GuideUpdated Nov 2026 · 1 min read
Term Insurance Explained
Pure protection for a fixed period.
Term insurance pays the sum assured if the life insured dies during the policy term. If the person survives the term, nothing is normally paid. Because it carries no savings element, it gives the most cover for the premium.
Common Variations
- check_circleLevel term: the sum assured stays the same.
- check_circleDecreasing term: cover falls over time, often to match a loan.
- check_circleIncreasing term: cover rises over time.
- check_circleReturn of premium: premiums come back on survival, at a higher cost.
FAQs
Does term insurance pay on survival?expand_more
A standard plan does not. A return of premium plan does.
Why is term insurance cheap?expand_more
It pays only on death within the term and builds no savings.
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