What is Term Insurance?
Background
Term insurance is pure life cover that pays your nominees a lump sum if you die during the policy term and pays nothing if you survive. It is the cheapest way to buy high coverage.
Explanation
During working years, term insurance protects your family from the financial impact of your early death, covering goals like children’s education and home loans. As you build sufficient assets and approach financial independence, the need for large term cover reduces.
Example
A 30-year-old with dependants might buy a ₹1.5–2 crore term plan until age 60. By their late 50s, if their corpus comfortably covers goals and expenses, they may not need to extend or add more life cover.
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