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In what way an increasing life cover could be a better option?

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04 May, 2021 by  Kautilya Bhardwaj

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?

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06 May, 2021

Dear Kautilya

You are missing the most important feature that is guarantee of insurability .

When we apply for insurance , we don't know whether you will be insured or not . Increase age also bring health complications which makes you uninsurable or insurable with increased premium .


So go for increasing sum assured if your family has history of mid aged health issues like hypertension , diabetes ., obesity or other problems .

It will make sence only in such eventualities

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07 May, 2021

Hello Kautilya,


  1. In our view, Life Stage Benefit has too much fine print and is not really a dependable/effective method to upgrade your cover. Please read this article that compares Lifestage with Increasing Cover option: What is Life Stage Benefit option in term insurance? Can you depend on it? (beshak.org)
  2. The increasing cover is useful for people who are buying the maximum cover they are eligible for today but foresee additional financial responsibility in the future, for which they may need an additional cover. In our experience, we have seen people buy at least 2-3 term policies in their lifetime purely to upgrade their cover to their new financial life.


Hope this clarifies.


Team Beshak

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