Term Insurance is good option for life insurance decisions.
We need an insurance to protect the family for uncertain events. But we observed people are taking the life insurance protection with an investment objective. They wanted to cover the life risk with sort of savings in mind. The disadvantages are higher premium payments, lower amount of insurance coverage and less rate of return on the savings made. That means under this plan we neither reach investments objective of to earn good return nor good amount of insurance coverage.
The best option to cover the life risk is to buy term insurance policy. Under this term plan there will be higher amount of insurance cover with lower premium. This term plan is purely insurance to cover the life risk and money will not come back unless there is disaster.
There are many opportunities to park the savings and get good return on investments in market. The linking of savings with life risk is not at all good decision for anybody. Hence, we suggest buying insurance policy under term plan.
Then what is term insurance plan. This is purely insurance plan to cover the life risk. The premium paid will not come back at the end of the term of insurance. However, if there is loss of life during the policy period the sum assured is paid to the nominee of the insured person.