ECONOMICS

Detailed explanation-1: -With term insurance, you can get a large amount of life cover^ (i.e. sum assured) at a relatively low premium rate. The benefit amount is paid out to the nominee in case of the death of the person insured during the term of the policy.

Detailed explanation-2: -Generally, term insurance policies just pay a death benefit if the policyholder dies within the policy’s term. No benefit is given on maturity, i.e., if the insured survives the policy term. Return of premium term plans, on the other hand, reimburse premiums if the plan matures.

Detailed explanation-3: -A death benefit is the primary reason someone purchases a life insurance policy; it’s the amount of money your insurer will pay out to your beneficiaries if you die during the policy’s term.

Detailed explanation-4: -There are basic term insurance plans that focus only on the death benefits. Meaning, if a policyholder dies during the policy term, the nominee will receive the sum assured in that case. However, if the policyholder outlives the policy term, no sum assured is given.

Detailed explanation-5: -A level term policy pays the same benefit amount if death occurs at any point during the term.