Term insurance is a variant of the life insurance policy that provides death benefits with a cheap insurance plan in case an unfortunate event should occur during the term specified in the policy. This can reduce the expenses occurred during the term and may also offer an option of setting up savings account.
How does it work?
Based on the policy duration - which can cover for period between 5 -30 years if the insured person dies within the period of the policy, the Death Benefit will be paid to the family. If not, no claim can be realized for the person or the family. Some Term insurances may have slightly higher premiums in its advanced years with factors such as Age, value of money and additional costs that maybe attached for a longer coverage period.