Term insurance is the simplest and oldest form of assurance and provides for payment of the sum assured on death, provided death occurs within the policy tenure or term.

1. TERM INSURANCE

2. WHAT IS TERM LIFE INSURANCE?

3.  Term insurance is the simplest and oldest form of assurance
and provides for payment of the sum assured on death,
provided death occurs within the policy tenure or term.
Should the life assured survive to the end of the term then
the cover ceases and nothing is payable.
 Term insurance is not investment. It is expenditure. Like the
premiums you pay for your car you do not get any 'benefit' if
the event for which the cover is taken does not happen and
there is no claim. What you buy in term insurance is peace
of mind and risk cover when it is basically needed. In life
insurance term policies you get tax benefit on the premiums
paid and tax-free payment to your beneficiary in case of
death.
 Thus, the purchase of term insurance is comparable to
purchase of property or car insurance where the premiums
are paid every year. In its purest form term insurance covers
risk and risk only for one year and can be renewed every
year by paying increasing premium and this form is called
annual 'Renewable Term Assurance'.

4.  Term life insurance is just life insurance, and nothing
more. Almost 100% of the premiums you pay are used
to cover the cost of the insurance. For this reason,
term insurance policy holders are not eligible to
participate in profits earned by the insurer on
investments.
 No surrender values accrue under term insurance
plans. A term insurance plan will not acquire a paid-up
value, unlike say endowment plans, if discontinued at
any point of time. Loans against these policies are not
available. Term policies do not participate in profits of
the insurer.

5. TYPES OF TERM INSURANCE: SEVERAL VARIATIONS OF THIS
PUREST FORM ARE AVAILABLE.
 Level premium term insurance is one where the premiums
payable throughout the selected term remain the same for a
pre-fixed sum assured. This eliminates the problem of paying
increasing premiums year after year. It is generally available
for periods ranging from 5 years to 30 years.
Convertible term insurance is where the life assured initially
buys a pure term insurance policy with the option to later
convert it into a plan of his choice e.g. permanent insurance
like whole life or endowment. For instance, the policyholder
can convert a term insurance policy after 5 years into an
endowment plan for 20 years. In that case the premium
changes and the policyholder is charged level premium as per
the newly selected term and plan.

6.  Term insurance with return of premiums comprises risk cover and
savings element. In this policy the premiums paid are returned to the
life assured if he/she survives the policy term. Premium for this policy
is normally higher than for pure term insurance because some portion
of the premium you pay is used up for risk cover and the balance -
savings component — is invested in order to be able to return the
amount you pay to you at the end of the policy. The insurer earns
some return on investing the savings component of the premiums you
pay. This return plus the savings component itself are later used by
the insurer to return the full premium paid, back to you at the end of
the policy.
 Term insurance with guaranteed renewal is a plan where at the
end of the initial term, the policy can be renewed for a chosen term
say, another 5 or 10 years, without any further proof of insurability
e.g. medical examination

7.  Decreasing term insurance is where the sum assured
steadily decreases year after year to match the decreasing
insurance need. Such a policy is normally taken where the life
assured has taken a large loan, e.g. a housing loan. Here the
risk is of the person dying before being able to fully repay the
loan. Therefore, the sum assured of the policy is usually taken
as equal to the amount of loan to be repaid so that in case of
demise of the loanee before he/she is able to repay the full
loan, the sum assured or insurance proceeds can be used for
this purpose. The policy term is equal to the time period in
which the loan is to be repaid. As the outstanding loan amount
decreases with repayment installments the sum assured
under the policy also declines to match the outstanding loan
amount.

8.  Term Insurance as a rider: Term insurance benefit is
also available as a rider to other basic insurance plans such
as endowment plan, as value addition. For example, say a
person has taken a 20 year endowment insurance policy.
However, in the fifth year of this policy he feels that he should
have higher death cover for the next 10 years as his children
are young and would need greater financial support in case of
his demise. In such a case, he can take a 10-year term
insurance plan for the required additional cover amount as an
add-on/attachment/endorsement to the basic endowment
policy such that both policies run together. In case of the
person's death during this 10 year term his beneficiaries
would get the sum assured under both the basic endowment
policy as well as the add-on term insurance policy.

9.  E-term insurance: Of late, several insurers have started offering
pure term insurance policies online or 'e-Term Insurance' at very
reasonable rates. Policies sold online are cheaper because agent
commissions get cut out.
 Source : http://economictimes.indiatimes.com/your-money/what-is-
term-life-insurance/articleshow/49169208.cms

10. https://www.facebook.com/bajajallianzlifeinsuranceltd
http://plus.google.com/+bajajallianz/posts
https://www.linkedin.com/company/bajaj-allianz-life-
insurance-co-ltd-
https://twitter.com/bajajallianzLIC

11. To know more on Term Insurance :
https://www.bajajallianz.com/Corp/term-insurance/isecure-insurance-
plan.jsp
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