What is term plan & what is it’s purpose?
Term plan is a pure risk plan. It covers an individual’s financial loss due to loss of life. Thus, it helps to safeguard family members of primary earning member. Also there are multiple reasons other then this. Term plan is taken for the following purposes: Loss of Income Due to Loss of Life: It compensates the family in financial terms. One can secure 20-30 years of income for the family in case of his/her loss of life. To Cover Risk of Loan Related Liabilities: In case of death of the individual, institutions like banks get protection against loan recovery related