There is no assurance of life, who knows what will happen tomorrow. In such a situation, the biggest worry is about our family, what will happen to them if something happens to us? To overcome this worry, people get 'insurance', which is a kind of security cover. But when we go to buy insurance, two names confuse us the most - life insurance and term insurance. Some people do not know the difference between these two. Let's clear this confusion and know what term insurance is, how it is different from life insurance, and what things need to be kept in mind while buying it.

Understand the difference between term and life insurance.

A Life Insurance policy works to provide coverage for life. In this, if any kind of accident happens to the insured person and he dies in it, then his nominee or family members get both death and maturity benefits as financial help from the insurance company.

Term Insurance is a type of life insurance policy that provides coverage at a fixed payment rate for a limited period. In such a situation, if the insured person dies during the policy period, then the amount of cover is given to the nominee in a lump sum. This provides financial security to the family. Term insurance does not provide maturity returns like life insurance.

Keep these 5 things in mind while buying term insurance.

Understand your income base and decide the insurance cover based on that. Experts believe that the term insurance plan should be 10-15 times the income.

The sooner you buy term insurance, the more benefits you will have. At a young age, you will be able to lock the insurance at a cheaper premium.

Buy a term insurance plan only after assessing the source of income, loans and liabilities, family responsibilities, lifestyle, financial goals, etc. While buying a term insurance plan, read its terms and conditions carefully. Check which reasons of death will be covered in the policy because not every type of death is covered in term insurance. Claim money is received only when the policyholder dies due to reasons covered under the term plan.

It is better to buy a term insurance plan online. In this, you do not have to pay commission to the intermediary. The premium is cheaper. You fill all the details yourself, due to which there is less scope for error.

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