- Increase in coverage
- No medical examination
- No additional fees
What is the Life stage benefit in term insurance?
Term insurance is one of the affordable ways to secure your family against any unforeseen events. It will pay a fixed sum of money to your dependents if any unforeseen event happens to you. The amount can be used to cover the future expenditures of your dependents.
But what exactly is life stage benefit in term insurance? Since every individual has to go through different life stages in life such as: Teenage, Adult, retirement and so on. Where the needs and requirements of term coverage vary as responsibilities.
So, while seeing this problem the insurer companies come up with a feature of life stage benefit, where your term insurance coverage will increase as the new responsibilities come.
How does the life stage benefit option work?
Life stage benefit is one of the amazing features of a term insurance plan. It helps you to increase your sum assured during several life stages. The life stages are pre-decided by term insurance companies such as marriage, becoming parents, taking a home loan and so on. While achieving a certain milestone, you have to ask the insurer to increase your policy sum assured as per your requirement.
The new sum assured will be available from the next policy year onwards.
What are the advantages and disadvantages of life stage benefits?
Below are the advantages and disadvantages of life stage benefits:
| Advantages | Dis-advantages |
| Less paperwork | Increased premium amount |
| No additional medical test | Waiting period |
| Same underwriting | Limit on the sum assured |
| Hassle-free process | Increase in premium amount |
Condition you must know before using the Life Stage Benefit feature
Below are the conditions you must know before using the life stage benefit feature-
- Age of life insured
Life stage benefit can be used for a certain age. The insurance company determine that age, which varies from policy to policy. - Availability of features
Once you use the life stage benefit, you won’t be able to use other available features of your term insurance plans such as limited pay, increasing cover, and monthly income payout option. - Riders
Once you choose the life stage benefit, some insurers would allow you to add additional riders to enhance the benefit of your term insurance plan. - No. of premium remaining
Some insurers also consider the number of premiums left, before opting for life-stage benefit. It is suggested to go through the policy brochure before opting for this feature. - No. of policy year left
Some insurers also consider the number of policy years left, before opting for life-stage benefits. It is suggested to go through the policy brochure before opting for this feature.
List of top 5 term plans with life stage option benefits:
Below is a list of the top 5 term plans with life-stage benefits
| Plan Name | Entry age | Policy term | Sum assured | ||||
| Tata AIA Sampoom Raksha supreme | 18-60 years | 10-67 years |
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| ICICI Prudential i-protect smart | 18-65 years | 5-85 years |
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| Bajaj life e-touch | 18-65 years | 10-99 years |
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| HDFC Life Click 2 protect super | 18-65 years | 5-85 years |
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| SBI Life e-shield next | 18-65 years | 5-100 years |
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What is the difference between Life Stage Benefit, Increasing Cover & Manual Upgrades?
For a quick comparison, we have taken some common questions from all three segments:
| Common question’s | Life -stage benefit | Increasing cover | Manual upgrades |
| How does the sum assured increase? | It will increase automatically. | You need to add this feature while buying a policy and inform the insurer before opting. | You need to re-purchase the term plan again. |
| Did my terms and conditions of policy remain the same? | No, terms and conditions will be changed as per the new sum assured. | No, terms and conditions will be changed as per the new sum assured. | Since you are purchasing a new term plan. Your terms and conditions of the plan remain the same. |
| Did I have to again undergo a medical test? | No, you would not need to undergo a medical test. | No, you would not need to undergo a medical test. | Yes, as per IRDAI New guideline, you have to undergo a medical test before purchasing a life insurance plan. |
Final words
Now, you do not have to worry about rising rates of inflation, with the life stage benefit feature you can sit back and relax to cater all your future responsibilities. If you still have any doubt regarding life stage benefit features you can visit PolicyX.com. Our certified insurance advisors will shortly be in touch with you.
Life Stage Benefit in Term Insurance: FAQs
1. What is the life stage benefit option of term insurance?
The life stage benefit of term insurance allows policyholders to increase their coverage at different significant life events.
2. How does life stage benefit work?
When you achieve a certain life event like getting married or having a child, your term insurance sum assured will increase automatically.
3. What are the typical life events covered under life stage benefits?
Life events such as: Marriage, Birth and adoption of a child, Purchase of a house and children’s higher education.
4. Can Life stage benefits be reduced or cancelled once added?
Generally, once you increase your coverage under stage benefits, the increase is permanent.
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Written By: Varun Saxena
I am a passionate content writer with over three years of experience in the insurance domain. An avid learner, I always tries stays ahead of the industry's trends, ensuring my writing remains fresh and includes the latest insurance shifts. Through my work, I strive to engage with targeted insurance readers.
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