Term insurance is most commonly purchased life insurance policy, which utilizes lower premium and provides greatest amount of coverage to need person. Sometimes it is also called as pure life insurance as well.
The major benefit of having term insurance is, let’s say if an insured bought this policy and if something happens to the insured during the term of the policy then it pays their beneficiaries all the associated benefits tax free. Also, if the policy either expired or cancelled prior to insured death then, nothing payable to beneficiary at the end of the term.
This type of insurance has a no cash value, and it may not require medical exam in some instances depending on the value of the policy.
Overall, term insurance turns out as the best affordable purchasing type of policy which provide financial protection to an individual for certain years.
