Term Insurance is most basic of insurance policy, which is a part of Life Insurance. As the word, ‘Term’ means a fixed or limited period. This policy provides coverage for a certain period of time.
This Insurance Policy provides protection for accidental death and injuries for a defined period of time. As a result, if you have an Insurance Policy and die within the term, your beneficiaries will receive the payout. The policy has no other value.
This Insurance is the most reasonable or relevant form of Life Insurance. In addition, it provides full financial coverage for a specified interval of time.
The Policy becomes worthless, while you or your beneficiary don’t make any claim during the defined term of the policy. Prices rise in accordance with increasing risks and advancing age.
Term Life Insurance is easier to understand and cost less than Whole Life Insurance.