Term Life Insurance Policy, India

Term life insurance policy covers risk only during the selected term period. If the policyholder survives the term, the risk cover comes to an end. Term life policies are primarily designed to meet the needs of those people who are initially unable to pay the larger premium required for a whole life or an endowment assurance policy.

No surrender, loan or paid-up values are granted under term life policies because reserves are not accumulated. If the premium is not paid within the grace period, the policy lapses without acquiring any paid-up value. A lapsed policy can be revived during the lifetime of the life assured but before the expiry of the period of two years from the due date of the first unpaid premium on the usual terms. Accident and / or Disability benefits are not granted on policies under the Term plan.

Term life policies are the cheapest form of insurance. Premiums in a term policy pay for the insurance and no part of the premium in a term life insurance policy is used for investment purposes. Term life policies are the cheapest form of insurance. Premiums in a term policy pay for the insurance and no part of the premium in a term life insurance policy is used for investment purposes. The length of a term life insurance policy varies from 5 to 30 years.

Many people prefer term insurance to provide their families with the security cover, and then use the additional funds they would have paid into an endowment or other life insurance policy to make investments of their own choosing. Term life policies are suitable for those who need to provide financial security to their family but are unable to pay the larger premium required for a Whole Life or Endowment policy.