What is term insurance ?

Term insurance is a cheapest form of life insurance that provides financial coverage to the insured for a specific time period and no maturity claim. If you want to live peacefully without worrying about the future and financial stability of your family (in your absence), a term life plan is what you must buy. It is pure life insurance (not a mixture of insurance and
investment). Insured have to pay a premium for fixed term of his policy. IN case of unfortunate death of insured the sum assured will be paid to the family of insured however if insured survives the period of policy the risk cover ceases down. premiums are based on a person’s age, health, and life expectancy. Premiums paid towards a term insurance plan exempted from tax under section 80C. Sum assured is also tax-free under section 10(10D)

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