Term insurance is a type of insurance that provides coverage only for a certain time period. In an insurance policy, there are two parties involved – the one who gets insurance done (insured) and the insurance company (insurer). So, if you are involved in a life insurance policy, you would be the insured and the company would be the insurer.

In the case of term insurance, the insurer agrees to pay a pre-determined amount to the insured if the insured loses life within the decided term or time period mentioned in the policy. If the insured survives even after the term ends, the insurer is not liable to pay anything. 

Getting a term plan is important because there are innumerable uncertainties risking our lives on a daily basis. Every year, almost 1.35 million people lose lives because of road traffic accidents. Apart from that, there are so many types of illnesses that claim lives.  

If you are the sole earner in your family, getting insurance done becomes even more necessary because if anything happens to you, your loved ones would have to suffer financially. If you have loans to pay and your kids are young, going for a term plan would be beneficial. However, you may have some doubts about term plans. We have discussed the common ones below.

How To Decide The Term?

It is advisable to calculate and review for how many years you need the coverage. If you have small children, you would want to choose a term sufficient to cover your life until they are self-dependent, which could be 20-30 years. If you are buying the term policy to cover your loan, you may want to fix the term according to your loan period. For example, if your loan period is 10 years, you can invest in the term insurance with a 10-year term. This way, if you die before 10 years, your policy amount could be used to pay the loan.

When Should I Buy The Term Insurance?

There is not any maximum age to invest in a term plan and everyone above 18 years can buy a term plan. However, if you choose to buy the policy early in life, you can obtain the benefit of getting a huge death benefit while paying a low premium amount. This is because as you age, you are prone to contract diseases and medical conditions like diabetes, blood pressure, etc., which increase the premium amount while decreasing the death benefit. 

What Would Happen If I Do Not Die?

An insured would not get any maturity benefit if they do not die during the term. However, you can renew your policy as the term ends. Additionally, the policy may change as the period ends. For example, you may be asked to pay higher premium amounts. 


Investing in a term insurance policy is a wise choice if you want to secure your family’s financial future. Various insurance companies are offering several term plans. But you should choose the one that fulfils all your requirements.