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Increasing Sum Assured
Term Life Insurance

This is an additional paid benefit in some policies. In this benefit, the sum assured of the policy systematically increases during the term of the policy.

The sum assured increases by a certain percentage of the original sum assured, on every policy anniversary.

Many policies will cap the increase either to a particular sum assured or till a particular age.

This is a helpful benefit for people early in their careers. It helps factor in the increasing income, lifestyle expenses, and liabilities as they grow older. The advantage is that your cover increases automatically and without any paperwork or processes.

EXAMPLE:

XYZ insurer provides an increasing sum assured option where sum assured increases by 10% every year till the age of 55 years.
Another instance is when ABC insurer offers an increasing sum assured option where sum assured increases by 10% every year till the increased cover reaches 2X of the original sum assured.


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