What is a term insurance?
One of the most authentic life insurance policies is term insurance. It is a pocket, solid insurance plan. In case of any mishap during the policy period, the term insurance plan covers to offer a lump sum death benefit to the beneficiaries of the policyholder. The family of the policyholder is taken care of and also given financial stability assurance. Furthermore, the insurer doesn't provide any benefit to the insured or the beneficiaries if the insured survives throughout the policy term.
Exceptional to this clause are premium return policies where the insured is offered the average of all the premiums paid. There is no investment attached under the term insurance plans, so the premiums are paid only towards the mortality charges. This is the only reason why term insurance plans are cheaper than other insurance covers.