Term insurance, a type of life insurance, provides coverage for a certain period of time or years. If the insured dies over the policy tenure a death benefit (or sum assured) is paid out. No payout is made if the insured survives the tenure.
1. Larger life cover
2. Riders: The policyholder can attach riders to the term plan, thereby enhancing the utility of the policy.
The purpose of taking life insurance is to provide life cover to the policyholder and financial security to his family.