SIMPLE POLICY

Which policies don't have high charges and are simple?

The simplest form of life insurance is the pure risk cover, also known as term plans. A pure risk cover works like a contract that provides a specified death benefit, but no cash build-up or investment component. The guaranteed sum assured is only for a specified term, usually one year, and the policy is renewable at the end of each term period. The policy term can be longer also, but will be effective only when premium is paid each year. Since the premium for risk cover is low, one can get adequately insured for a relatively low premium cost.
Normally, there are two types of term policies—one returns the premium at the end of the term and the other doesn’t. Since you don’t want returns, you can go for the second kind. In this case, the premium will be the lowest.