What is Term Insurance Plans?

Introduction

Term Insurance plans are the purest insurance plans available in the market. There are different types of insurance plans in the market like Term Insurance, Endowment Insurance, ULIP, etc. Every type has its unique features. I have already written one article about the difference between insurance and investment. So, it is good to select the suitable insurance plans to protect your life and family. This article presents the key facts about the term insurance plans. If you have any doubts post it in the comments section. Subscribe to our future articles here.

Term Insurance Plans

• The following are the key facts about the term insurance plans.
• Term insurance plans are the purest form of insurance plans. It will cover the pure risk of your dying.
• In the event of your death, your nominees will receive the assured amount.
• You will not get any benefit, if you survive the policy term. As already said, the purpose of this policy is to protect your family from your death.
• The premium for term insurance policy is very low compare to other insurance policies. For example a 30 year old person takes 20 years policy for the sum assured of Rs.500000. His premium will be just Rs.1500 per year.
• Premiums are payable every year.
• Generally maximum entry age of this policy is 50 years.

Summary

It is the purest form of insurance cover for your family. If you are thinking about protecting your family from your death and not looking for any returns, it is the suitable policy for you. Hope this article helped you to understand the importance of term insurance policy. If you have any doubts post it in the comments section.

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