Term Insurance!

Term insurance is pure life insurance cover. In simple terms, a term plan provides the policyholder protection over a specified period of time (policy period) in return for regular premium payments. In the event of the policyholder’s death during this period, the insurance company pays the nominees (family members) the sum assured (SA) – death benefit – under the policy. A term plan, however, does not have any maturity benefit, unlike endowment policies or unit-linked insurance policies (ULIPS). That is, if the policyholder lives beyond the policy term, he or his family will not receive any payment. As mentioned in previous feeds, term plan is absolute necessity especially for the bread earner in the family.