What is Term Life Insurance?

Life-term insurance is considered to be the purest form of insurance. In this insurance, the person gets the insurance amount only after death. Apart from this, there is no facility for savings or investment in it. Let us know in detail about life-term insurance.

No kind of saving or investment option is given in this life insurance, hence you can get higher coverage by paying less premium in it.

Term insurance is a kind of agreement between the policyholder and the insurance company. In which the insurance company ensures that the family continues to receive financial assistance after the death of the insurance holder. But in this, the insurance holder does not get any benefit while he is alive.

How does it work?

First of all, buy a term life insurance policy as per your choice. After purchasing the policy, the policyholder keeps paying the premium for a fixed period. If the policyholder dies in the meantime, then a fixed amount is given to the family of the policyholder by the insurance company. This amount is based on the policy. This amount can range from a thousand rupees to lakh rupees.

There are many types of life-term insurance. You can take term insurance as per your needs.

Level Term Insurance Plan

In level-term plans, the premium amount remains the same for the entire term of the policy. This means the agreed premium and sum assured will not change for the entire term of the policy.

Decreasing term insurance plan

In a decreasing term plan, as its name suggests, the sum assured in the policy taken under it keeps decreasing every year. Apart from this, the premium of this insurance policy is less as compared to other plans.

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