In what way an increasing life cover could be a better option?
Beshak ratings introduced the idea of increasing life cover options with term insurance policies. On checking the details of the same I found -
- The difference in premium for increasing life cover vs usual life cover option is ~80-100% more.
- The increasing cover option is also based on a simple interest of 5%/8%/10%. Not linked to CPI/purchase power/growth in individual's earnings.
- Max increase in the cover is up to 2X of the base cover.
Due to the above facts, it is not making any sense to opt-in for the increasing life cover option. Specially provided the fact that I'm eligible for life stage benefits while marrying, getting a home loan, or having children. Am I missing something?