Term insurance is a pure risk cover plan that provides coverage to the beneficiaries of the policyholder in the event of his death while the policy is active. 

For instance, Mr. Mathur has purchased a term insurance plan with a sum assured of Rs 50 lakhs for a policy term of 20 years. The premium to be paid is Rs 3500 (annually) for the entire policy term. In case of the unfortunate death of Mr. Mathur the policy term, his nominee will get the entire sum assured.

In case the policyholder survives through the policy period, s/he shall have to forgo the cover. Nonetheless, there are certain plans available in the market today wherein, if one survives through the policy period, one gets back the premium; note, however, that such plans have higher premium amounts. 

A term plan is the least expensive type of life insurance that offers a wide range of financial benefits and offers a shield to your family against liabilities, during an unfortunate event.