Term insurance is pure life cover at very reasonable premium wherein sum assured is paid by the life insurance company to the nominee on the death of insured person when the policy is in force.
Buy term plan earlier as premiums are lower for young persons.
Term insurance cover depends on the individual’s current annual income.
Limited pay option allows premium for specific period of time (5 or 10 years) rather paying regularly for policy duration.
Term insurance should cover 10 to 15 times of annual income of policyholder.
An adequate term cover depends on existing debts and income replacement of an individual to take care of dependents.
Sufficient term cover should be on top priority even if individual has group employer’s plan.
