Money word, in plain English ← Back to all terms
Term insurance
Cheap, pure life cover that pays your family if you die during the term.
Example. A ₹1 crore term cover can cost a young person a few hundred rupees a month.
Term insurance is the simplest kind of life cover. You pay a small premium, and if you die during the policy term, your family gets the sum assured. It has no investment part, which is why it is cheap.