Term Life Insurance is one the most recommended product and most demanded products in the market. Let us understand the meaning of the term plan. It is also known as pure risk insurance or a pure term plan. The specialty of this product is you can buy decent insurance for the family at the most affordable price. The ideal age to buy the term plan is (25 years to 40 years) or the moment you join the company and start earning in the case of a salaried person and in the case of a professional when you have ascertained on paper income and documents. Higher the age premium becomes costly. Average Premium for 1 crore for age 30 years and policy term of 30 yrs ranges from 10000 to150000 annually. Add-on riders available in the term plan are an accidental benefit rider, critical illness rider, and refund of premium also available under the policy.

Term plan is a pure protection plan which offers a higher cover and reasonable cost as the company liability to pay the amount is only in case any death occurs during the selected period in the plan. This Plan should be purchased by a single income earner of the family whose family is dependent on the income. A person who has more loans and liabilities, like housing loans, business loans, Key persons of the organisations and who wants to make a provision of hugecorpus for the family in his/her absence due to death. This planning is a vital part of risk management.