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Term insurance is a simple life cover that provides financial protection to a family if the policyholder dies during the policy term.
It ensures financial stability for families who depend on a single income for EMIs, education, daily expenses, and long-term needs.
It does not offer investment returns or maturity benefits. It only pays a fixed amount to the nominee if the policyholder dies during the term.
Term insurance is highly affordable. A healthy young person can get extensive coverage, such as Rs 1 crore, at a low monthly premium.
Experts suggest coverage of 15–20 times annual income. It should also account for loans, education costs, and future family expenses.
It covers death due to illness, accident, or natural causes, depending on policy terms and conditions at the time of purchase.
Claims may be rejected for non-disclosure of health details, suicide within early policy years, or risky activities not declared in the policy.
Buy early, be honest about medical history, compare claim settlement records, and ensure your nominee is aware of the policy for smooth claims.