There are various types of life insurance policies. Among these, some provide insurance coverage for an individual for a particular period of time. Such types of insurances are called ‘Term Insurance.’

Live TV

Loading...

In term insurance, an individual’s family will get full benefits of the policy if the person dies during the period, when the policy is active.

If the policy’s time period ends, while the person is there, then it may get cancelled and the individual will likely lose the entire premium.

However, most term insurance plans come with the option of converting the term plan in to a regular insurance plan once the fixed time ends.

The premium can often be paid either has a lump sum amount, monthly basis, quarterly basis or yearly basis.

The premium amount can be determined based on the individual’s age, health, habits etc.

People who are younger usually has to pay a lesser amount, so it's preferable to start a policy as early as possible.

First Published:Jul 4, 2018 5:35 PM IST