Term insurance is a type of life insurance that covers the policyholder up to the age specified in the policy. Should the life assured die before the term is over, the beneficiary will receive a death benefit as per the policy selected. The objective of having this insurance is to provide financial coverage to the life assured and his/her family, in the event of unfortunate situations like permanent disability or death.

Terminal insurance is very similar to term insurance cover but instead of death benefit it provides tax-free lump sum when diagnosed with terminal illness. Terminal illness benefit is defined as benefit paid when the estimated survival period of life assured is less than 12 months. This is certified by a medical doctor. Purchasing this insurance gives you the security that a guaranteed amount will be paid if the unforeseen happens and you are diagnosed with a terminal illness.

Term insurance guarantees a pre-determined amount of money to the insured person’s nominees if the person passes away within the policy period. Term insurance for life should be a necessity if you have family members who are financially dependent on you and you are the sole breadwinner. It can likewise prove to be handy if you have liabilities like an auto loan, a home loan, or other obligations.

It is a type of term insurance where the policyholder pays a constant premium, but the coverage amount or the sum assured, decreases every year by a fixed percentage, either on a monthly, quarterly, or yearly basis. Decreasing term insurance, also known as mortgage term insurance, is usually bought by homeowners to pay off debts and loans to ensure their mortgage is settled after their death.

Level term insurance is one of the most popular types of life insurance that offers you protection in the event of your demise within the term of the policy. The amount paid as premium as well as the sum assured does not change over the course of the policy term, unlike decreasing term insurance.