Term insurance is the simplest form of life insurance. You pay a premium for a fixed term, and if you pass away during that term, the insurer pays the sum assured to your nominee. If you survive the term, a pure term plan pays nothing, which is why premiums are lower than other life insurance plans for the same cover.
Details to check
- Sum assured: the amount your family would receive.
- Policy term: how long the cover lasts.
- Premium payment term: regular, limited or single pay.
- Riders: optional add-ons such as accidental death or critical illness benefit.
- Exclusions: situations in which the claim is not payable, such as suicide within the first policy year as per policy terms.
Honest disclosure
Fill the proposal form yourself and disclose your health history, habits such as smoking, and existing policies accurately. Incorrect disclosure is one of the most common reasons for claim rejection.
Keep your nominee informed
Tell your family about the policy, the insurer and where the documents are kept. Update the nominee after major life events such as marriage or the birth of a child.
Insurance is the subject matter of solicitation. Please read the sales brochure and policy wording carefully before concluding a sale.