Term Insurance Plan is a pure risk cover. When you buy a term life policy, an insurance company promises to compensate the nominee/beneficiary in case of the unfortunate death of the insured during the policy term.
The sum insured opted under the policy is payable as a death benefit to the beneficiary or nominee on filling of a death claim with the insurance company, assuming the policy is premium paying.
The premiums under the term plans are cheapest and most affordable form of life insurance. It also helps you to get a tax benefit under section 80 C of the income tax act of the land. Also, a term plan bought at an early age offers lower premium rates.
Why get term insurance?
Considering the fact that life is unpredictable, one should always have a backup financial arrangement to support his/her family. Looking at the mounting inflation, lifestyle expenses, education expenses of children a term plan takes care of your family’s financial needs and provides them with financial stability through lump sum payout in times of distress.