Customer Review Image

Sachin sharma


February 16, 2024

Smooth experience from quote to claim for my hdfc life insurance, i honestly Impressed with their professionalism and transparency. Definitely is my go-to insurance provider.

Customer Review Image

Rakesh kumar


February 16, 2024

Great service! Quick claim processing for my sbi life insurance, Highly recommend for reliable insurance coverage at competitive rates.

Customer Review Image

Sunil Sharma


February 16, 2024

Responsive and knowledgeable agents"-i recently has a question regarding my kotak mahindra life insurance policy, a advisor name koushik from had patienly answered all my inqu...

Customer Review Image

Vaibhav gupta


February 16, 2024

Recently I turned 18 years old, and the first thing that comes to mind is to opt for a term plan. So I visited for a better understanding, and an advisor named Vishal properly under...

Simran Kaur Vij

Written By: Simran Kaur Vij

Simran is an insurance expert with more than 3 years of experience in the industry. She may have all the answers to your insurance queries. With a background in Banking, she proactively helps her readers to stay on par with all the latest Insurance industry developments.