Term Policy

A term life insurance fulfills the main and basic idea behind life insurance, that is, if the life insured dies prematurely there will be a sum of money available to take care of his/her family. This lump sum money represents the insured’s human life value for his loved ones: either chosen arbitrarily by self or calculated scientifically.

A term insurance policy also comes handy as an income replacement plan. Here in place of payment of a lump-sum amount to the dependents, on the happening of an unfortunate death during the term of the policy, a series of monthly, quarterly or similar periodical pay outs for a pre-defined duration may be provided to the dependent beneficiaries.

Normally a term insurance policy covers only death. However, when it is purchased with a disability protection rider on the main policy and if someone were to suffer such a catastrophe during the period of term insurance, the insurance company will provide a payout to the beneficiaries/insured person.