What are the advantages of buying a term insurance policy other than low cost?
Term insurance policy is the cheapest and, comparatively, the simplest form of insurance policy
What are the advantages of buying a term insurance policy other than low cost?
Harshad Shah, Vadodara
Term insurance policy, also known as pure life cover, is the cheapest and, comparatively, the simplest form of insurance policy. Under this insurance, against payment of regular premium, the insurer agrees to pay the beneficiaries the sum assured in the event of premature death of the life assured. However, if the life assured survives till the end of the policy term, nothing becomes payable under this policy. This particular policy has no savings component and the premiums which one pays against this policy are purely the cost of buying the life cover. Term insurance policy happens to be the best form of insurance policy and is suitable for everyone. However, the policy is more suitable for those who are looking for a low-cost life cover without any savings benefits attached. Or those who are at that stage in life where insurance cover is vital but they cannot afford high premium payment due to low income.