A term insurance plan is a pure insurance product. In case of the demise of the insured during the tenure of the plan, his/her nominees get the sum assured. But if the insured person survives the term of the policy, the nominees get nothing.
Term insurance policies: Term insurance policies address the insurance needs of customers very well. With only a small premium, a person can buy an insurance policy having a very large sum insured. Buying a term policy guarantees peace of mind. The breadwinner knows that even if something were to happen to him, his family's financial future will not be jeopardised. There will be enough money to pay off the home loan so that his family is not deprived of this major asset. Provided he has bought adequate insurance, there will also be enough to take care of the family's day-to-day expenses, and to pay for the children's education and marriage.
Buying Term Insurance: Buying term insurance also makes you eligible for a few tax benefits. One, the premium you pay is eligible for deduction under Section 80C of the IT Act. Two, any sum from the policy that your nominees receive from the policy will be exempt from taxation under Section 10 (10D).