Term insurance is a kind of life insurance that provides coverage for a certain number of years and if the policyholder passes away during the tenure of the policy then a sum assured, also known as the death benefit is paid to the nominee, who is a member of the family. No death benefit is paid if the life insured survives the tenure. Hence, the sole purpose of the insurance to protect the family in the event of the demise of the policyholder.

There are two kinds of life or term insurance plans that can be availed:

The pure life cover insurance, also known as the term insurance

The live cover insurance, which also works as a saving scheme, known as endowment insurance.

The term insurance plan also provides life cover and there are no savings that one can have from there. Hence, the premium here is quite low and one can get a larger coverage amount by investing very little, as compared to endowment plans. However, if a person wants a 1 crore life cover at the age of 30 with a 30 years term plan, the premium would still come at very affordable limits.

Moreover, one can also attach riders to the term plan and make the policy even better. Hence, a rider like the critical illness rider will ensure that if the person is diagnosed with a critical illness, he would receive a sum assured, which would be in addition to the death benefit payable if the policyholder dies within the tenure of the policy. Hence, there are many other similar riders like loss of employment rider, waiver of premium rider, disability cover rider and many more.

Depending on the insurance company, some providers provide the opportunity to further enhance the life cover during critical stages of the policyholder’s life. Hence, the cover can be enhanced by 50% during instances like marriage and 25% when a child is born to the policyholder. Hence, one could start out with a lower cover and then increase it gradually as the person enters more phases in his life.

There are also several other innovative features that the policyholders can make use and the insurance companies also offer them to encourage more people to take cover. Hence, there are discounts for non- smokers and the like. One can also get discounts when the cover is brought online.

Hence, getting a term insurance plan will always stand you in good stead and your family will be provided for against a rainy day.