For every earning person, term insurance is the first step in financial planning as it is simplest and cheapest form of Life Insurance. A simple term insurance costs as low as Rs. 13 per day for a cover of Rs. 1 crore. These plans help to pay during unfortunate and unforeseen events like sudden death due to accident which can impact your family’s financial future. The premium is comparatively low as there is no saving or investment factor attached to it and covers the risk of life.
What is Term Insurance?
It is a type of life cover that offers coverage for a defined period of time, and if the policy holder dies during the term of the policy then the death benefits are provided to the assigned nominee. The amount of coverage and tenure of the policy are fixed. Term insurance plans provides coverage at a fixed rate which known as premium for a fixed period of time. This is the cheapest way to provide death benefits at young age. The most common duration for the policy is 10, 15, 20 and 30 years.