What is a term insurance cover? Does one get any benefit when it matures?
A term insurance plan is a pure risk cover, wherein a very low cost is paid towards the coverage of life risk for a specific term. If the insured person survives the term, then normally he/she gets nothing. However, if the insured person does not survive the term, the legal beneficiaries get the amount equivalent to the sum insured. However, some insurance companies have devised term policies with the benefit of return of premium on the maturity of the policy. Therefore, whether one gets the premium back, or not, will depend on the type of the policy. The premiums for policies that give a lump sum at the end of the term are higher as compared to the policies that do not promise any returns at the end.
A term insurance plan is a pure risk cover, wherein a very low cost is paid towards the coverage of life risk for a specific term. If the insured person survives the term, then normally he/she gets nothing. However, if the insured person does not survive the term, the legal beneficiaries get the amount equivalent to the sum insured. However, some insurance companies have devised term policies with the benefit of return of premium on the maturity of the policy. Therefore, whether one gets the premium back, or not, will depend on the type of the policy. The premiums for policies that give a lump sum at the end of the term are higher as compared to the policies that do not promise any returns at the end.
