Sudesh and his wife were recently blessed with a daughter and were both brimming with joy. They organised a get-together of family and friends a few months later to celebrate the occasion. While meeting friends and family the discussion turned to finances. Someone asked Sudesh about his term life insurance and whether it covered the rising inflation. Sudesh was confused and decided to understand more

Yes, he did have a term plan in place because he wanted to secure the future of his family, but he had not factored in the rising costs of inflation every year, and the impact that could have. Was it too late for him to rectify this decision? Could he opt for an increase in term life insurance every year? If only heÂ’d have thought about this sooner.

Most people tend to opt for a basic life cover wherein they can either opt for a lumpsum benefit on death or monthly pay outs as per their convenience. With Generali Central Care Plus basic life cover for Rs 1 crore under Option 1 can start for a premium as low as Rs 8554 per annum, for a 25 year-old healthy non-smoker male, for a policy term of 45 years. The premium and coverage amount differs from insurer to insurer

However, one look at the inflation figures can get you thinking if this coverage is enough. IndiaÂ’s retail inflation, which is measured by the Consumer Price Index (CPI), eased to 5.02% in September 2023 from 6.83% in August. 2023, according to the latest data from the Ministry Of Statistics and Programme Implementation. CPI hit the highest of 7.79% in April 2022 , and the lowest of 4.06% in January. 2021.

Such unpredictability can for sure impact the amount of coverage you choose as a part of your term life insurance. However, opting for increasing income protection could be your best bet.

If the nominee wishes to take a lumpsum amount, they could as well do so at the time of claim settlement. However, this cannot be done once the monthly increasing income has already begun.

Generali Central Flexi Online term plan provides this option of income protection for those who want to secure their familyÂ’s future in the long run. It also offers a free look-in period and a grace period of upto 30 days to pay your premiums are some of the benefits that you get.

You can opt for riders as per your convenience. WhatÂ’s more, your premiums qualify for tax benefits as well. Packed with so many advantages, term life insurance with the option of increased monthly payments, to factor in inflation, is in tune with the future. So take this wise decision soon!

Generali Central Care Plus : This is an Individual, Non-Linked, Non-Participating (without profits), Pure Risk Premium, Life Insurance Plan. UIN: 133N030V06

Generali Central Flexi Online Term Plan: This is an Individual, Non-Linked, Non-Participating (without profits), Pure Risk Premium, Life Insurance Plan. UIN: 133N058V04