FAQs 217 views October 27, 2018

This is a commonly asked question. The answer is “The longer, the better”. The purpose of term insurance is to ensure death benefits to the nominee(s) in the event of unfortunate death of the policyholder during the policy period. However, if the policyholder continues to live beyond the policy period, the amount of premiums would remain with the insurer. The purpose of term insurance is marred if the nominee(s) does not avail the death benefits because of the limited policy period. This means that the insured must choose a policy period, which ensures that the dependents are not bereft of the necessary amount of sum assured.