Life insurance is a financial buffer for family members, in the event of the sudden death of the insurance policy holder. Term life insurance, especially, gives adequate coverage at affordable prices for your family members during those stressful times. 

So, is term life insurance a good investment? Let us explore the various features before deciding on whether to opt for a term life insurance plan.

Term life insurance 


Term Life Insurance

Plan Terms 

Simple to understand

Insurance Tenure

Specific time period to suit policy holder’s financial needs


Death benefit paid to beneficiaries of deceased policyholder in the event of his/her untimely death


Budget friendly affordable insurance plan available at competitive prices

Premium value

Low compared to other cash value plans


Plan has more flexibility as there is no savings element present. They can be easily renewed.

Tax Benefit

Benefit can be availed under section 80C of the Income Tax Act


No surrender or loans available on term plans

Points to Remember: 

Term life insurance plans have various features as seen above but one should remember that the premium for such insurance plans increase with advancing age. Hence, it’s highly recommended that you take term life insurance as early as possible to benefit from the lower premiums. 

Term life insurance plans will not serve your financial needs if they are required for a specific purpose, namely, to meet your child’s education needs, marriage expenses etc.


Verdict: As we mentioned above, life is unpredictable. Term plans help you reduce the financial crisis that your family faces on the unlikely death of the primary breadwinner. While term plans do not offer maturity benefits, they are a good investment, as it gives you the knowledge that your family will be financially secure, even when you are not around. Instead of looking at term plans as an investment, consider it as a mandatory investment for all.