Key features of a Term Plan:

1. Temporary Coverage: Term plans offer coverage for a specific period, typically ranging from 5 to 30 years or more. Once the term expires, the policy ceases, and there is no cash value or benefit paid if the insured survives the term.


2. Death Benefit: In the event of the insured's death during the term of the policy, the death benefit is paid out to the beneficiaries named in the policy. This benefit can help replace lost income, cover outstanding debts, and meet other financial needs of the family.


3. No Cash Value: Unlike permanent life insurance policies (e.g., whole life or universal life), term plans do not accumulate a cash value or offer any investment component.


4. Affordable Premiums: Term plans are generally more affordable compared to permanent life insurance policies, making them an attractive option for individuals seeking higher coverage amounts at lower premiums.


5. Renewable and Convertible: Some term plans offer the option to renew the policy at the end of the term or convert it into a permanent life insurance policy, providing flexibility as the insured's life circumstances change.


6. No Surrender Value: If the policyholder decides to stop paying premiums or cancels the policy before the term ends, there is no cash surrender value, and the coverage ends.

Term plans are well-suited for individuals who want to provide financial protection for their loved ones during specific periods of their lives when the need for insurance is typically higher, such as when they have dependents, outstanding debts, or significant financial responsibilities. It's important to select an appropriate term length based on one's financial goals and the needs of the insured and beneficiaries. As with any insurance decision, consulting with a financial advisor can help in choosing the most suitable term plan for individual circumstances.