Term insurance plan is one of the most simplest and fundamental insurance products available in the market. Under this plan, the event will be payable to the nominee or family member in the event of unfortunate demises of the policyholder.There are different types of term insurance policies available. Several policies offer a premium duration for 10yrs, 20yrs or 30yrs.

Term insurance plans are low-cost life insurance cover that provides complete protection and full financial stability to your loved ones in the event of an unfortunate event.

Let us understand with an e.g. -

Mr. Mathur has purchased a term insurance plan for Rs 50 lakhs (sum assured) for a period of 20yrs. He needs to pay a premium of Rs 3,500 every year for the entire term. In case Mr. Mathur dies during the policy term, his nominee shall get the sum assured. In case, if Mr. Mathur dies after the policy term, then he won't get any benefit.

A pure term insurance policy which does not offer any living benefits, such as maturity or surrender benefit. However, there are certain plans like trop (term with return of premium policy) which offers areturnof premium in the event the insured survives the policy term.

Compared to a whole life insurance plan, a term plan is less expensive but offers a wide range of financial benefits and shields your family against liabilities, during an unfortunate incidence.