A term insurance policy is a form of life cover that provides financial protection to the nominees in the event of death of the policyholder within the policy term. If the insured survives the policy term, no benefits shall be payable to the beneficiaries. For this reason, the premium in a term insurance is lower than the whole life insurance plan which provides maturity benefits.

The death benefits on a term insurance can be claimed only after a stipulated period from the commencement of the policy. Most insurance companies don’t provide any death benefits if the insured dies within a year of taking the policy. Only up to a certain percentage of premium is paid in such circumstances.

There are also term plans provided by few insurers which offer return benefits. However, such plans may carry higher premiums and tricky terms and conditions. Ensure that your family gets adequate financial protection with the term policy.

Also, while taking a term insurance policy, check and analyse the claim settlement ratio of the insurer, how much cover you need, how much premium you can pay, terms and conditions.