What is a term insurance policy?

A term insurance policy is a type of life insurance plan that provides financial protection for a specified period, known as the policy term. In this plan, the insured person pays a fixed premium regularly, and if the person dies during the policy term, the nominee receives the death benefit. However, if the insured survives the term, no maturity or survival benefit is paid. The main purpose of term insurance is to provide high life cover at an affordable cost, ensuring that the family is financially secure in case of the policyholder’s untimely death. It is especially suitable for people who want to safeguard their dependents against financial hardships such as repayment of loans, daily expenses, or children’s education in their absence.