Term Insurance is a type of life insurance that provides financial protection for a specific period (term). If the policyholder dies during this term, the nominee receives the sum assured.
Term Insurance is a pure protection plan with no investment component. It offers high coverage at low premium, making it one of the most affordable life insurance options.
The policyholder pays a fixed premium for a chosen term (e.g., 10, 20, 30 years). If the policyholder survives the term, typically no maturity benefit is paid (except in return-of-premium plans).
In India, term insurance is regulated by the :contentReference[oaicite:0]{index=0}.
"A person buys a term plan of ₹1 crore for 25 years. If they pass away during this period, the nominee receives ₹1 crore."