A term insurance plan is a way of securing the future of the family in case of the untimely death of the policy holder.Life is unpredictable and no one can predict death, thus having a term insurance plan becomes very important if one has financial dependents and liabilities.
In today’s changing lifestyle people prefer having nuclear families and moreover with the increasing needs of an individual the liabilities have also increased. Thus in case of death of the sole bread earner of the family, the whole family would come under a heavy financial burden. So in order to protect the family from such risks one can opt for a term insurance plan. In case of an untoward incident leading to the death of the policy holder or permanent disability the nominee gets the sum assured. However in case of maturity of the policy an individual would not get any return in a term insurance plan.
Term plans are inexpensive and simple and can be bought for 5,10,15,20, 25 and 30 years. The premium of the policy depends on the sum assured and as the amount increases the premium also increases. Moreover some policies may also provide additional covers like critical illness cover, premium waiver etc. however the premium amount will be greater in such cases.
With the advancement of technology one can even opt for online policies as well . Online policies are cheaper compared to offline policies.